Sailing meets economics: Insights from Alinghi Red Bull Racing

As the sailing world prepares for the Louis Vuitton Cup and the 37th edition of the America’s CupAmerica’s Cup kicking off later this month in Barcelona, Alinghi Red Bull Racing, the UBS-sponsored team, and Nobel Laureates in Economic Sciences share some of the secrets to the mastery of their respective crafts.

Craftsmanship is a concept that encompasses more than just skill or occupation; it embodies dedication, creativity, and a continuous pursuit of excellence. Whether in traditional arts, economics, or the sport of sailing, the essence of craft lies in the interplay of passion, innovation, skill development, and a commitment towards mastery as a lifelong journey.

While the main outputs from the field of economics may be centered around models, theories, and numbers, it is deeply rooted in a creative process. As Nobel Laureate Edmund PhelpsArticle of Edmund Phelps puts it, “A country needs to create an economy that’s a vast imaginarium. A place where everybody is imagining new possibilities. There are a lot of ingredients that are necessary for something like that. Curiosity, willingness to experiment, a desire to innovate.” This same spirit of innovation is critical in sailing too, where constant adaptation and forward-thinking are essential. Yves Detrey, a trimmer for Alinghi Red Bull Racing shares that creative thinking. “Thinking out of the box is a concept that is really needed in the America's Cup,” says Detrey. “We have a big booklet of many rules that we have to comply with. We’re trying to think out of the box to both comply with the rules, making sure we aren’t making mistakes we’ve made in the past, but also making sure that we’re staying ahead of the others.” Smart ideas happen, according to Detrey, when brilliant people are working together on a shared goal.

“The sport of sailing is amazing because it’s in constant evolution,” says Nicolas Charbonnier, a longtime team member and Olympic medalist. “As sailors, we have to adapt ourselves to new boats, to new kinds of sailing, to new strategy, new ways of making maneuvers. It’s constantly evolving, and I love it because it’s always pushing us to change and to try to do better.”

The drive for excellence is integral to the concept of craft. This dedication to excellence ensures that every effort made contributes to a superior outcome, embodying the spirit of true craftsmanship, and here passion is key. In his career as a sailor, Nils Theuninck, a cyclor on the team, says that attention to detail has become more and more important. “As a youth sailor, the most important thing was to have fun and get out there as much as possible,” he says. “The closer you get to the top of the sport, the more attention to detail matters. Throughout the years, it's been more and more about finding these little extra meters around the racetrack that really mattered.” Theuninck is a former Finn (Olympic class) sailor.

The power of commitment and collaboration are equally important in both economics and sailing, and really any craft. In economics, the journey is defined not just by the creative process, but by the continual refinement of skills as well. In sailing, individual dedication coupled with teamwork is what separates competitors from champions.

“My craft of sailing is really about teamwork. It’s a very big team so we need always to work together,” says Maxime Bachelin, helmsman for the Alinghi Red Bull Racing team. “I think if we want to evolve in our own craft, we need to go step by step and repeat it again every day. I think the repetition is making us improve and get better.”

Pietro Sibello, head coach, echoes this. “In sailing, collaboration for sure is a very important thing but in the America's Cup campaign, it’s fundamental,” he says. As the America’s Cup approaches, Sibello says these stages are some of the most important of the entire campaign. “The teams need to come together and work together, not only practically but also mentally. It’s not only about technique, it’s about bonding the people, bonding the team.” As teams grow, this type of tight knit collaboration can be more difficult to achieve but as the head coach, Sibello says it’s an undisputed necessity. When a team is under pressure, it’s important to know what you can expect from the person next to you, he explains. “We will win races, but we will also lose races. There will be tough moment and by knowing each perfectly, we can go through adversity together,” says Sibello.

As Nobel Laureate Myron ScholesArticle of Myron Scholes puts it, “Everything in life is a journey. Let’s go back to basic principles, we take risks, in research, in what we do in life. We have adventures and some adventures along the objective of what you’re trying to achieve are successful and not successful, but you learn from those, or you don’t learn.”

Ultimately, the journey of learning and continuous improvement defines the essence of craftsmanship, whether you are an economist in an academic institution or a sailor out at sea. Sometimes, real magic happens when two different worlds converge.

“Excellence is excellence everywhere in whichever the field,” says Silvio Arrivabene, co-general manager of the Alinghi Red Bull Racing team. “When we have the opportunity to have UBS people at our base, it’s really a good conversation and a good exchange. I think there are many things in common, although from very far apart worlds.”

Whether in the methodical development of economic models or the strategic maneuvers of a sailing team, the experiences and growth gained along the way are as valuable as the final achievements. Craftsmanship in both economics and sailing is a dynamic blend of creativity, innovation, continuous skill development, collaboration, and a deep appreciation of the journey toward mastery. By embracing these principles, the journey itself may be as rewarding as the destination. And above all else, it’s important to remember that, “Sometimes you play well in a game, and you don’t win, but you did better than you should have and you’re proud of yourself, about what you accomplished,” says Nobel Laureate and economist Edward PrescottArticle of Edward Prescott.