The Biz

What They Made

We'll admit it - we're fascinated by how much money some of the big names in this sport make. Clearly there was a sharp increase in salaries when some of the Big Money showed up for the last couple of America's Cups, most notably for the last go 'round. We'll get into what the sailors make in a future segment, but for today here's a little look into what at least some of the designers made for the '02 AC. Not to forget the importance of the timing of these offers and deals: compensation was greatly inflated at that time because of the influx of rich challengers competing for the services of a very small number of individuals. Alinghi was vexed by that, but with the old-fashioned way of using design plans brought with them from TNZ, and sailing like hell, they managed to overcome!!

A start at the top, both in terms of money and notoriety, (although without much success in the actual AC), has to begin with Bruce Farr and Associates. Farr's was a package deal that doesn't break out by individuals, but the total package was something in the vicinity of $20M, including costs and other designers. One doesn't need to be a genius to think that the house retained a good portion of that.

Doug Peterson, principal designer from Prada, would have received about $4.5+M (base, bonuses, perq's, etc.) had he been paid according to his contract. But he wasn't, so the final number will be closer to 8 figures. Seemingly innocuous contractual provisions overlooked by his Italian lawyer and the enormous financial downside if Peterson prevailed in a lawsuit, gave Prada little choice but to bend over and grab the soap Peterson offered agreed to drop. It is clear Peterson should have ignored Bertelli's pleas to return and instead taken OneWorld's much more lucrative offer.

Huge fan of Sailing Anarchy, Bruce Nelson, ultimately signed for just over $2M with One World, but that number was moved around after financial issues arose. We say ultimately because unbeknown to many, a promised Oracle agreement fell through due to the already hired designer using his considerable influence over Ellison to veto the hiring. Interestingly, Prada authorized an offer of $1.5M to Nelson to join in August 2000, but other considerations made a deal promised by Cayard more attractive at the time.

$2M went to Reichel/Pugh for their work with TDC, but that will now increase, due to their huge success in the 80' plus market. John Reichel can draw, and he'll be getting very well paid for it.

Lawrie Davidson was paid $1.5M the same as Heiner Meldner plus perq's.

Rolf Vrolijk got $1M +bonuses - we are told that changed downward when they increased design staff. Clay Oliver apparently had some sort of weird deal where he was paid by a sponsor or some such, and received something like $10K/mo. Phil Kaiko got $750, and David Egan $2M. Manny Frers received something like $1M from the Swedish, and Juan-ker K was paid $500K, which was $500K too much.

These numbers have been put together with the best of our information, and of course we cannot purport to their accuracy, but it would be a safe bet to say we're in the ballpark. Good times.