Budget 2018: Government announce $100 million 'support package' for America's Cup

HAGEN HOPKINS/GETTY IMAGES

Team NZ chief executive Grant Dalton and helmsman Peter Burling celebrate with the America's Cup.

The Government will put $100 million towards a "support package" for New Zealand's hosting of the America's Cup in 2021, it was announced during Thursday's Budget.

Team New Zealand won the right to host sailing's blue riband event by beating Oracle Team USA in Bermuda last year.

Following lengthy negotiations, Auckland was eventually confirmed as the host city in March after an agreement over the structure of the base village was reached by Team NZ, Auckland Council and the Government.

At the time, Auckland mayor Phil Goff said the construction and related costs for the base layout at Wynyard Point would total $212m, with council contributing $98.5m.

A statement from Team NZ said the Government's contribution would go towards the infrastructure and running of the regatta, and not to the team itself.

The Kiwi syndicate has received significant public funding in previous years.

They were given $36m by the Government for the 2013 regatta in San Francisco. They also received $5m in bridging finance to retain key team members after losing the Cup match to Oracle, while a decision was made on whether to mount a challenge for the next event.

But Team NZ said it was important to note that the funding revealed on Thursday was not going towards the team.

"The $100 million America's Cup support package announced in the budget today is the government investment in the development of the infrastructure and the running of the America's Cup and associated events themselves," the statement said.

Goff said confirmation of the Government's $100 million towards the event would "help ensure we create a vibrant event and lasting legacy for the city".

Construction of the America's Cup team bases is set to start later this year once the council gets resource consent.

They need to be ready by the end of next year when the first challengers arrive in Auckland.