Auckland mayor explains extra $14.5 million funding for America's Cup, hopes Team NZ win in 2021 to maximise return

Auckland mayor Phil Goff says the extra $14.5 million investment made into the 2021 America's Cup will give plenty of return to the region - especially if Team New Zealand can retain the Auld Mug.

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Phil Goff couldn't guarantee there won't be even more money added to the campaign but is confident it will all be worth it. Source: Breakfast

Mr Goff appeared on TVNZ1's Breakfast this morning to explain the extra funding after it was revealed yesterday Auckland ratepayers would be the ones forking out to build the America's Cup village.

"The original cost estimates weren't based obviously on the final design," he said.

"When they came back, they came back [asking for] another $100 million and I hit the roof and said that's absolutely unacceptable.

"They pared it back to the final additional cost of $29 million to Auckland and to central Government which is $14.5 million each."

Mr Goff said he had asked for a full explanation into why extra funding was needed and he isn't happy about the budget blowout.

However, he is happy that Auckland will get a big return in 2021.

"This is going to give a boost to the New Zealand economy of between $600 million and a billion dollars. It's going to create up to 8,500 jobs - 95 per cent of those will be in Auckland.

"There will be a focus on showcasing Auckland - the beauty of our harbour, the skill of our sports people... but also showcasing our technology."

A third of the money will be a contigency fund to cover any unforeseen issues.

Mr Goff added Auckland could see even more returns from the extra investment should Team New Zealand lock away the Auld Mug in their first defence.

"No pressure on Team NZ but we've paid for the infrastructure this time, we anticipate and hope that Team NZ will win next time, maybe the time after, so we get all the benefits a second and then a third time without that extra investment required."

The Cup Village project will cost $152 million to build on the Auckland waterfront.