The Royal New Zealand Yacht Squadron’s estimated trading loss for the last financial year has risen to almost $2 million as the club hunts for savings in a bid to “achieve long term sustainability”.

Auckland’s blue ribbon sailing club - known for its links to the America’s Cup - earlier this year reported it was looking at a between $1.4m and $1.6m loss.

It blamed the loss on the impacts of the Covid-19 pandemic and stormy weather in early 2023 and immediately started a “Reset” journey to turns its finances around.

In an update to members yesterday, the club said its five-month Reset journey had made “considerable progress” but that the estimated loss had also climbed.

“The financial loss for this year will be closer to $2m. This is higher than originally forecast due to the review and reset of our Fixed Asset Register,” Commodore Andrew Aitken wrote in the newsletter.

Much of the extra projected loss was due to asset write-offs, Aitken said.

The Royal New Zealand Yacht Squadron building at Westhaven. Photo/Kellie Blizard

He said the club’s Reset Committee wrote off 247 assets no longer in the club’s possession as well as assets with a value below $2000 - totalling $467,489.

It also wrote down the value of boats owned by the club but which it is selling - including Elliott Fleet, Pembles, the Etchells and Phantoms - by a value of $240,199.

Aitken said other costs contributing to the loss included costs associated with training material, IT service losses of $33,480, sailing event losses worth $90,000 and a $110,000 loss designated as “members subscriptions and debtors adjustment”.

The next America's Cup regatta will be sailed in Barcelona far from New Zealand, despite Team NZ having the right to hold it locally. Photo / Maria Muna

Media outlet Business Desk reported in March that unnamed sources suggested the club had also suffered membership losses because of its decision last year to allow the next America’s Cup to be sailed in Barcelona rather than Auckland.

Emirates Team NZ won the last America’s Cup in Auckland in 2021 but then argued it was not financially viable for the 2024 event to be held in New Zealand.

BusinessDesk said high-profile RNZYS members to have resigned over the Barcelona decision included original backer of NZ’s bids for the cup, Sir Michael Fay, Auckland KC Jim Farmer, Alan Sefton and Andrew Johns, who was the legal adviser for Fay’s three NZ bids.

Aitken, meanwhile, raised the possibility of a number of changes in members’ services in the newsletter update.

“Many of our members love the experience of dining or enjoying refreshments in our Members Bar,” he said.

However, the bar hasn’t broken even for a “number of years”, Aitken said.

Kiwis won't be able to witness the next America's Cup up close. Photo / America's Cup

To do so it will need to make an extra $700 in sales each day it is open.

As a result the club is going to survey members on what services they want and in the meantime has reduced the bar’s opening hours during winter from seven days a week to six.

The club is also consulting members on its club racing programme, Aitken said.

Aitken did not wish to comment when contacted by the Herald.

But he concluded his newsletter update to members by saying significant work is under way to “ensure that as we move forward, a sustainable business model is in place so that the club breaks even”.

“The Reset Committee are of the view that it will take a minimum of two years to reach this breakeven position, given the considerable amount of change that is required to do so,” he said.

“While breaking even before depreciation for the 2023/24 year is desirable, we recognise this is a substantial challenge with current forecasts showing significant work is still required to deliver this.”