Prime Minister Jacinda Ardern says the Government put its best foot forward in its offer to Team New Zealand - and wants Kiwis to tell the team how they feel about the prospect of the event moving overseas.

The comments come after Team New Zealand officially rejected the Government's $99 million bid to host the next America's Cup in Auckland.

Ardern, speaking from Fieldays today, said: "The Government, on behalf of taxpayers, went into those negotiations in good faith, in the hope of being able to retain the competition here in New Zealand. We wanted to have that home crowd, and for every Cup where we've held it, we've hosted.

"We have to make sure that not only we put our best foot forward and make every endeavour to hold and host the race here, we also needed to identify the point where it wouldn't be value for money for New Zealanders.

"The ball is in their court. We believe we've made a decent offer, and now it's for them to resolve where the Cup will be raced."

Economic Development Minister Stuart Nash said it was "really disappointing" to have not agreed on a deal that saw the races hosted here.

"But the commercial reality of America's Cup in 2021 is that this is multi-million dollar commercial proposition as well as a yacht race.

"Not all is lost now but Team NZ are now able to negotiate with other parties. If no one can offer them what we have offered, then they come back here and if something has to go back to Cabinet, it will."

Ardern urged Kiwis to tell Team NZ how they felt.

"Make your voice heard. There are still negotiations being had, and if you feel really strongly about this in the same we did, let the team know.

"I, like every Kiwi, want to see that race hosted here. You can't replace a home crowd, and you cannot replace the huge strength of feeling that New Zealanders bring to that race. That's what makes it so exciting."

Asked if the Government's bid could go higher, Ardern said there comes a point when the economic benefit no longer stacked up.

"At some point, we have to say we can't justify investment beyond that for the taxpayer.

"We have to make a call about where that line exists. I could not hand on heart stand here in front of you and say that it would have been good value for money for New Zealanders to go beyond where we have. So I wouldn't do it."

She said she wouldn't go as far as saying that Team NZ "didn't give it a good run with us".

"The team themselves, I do think, want to race here. I do think they want a home crowd. That's the team. But of course there are other commercial imperatives that play."

Nash said Kiwis will still support Team NZ.

"It's just a shame they won't be able to go down to the viaduct."

Auckland Mayor Phil Goff told Heather du Plessis-Allan that Team New Zealand wanted twice as much as the $100 million offer that came from council and Government. 

"I can't go out to the ratepayers of Auckland in these Covid-19-stretched times and say we should be putting lots of money in to a hosting fee, we simply can't do that.

"But it is disappointing, because in order to make provision for the America's Cup earlier this year, we did something like $113 million worth of infrastructure work." 

He said that while that infrastructure is still there and can be used, the hope had been they would stay here to contest the next Cup.

Goff said that the Viaduct Events Centre, which has been leased to Team New Zealand at a heavily discounted rate, will go commercial when the lease ends in March. 

text by Derek Cheng, NZ Herald