ACOC Lays Off Seven : America’s Cup: Slow payment of rights fees causes cash shortfall.

The America’s Cup Organizing Committee, experiencing serious cash-flow problems because of slow receipt of foreign television rights fees, has laid off seven employees.

The ACOC, which reduced its staff on Monday, could be in for further restructuring. The board of directors will meet today, when it will be presented with different options, said Thomas M. Mitchell, the ACOC’s senior vice president of operations.

The ACOC was formed by the San Diego Yacht Club to manage the 28th defense of the America’s Cup in 1992.

“We had a very good finance committee meeting today,” Mitchell said Tuesday. “We have what we believe is a good plan of action that we will present to the board. We think things will progress forward.

“At this point, I don’t know whether we’ll have more reductions or not. We may. It’s really up to the board. We have a couple of plans, so it depends on which way they vote. Either way we think we’ll come out of that meeting with a good direction and good plan, but I can’t discuss it.”

The layoffs reduced the ACOC staff from 25 to 18.

Additionally, four employees of America’s Cup Services, a marketing agency owned by the ACOC, were laid off Tuesday.

Mitchell said the ACOC hasn’t received some foreign television rights payments, including more than $1 million from Italy for the International America’s Cup Class World Championship in May.

The ACOC, in turn, owes more than $1.5 million to its vendors and has had to reduce its budget.

“I think the major thing is that the revenue projections all the way across the board are less than expected, but that’s true around the world,” Mitchell said. “We have taken a look at that and restructured the projections, but to keep going you also have to reduce your expenses.”

Mitchell denied reports the ACOC is in danger of having to file for bankruptcy.

“There is absolutely no problem there, no problem as far as the future of the event,” Mitchell said.

“Normally, the America’s Cup has three or four years in between. We lost the first year because of the court case” stemming from Michael Fay’s unorthodox 1988 challenge. “The first year is the organizing and marketing year, and we lost it. We’re still trying to recoup here. Once we start getting foreign rights in here, we’ll be fine.”

Overall, the ACOC figures it will receive $4 million to $6 million in foreign television rights fees.

Among those laid off by the ACOC were Pete Litrenta, vice president of communications; Michelle LeBeau, director of special events; and Barbara Heineback, director of protocol.