Technological revolution

K-Challenge's Stephan Kandler discusses their acquisition of the TNZ boats and - for the first time - a Cup team's technology

At this early stage of the America's Cup cycle Alinghi and Oracle are both fully up and running and there is much gesticulation and moving of containers on the new Luna Rossa base in Valencia. Otherwise there is a tremendous amount of noise, much of it talk, rumour and speculation, from the 18 or so other America's Cup challenges as they do the board room shuffle in an effort to find the sponsorship bucks to get them to Valencia in 2007.

For this latter group of teams securing corporate backing is essential if they are to get to Valencia, but the difference between them at this stage is their track record and their assets. Some hold a significant lead in this respect. GBR Challenge, for example, are in good shape having participated in the event once already, owning four ACC boats, a base, a build facility and a design team that hasn't switched their CAD programs off since the last Cup cycle. For the first time challengers making an impact is far harder and it is because of this that K-Challenge are this morning announcing their acquisition of Team New Zealand's 2000 generation Cup boats, NZL57 and 60. This deal is of signficance because not only is the 2000 Cup winner NZL60 one of the most successful ACC boats in the recent history of the event, but also because for the first time one team has been able another's technology, as allowed now under the latest America's Cup Protocol.

"We have design features like VPPs, tank testing data, drawings, and all the things we need about the boats until 2000 and then the evolution they made up until the hula," K-Challenge's Stephane Kandler told thedailysail. This is a big jump for the Cup. As a typical example when GBR Challenge bought the Nippon Challenge boats none of the data about the boats came with the package and the design team had to set about accurately mapping and measuring the boats before they could become a useful test platform. Importantly neither did they have details of the boat's engineering. Thus many of the mishaps that teams have experienced - masts falling down, keels falling off, etc - sailing hand-me-down boats can be attributed to not being allowed to know the boats' design tolerances.



Above: Stephane Kandler

Now K-Yachting have not only the boats, but the back-up data to go with NZL60. In addition they have acquired the R&D work the Team New Zealand designers put into evolving NZL60 for the two years after the 2000 Cup, up until they committed to the 'hula'.

"It was clear that to have the boats is fine but you have to work a lot to get all the information right," says Kandler. "We will probably use different [design] tools to what Team New Zealand used - different software, etc. So with the results we get we can rate our tools to see if they’re efficient or not which is probably the most interesting thing. You can also see what their technology and the philosophy is because we also asked Team New Zealand how their design progressed. This will help our design team because in France it is very hard to get accurate America’s Cup technology so we were keen to get this kind of information and Team New Zealand is the most inventive team and they have always been the most advanced - so for us it was a good choice."

He continues: "You might say 2000 is old technology but NZL60 was far ahead [of her time] and Alinghi took it from NZL60 and developed it. We have to do the same, but the other thing is that Team New Zealand kept on innovating with things like the hula. We will have data about the structure of the boats and that is very interesting, because you have to build the boat in France - that is one of the constraints you have to live with. I think you have good architects in France, but you need to start from a higher base than we’ve had in the past."

For first time Cup teams being able to buy technology as well as old boats means they can get up to speed on the vital design side much faster. However at present it seems to be a buyer's market for such gear. Many established or defunct teams have 2000 generation boats to sell and in some cases the 2002-2003 vintage too. Hot properties up for grabs include the OneWorld and Team Dennis Conner assets, but these at present have yet to find a home.

"We knew we could not afford them - that was clearly a fact," says Kandler of the One World package. "It was a good package and if we had a big sponsor it would be fine, but there were other possibilities. I didn’t find it too hard to buy, but I think the relationship was very good with Team New Zealand and that is the reason why we are announcing it with them [Dean Barker attended today's press conference]. Everyone is happy with what he has right now. I guess Team New Zealand was hoping for some money and they have it and we needed some boats to move forward to show to the world that we are concrete and serious."

Kandler is also pleased that they were able to get both boats. "That was a goal we set ourselves: to make sure we have a boat on which we can work and another boat which can go around the world and sail at the different events." NZL57 will be arriving in Europe at the beginning of August and K-Challenge plan to enter her in the pre-regattas in Marseille and Valencia with Thierry Peponnet (right) as skipper, Kandler confirms. NZL60 will follow later in the year.

Over the winter the boats will undergo a thorough test program before being upgraded to version 5 of the America's Cup rule. Importantly Kandler stresses that the deal with the black boats is only a charter arrangement for the duration of this Cup cycle and although they can make all the mods they like to the boats as if they were their own, these pieces of Kiwi history will return to their homeland at the end of 2007.

First, however, they need a design team. Last year K-Challenge announced the appointments of America's Cup veteran John Cutler and foirmer OneWorld designer Phil Kaiko, but have since "had to release them". "We decided to put our financial efforts elsewhere and we could not afford to have them," admits Kandler. "We regret that because we were very happy to work with them despite the fact we never designed anything, but we worked a lot on the preparation of the team and we have a good relationship."

K-Challenge have a grand meeting in early May where they hope to sign up a design team. Already they have appointed Dimitri Nicolopoulos, formerly of America True and Le Defi Areva, as Technical Co-ordinator and the man in charge of the design team. An engineer from France, Nicolopoulos has a company that specialises in CFD work for the car industry. Dawn Riley is still running K-Challenge alongside Kandler.

The step after this will be to hire the sailing team. "We have no worries about that," says Kandler. "We are building this team. We have been sailing with so many people over the last 10 years that we know enough people. Now we need to go back to them. Once you have the boat it is much easier to get people to sail with you than those who say ‘we might have a boat one day'.”

Having the NZL boats will also help K-Challenge's quest for sponsorship. "Today we move forward because we have to, but we take the risk to do so because we believe there is a great opportunity for sponsors to move into the sport now." This is important as K-Challenge have no billionaire to fund or part-fund them. The deal with Team New Zealand is the result of a loan from a sympathetic bank.

"I think the way you sell your product will give you the ability to be good on the water after, not the other way round. If you think you have the best team and people will come to you because you have big names, that’s wrong because these people are not known to anyone [outside sailing]. Apart from maybe Russell Coutts and Paul Cayard, there are no names who can attract sponsors. With a team which is more of an outsider, you can attract a sponsor if your marketing is better. So we have put all our effort in over the winter to set up a marketing offer and a product which is strong in this respect."

Two years have now passed since K-Challenge began knocking on board room doors for Cup sponsorship and Kandler says they have learned many valuable lessons. As a result they have completely reworked their proposal. "Our main strength is the marketing and I’m really convinced that what we have proposed is very professional." He will not divulge exactly what comes in their package. "There are a lot of things we are offering and these are the secret weapons we have. Not everything is on the boat. We have thought about other projects which are linked to the sports project to help attract sponsors and other things we can set up to convince them to join us."

K-Challenge also now have some powerful players helping them in the hunt for money. "We are working with people who have worked in sport for more than 15 years and they have a very good approach," says Kandler. "We have worked with many agencies and this is the first time I have seen something I like. We are working with LZA Business Development in Paris and it is a company led by two women. They financed the Football World Cup in 1998 in France, they funded and promoted the Paris Atheletics Worlds in 2003, they work for the French football league and are involved in many other sports."

America's Cup Management's desire to develop the commercial side of the America's Cup has also helping their cause greatly, say Kandler. "We are all expecting that the event gets a wider audience this year, the pre-regattas are a good thing and I know that ACM are doing a good job to promote the event. I know that with sponsors many can be interested, but to get them to sign the cheque is another thing. We had to convince them it is the right choice and that the America’s Cup will be THE big event in the years ahead. Everyone agrees ACM is doing a great job. Actually we are doing all these things because we believe that the AC 2007 will be the biggest sporting event in 2007. I am really convinced it is the right choice to make."