From near disaster to hopeful contender, American Magic aims to reclaim sailing’s most coveted trophy.

  • American Magic is the only U.S. team in this year’s America’s Cup.
  • Doug DeVos and John ‘Hap’ Fauth are leading a revamped $100 million project.
  • The team aims to restore the America’s Cup trophy to the New York Yacht Club.
  • American Magic’s new boat, Patriot, is showing promise in early races.
  • The team has undergone significant structural and operational changes since their last attempt.

American Magic is the sole U.S. representative in this year’s America’s Cup, and its journey has been anything but smooth. Three years ago, Doug DeVos and John ‘Hap’ Fauth faced a major setback when their initial attempt ended in disaster, with their boat capsizing and nearly sinking. Now, they are back with a renewed focus and a budget exceeding $100 million, determined to bring the trophy back to the New York Yacht Club, which hasn’t won since 1980. nnBoth DeVos, co-chair of Amway and owner of the Orlando Magic, and Fauth, founder of the Churchill Companies, have extensive experience in turning around ambitious projects. They are now applying that expertise to American Magic, aiming to transform it into a professional sports team. This time, they have a new boat, a new chief executive, a U.S.-focused design team, and a state-of-the-art training facility in Pensacola, Florida. nnThe new boat, also named Patriot, has already shown potential, finishing third in the opening round of the regatta. However, the duo has set their sights even higher, as no American team has won the prestigious Auld Mug since 2014. They are not just looking for a one-time victory; they want to establish a sustainable operation that keeps the U.S. competitive in future competitions. nnAfter a disappointing performance in 2021, where American Magic failed to win a single race, the team has made significant changes. They have revamped their structure and business model, focusing on long-term commitment and improvement. The U.S. team is currently in third place in the qualifying series, showing signs of progress but still facing tough competition from teams like Italy’s Luna Rossa and INEOS Britannia. nnThe new leadership has brought in experienced sailors, including Olympic champions, and introduced innovative training methods, such as using ‘cyclors’ to power the boat’s hydraulic systems. While the team has had some successes, they acknowledge the need for continuous improvement. As they prepare for the next rounds, the focus remains on refining their strategies and enhancing their performance to ultimately reclaim the America’s Cup.·

Factuality Level: 8
Factuality Justification: The article provides a detailed overview of American Magic’s participation in the America’s Cup, including background information, team changes, and performance updates. While it is mostly factual and well-researched, there are minor instances of subjective language and potential bias in the portrayal of the team’s efforts and challenges, which slightly detracts from its overall objectivity.·
Noise Level: 7
Noise Justification: The article provides a detailed overview of American Magic’s efforts in the America’s Cup, including insights into the team’s changes and challenges. It stays on topic and offers some analysis of the team’s performance and strategy. However, it lacks deeper exploration of the broader implications of these efforts and does not hold powerful individuals accountable, which prevents it from achieving a higher rating.·
Public Companies: Oracle Team USA (N/A), North Sails (N/A)
Private Companies: American Magic,Churchill Companies,Orlando Magic
Key People: Doug DeVos (Co-chair of Amway), John ‘Hap’ Fauth (Founder of Churchill Companies), Mike Cazer (Chief Executive), Ken Read (President of North Sails), Tom Slingsby (Olympic Gold Medalist), Paul Goodison (Olympic Champion), Terry Hutchinson (President of Sailing Operations), Patrizio Bertelli (Chairman of Prada), Jim Ratcliffe (Billionaire backing INEOS Britannia), Ben Ainslie (Helm of INEOS Britannia)

Financial Relevance: Yes
Financial Markets Impacted: The article discusses American Magic, a U.S. entrant in the America’s Cup yacht racing competition, and mentions the involvement of wealthy individuals like Doug DeVos (co-chair of Amway) and John ‘Hap’ Fauth (founder of Churchill Companies). The event has teams with significant budgets exceeding $100 million, and billionaires like Jim Ratcliffe backing INEOS Britannia. However, the impact on financial markets or companies is minimal.
Financial Rating Justification: The article discusses a yacht racing competition and the involvement of wealthy individuals in funding the teams, which could be considered a financial topic as it involves significant investments and budgets. Additionally, there are mentions of billionaires backing different teams, but the impact on financial markets or companies is minimal.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: The article discusses the efforts of American Magic in the America’s Cup sailing competition, but does not mention any extreme events that occurred in the last 48 hours.·
Move Size: No market move size mentioned.
Sector: No
Direction: Up
Magnitude: Small
Affected Instruments: Stocks

Image source: Geoff McKay / https://www.flickr.com/photos/129472387@N07/50951183837

Reported publicly: www.wsj.com