BMW backs Oracle Racing

Oracle BMW Racing is one of the favourites of the nine AC challengers

HAMBURG, Germany -- The BMW motor group has joined billionaire Larry Ellison's Oracle America's Cup team with a sponsorship deal worth some $20 million (£13 million).

The deal comes as preparations for the America's Cup get under way, and the challengers dig deep into their pockets to try to wrestle the trophy away from Team New Zealand.

The challengers will spend more than half a billion dollars in the head-to-head battle for yachting's most prestigious prize scheduled for early next year.

Oracle Racing was already one of the best-funded America's Cup teams with a budget of $85 million, which Ellison, a keen yacht owner and one of the richest men in the world, put up from his personal fortune.

Alinghi and Prada will spend nearly $60 million (£40 million) each, while Team New Zealand has a $35 million budget -- which has still not been raised.

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BMW's Senior Vice President of Marketing, Karl-Heinz Kalbfell, said: "High performance sailing is now the third strong pillar of our sporting commitment in addition to Formula 1 racing and our involvement in golf.

"In Oracle Racing we have found a partner which embodies the most modern high-tech, the highest quality demands and the constant provision of the most innovative solutions in the same way as BMW does."

Oracle Racing has been renamed Oracle BMW Racing in recognition of the German luxury car maker's contribution.

Oracle BMW Racing Chief Operating Officer, Bill Erkelens said: "We are very pleased to have the innovation and competitiveness of BMW behind our campaign for the America's Cup.

"Their support not only speaks well for our team but is a great asset to the sport of sailing."

The team has just launched its two new Bruce Farr designs US71 and US76 in Auckland, New Zealand in preparation for the Louis Vuitton Challenger elimination series that starts on October 1.

Oracle BMW Racing is one of the favourites of the nine challengers to face Team New Zealand in the America's Cup Match that starts with a best of nine series in February 2003.

One of Team New Zealand's main sponsors is the German software company SAP -- a major Oracle competitor.

The first ever German America's Cup Challenge Illbruck, which won the 2002 Volvo Ocean Race, had to cancel its 2003 participation in the race due to a lack of funding.

Illbruck had already built a boat and had a base in Auckland and only needed an additional $6 million.

Kalbfell said BMW had spoken to Illbruck but felt Oracle would go further in the 2003 event.