A leading economist says pouring millions into hosting the America's Cup is a waste of money.
Team New Zealand is currently in exclusive negotiations to host the next event, but a massive offer might not be enough to keep it in Auckland.
In a bid to ensure the event stays, the Government and Auckland Council have put together an offer reportedly worth $100 million.
"Can Auckland afford it?" asks Mayor Phil Goff. "I've made it very clear that we're not about to throw money at any project.. and we've already invested the money that was needed for the infrastructure."
Before the last Cup, the Council and Government spent $289m on clearing the tank farm, building the bases, and hosting the event.
Leading economist Eric Crampton says the juice isn't worth the squeeze.
"Spending another $100m on it here doesn't make particularly good sense," says Crampton, an NZ Initiatitve senior economist.
"When Governments compete with each other to subsidise boat races that rich people tend to enjoy, the winners aren't taxpayers."
Goff argues there are clear benefits but won't be upping the current offer.
"There is an absolute limit to the amount of money that a ratepayer or taxpayer can be expected to pay as a hosting fee," says Goff.
Team NZ say it's premature to comment while negotiations continue but they have received an offer, which they're carefully considering.
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