The Spanish city has a multi-billion dollar COVID-19 relief fund to dip into.
Team New Zealand officially rejected the Government's offer on Wednesday.
It comes after the syndicate's boss, Grant Dalton, indicated a deal was highly unlikely.
A deal between Team NZ and the Government is becoming increasingly unlikely.
Speculation is still rife as to where the next Cup will be held.
Team NZ are said to be considering a challenge at the birthplace of the America's Cup.
Speculation has already begun over where the next America's Cup will be contested.
Sir Ben Ainslie only needed to start a 'ghost race' against the absent American Magic to progress.
Skippers from the UK, Italy and the US all waxed lyrical about our COVID-19 efforts.