British Syndicate Scuttles Bid for America’s Cup

The new America’s Cup economics have forced Great Britain’s Port Pendennis syndicate--the second challenger this month--to withdraw from the 1992 competition at San Diego.

Bengal Bay, one of two challengers from Japan, withdrew earlier. Now there are 10 challenge syndicates planning to compete next January.

And some of them are shaky.

For the last multination defense at Fremantle, Australia, in 1986-87 there were 13 challengers--including six from the United States--and five defense syndicates.

This time only two defenders remain: Team Dennis Conner and Bill Koch’s America-3.

Last week, the Defense Committee refused to accept the entry of another defender, the Independence group headed by boat builder Al Constantine of Connecticut.

Three others previously accepted by the committee subsequently folded.

The reason was the same: money.

The difficulty lies with the current world economy as well as the cost of the boats in the new International America’s Cup Class--about $2.5 million each as against $500,000 for the 12-meters last used at Fremantle.

Peter de Savary, head of the Port Pendennis team, had challenged for the Cup at Newport, R.I., although he skipped 1986-87 at Fremantle. Earlier this month he said the team was ready to build its boat.

But Sunday he said in a statement issued through San Diego spokesman Cecil Scaglione: “I have decided to retire from the America’s Cup after 10 years. I have campaigned to bring this trophy back to England, but the event has become of such a commercial scale that it is impossible to compete as an individual.

“It has proved difficult to find sufficient British sponsorship at a time when businesses are concentrating on the problems of the recession. Two weeks ago when I decided to build a boat, it was with the knowledge that we had a design lead on the world and also a substantial sponsorship offer--though which generous was not large enough to finance the challenge.

“I had hoped that one of two other potential sponsors close to a commitment would go firm. This has not happened.”

Although he is dropping out, De Savary said he would not formally withdraw the challenge by the Port Pendennis Yacht Club for a month, in case another British syndicate was formed to pick it up.

Among the 10 challengers remaining, Italy’s Il Moro di Venezia, Japan’s Nippon Challenge and the New Zealand syndicates seem solid. France, Spain and two Australian teams are tightly budgeted but so far are surviving.

However, there are doubts about Sweden, the Soviet Union and Yugoslavia/Croatia--the latter two for political as well as financial problems.