FFirst, F1 has become hot in the US and abroad, thanks in large part to the Netflix series. drive to survive, We introduced the uniqueness of the circuit, its rivalries, and some really fast cars. Then there's the pickleball craze that started during the pandemic and hasn't slowed down much.
Which niche sport will be the next big thing?
Russell Coutts, CEO of upstart professional racing organization Sail GP, a five-time America's Cup winner and 1984 Olympic gold medalist, is certainly gaining momentum in the United States. It makes a case for sailing as a classy elitist country club pastime. He is a two-time World Sailor of the Year and co-founded SailGP in 2018 with Oracle founder and chairman Larry Ellison. His SailGP, now in its fourth season, features teams representing his 10 countries, including the United States, New Zealand, Australia and the United Kingdom, and holds 13 events around the world. The next race will be held at Sydney Harbour, February 24-25. The season concludes with events in New York and San Francisco in June and July, respectively.
According to SailGP, global viewership per event through the first half of this season has increased by nearly 24% compared to Season 3, reaching 13.6 million viewers. The league's social following increased by his 56%, and in November 2023, his 1.784 million viewers watched his CBS broadcast of the race in Spain. This is his SailGP record for American viewers. It became the most-watched sailing race in the United States since 1992. That day, it surpassed the Brazilian F1 race, which drew about 909,000 viewers on ESPN2. That same month, a group of investors led by Marc Lasry, CEO of Avenue Capital Group and former owner of the NBA's Milwaukee Bucks, acquired Sale GP's U.S. team in the largest deal in league history. Acquired. The group also includes actress and producer Issa Rae, world champion heavyweight boxer Deontay Wilder, and former U.S. soccer player Jozy Altidore.
Coutts met with TIME in New York City in mid-January to discuss the trajectory of SailGP, the circuit's high-tech catamarans and the challenges facing the sport.
This interview has been condensed and edited for clarity.
For those not familiar, what is SailGP?
The sport of sailing did not have regular, professionally televised and promoted annual championships until the advent of SailGP. We have a high speed hydrofoil boat. Others call this a formula-style championship on the water. The difference between what we do and what other sports like motorsport do is that our boats are the same. They're constantly evolving and we're introducing new technology, and other teams will be able to access that new technology with us. We are a centrally managed organization. The team actually leases the assets from us, so we can ensure that they are actually identical. This is really about who is the best athlete, not who has the best resources.
Indeed, it is completely different from the traditional image of a yacht.
Peeking into the cockpit of one of these boats feels like looking into an airplane. All control panels are included. It looks like an F1 steering wheel. The steering wheel has various operation switches. If you are paralyzed or above, you may get injured as a club sailor.
What are some key indicators that SailGP is on the right path?
The first year started with six teams. Now he has 10 teams. All six of these teams received funding from the league. Currently, 5 out of 10 teams are funded by investors who bought the rights to those teams. And now, two more sales are on the horizon. In other words, 7 out of 10 projects will be funded externally. And Season 5 will add two more teams.
Season 1 started with five events. Currently he has 13 cases. We hope to be able to host over 20 events each season. We would like to get to the stage where we hold events about once every two weeks. That's pretty much what we have in F1.
Why do you believe SailGP can be the next F1?
Increasing the number of viewers is the first priority. Second, the commercial model is powerful. We started selling teams for between $5 million and $10 million. Now you can't buy a team without $35 million. We know there is a demand for our team. You can't build boats fast enough. I never thought I would be in this position until after Season 5. So the fact that we are already in such a position is very encouraging.
Similarly, there was no charge for the venue in Season 1. We basically begged the venue to let us hold the race. On the other hand, there is competition now. We receive venue fees from most venues. It's becoming a very big part of our commercial model.
and [sponsor] Rolex, I signed a five-year contract in my first year. They came back to us with a new proposal between seasons 2 and 3, extending the partnership for his 10 years. Values can be easily measured. Data doesn't lie. Our partners will verify that data. That's why we have great confidence.
Do you think the “Drive to Survive” effect has carried over into SailGP and more people are interested in watching all types of racing?
We believe that 30% to 40% of our audience has some connection to sailing. Most of them are race fans or general sports fans. They also like individuality. And we haven't really developed that aspect yet. We produce our own little YouTube video series, and last season we had about 2.1 million viewers. It's a behind-the-scenes documentary series. However, there is now strong interest from major companies in producing full-scale documentaries. I think that's how we take our individuality to the next level.
Is there anyone right now who could stand out in a series like this?
There's Phil Robertson. [who races for the Canada SailGP team]. Some prominent people within our organization have described him as the Mad Max of his SailGP. I don't know what will happen. There are moments of brilliance. And the not-so-glorious moments.
Is Robertson like Nick Kyrgios?
That may be an exaggeration, but it's definitely heading in that direction. He's always fighting with referees and arguing with other competitors, which is gold dust for us.
Sorry to be skeptical about the F1 comparison, but why do fans see SailGP catamarans top out on the water at speeds of 60 mph when F1 cars can do over 200 mph? Would you like to see it?
The same people are watching. What we learned is that as long as it's a good race, they'll watch. The Australian team won the first three championships through skill. Currently, he is one of only two teams that have yet to win an event. All but one team from Germany have won their races. We need that to keep those teams commercially viable.
What have you learned from your career as a captain that has helped you run SailGP?
Anyone who reaches the top of their sport doesn't get there through talent alone. We got here by outsmarting our opponents. We'll be better if we just try harder. Do more, do it smarter. So that work ethic has served me very well in my business career.
When I first started working with Larry Ellison, I actually asked him once, “What's the secret to success in business?” He started with a long-winded answer, and I think he saw my eyes glaze over. Perhaps I wasn't following it as closely as I should have. And he actually stopped and said, “You know what? “Do you know what's most important?” Don't give up. ” He's right. Faced with so many challenges, things can go wrong, especially with new staff. And the question is, how do we adapt to it?
Sailing has a reputation as an elite white sport.
absolutely. we don't hesitate to do that. We say that's a problem. And we want to change that.
Having a prominent black investor like Issa Rae could help change that perception. How else do you build diversity?
We go to places like the Middle East, which some say violates environmental goals. I disagree. I completely disagree with that approach. For me, this is an exciting new area and I hope I can add some value. This is especially true for the younger generation. I'm really looking forward to that. Don't close your mind. We have to connect with people. Then we are much more likely to understand each other.