Big boats, big money vie for America's Cup

VALENCIA, Spain - In 1851 a schooner called “America” rose to the occasion and crushed all competitors in a European regatta, bringing the cup trophy back to the New York Yacht Club. It was then that the America’s Cup was born.

From 1851 to 1980 the Americans owned the cup, legendary helmsmen Dennis Conner and the ever-eccentric Ted Turner both possessing the trophy. But now, another team sits at the top and the entire world is chasing this sport of billionaires.

“It is so intense,” said Seahorse Magazine Editor Andrew Hurst. "The pressure on every person, on the boat, is huge. Seventeen athletes on deck. Racing a 26-ton, state-of-the-art, and carbon fiber sailboat. They race a 13-mile course one on one, towards the finish line. In a sport that has no second place.

There are twelve international teams competing in the Louis Vuitton America’s Cup, going head-to-head a mile off the coast for one of the most coveted prizes in sports.

“The America’s Cup stands as one of the pinnacle events in the entirety of sport. It is the oldest sporting trophy in the word," said Dyer Jones, America’s Cup Regatta Director.

It is at one exhilarating, beautiful, dangerous and highly technical. The 78-foot boats take 30,000 man-hours to craft and have changed dramatically. Between marketing, salaries, boat construction, R&D, the tab reaches a stunning $150 million.

“A main sail for one of these costs $100,000,” said Dyer. "Every jib costs $30,000 to $40,000 and those sails, their lifetimes are measured in hours. Not days, not weeks, not months, hours."

The rules of engagement have remained much the same since the race started in the 19^th century.

“What other sport is governed by a document that was written 150 years ago by a bunch of old codgers back in New York City, that is modeled after the old duel days? You pick the weapon; I’ll pick the date. You turn first, I’ll shoot second,” said Peter Isler, BMW Oracle navigator.

“One of the duelers who holds all the cards but being the honorable dueler they say, ‘Well you can come and try and race for this big silver trophy, but to do so you have to on my terms,’” said Isler.

The terms: whichever boat wins the cup picks the next race venue. Challengers then enter the game and engage in a round robin elimination process, until one boat remains to take on the reigning champion. The most recent victor, a landlocked Swiss team, Alinghi. Dramatically capturing the cup in New Zealand in March 2003, the team brought the trophy back to Europe for the first time since the inaugural race.

MORE FROM CNBC: ON THE MONEY

CNBC: On the Money Section Front

Beware the awesome power of the fanboy 'Family Guy' sued over song satire NASCAR takes a Silver Bullet   Take your cell to the ball game Investing in strip clubs … through stocks Will Earnhardt fans race to buy Amp? Kanye clobbers 50 Cent Knicks harassment trial gets even tawdrier Michael Douglas is back as Gekko Party like Hugh Hefner in Las Vegas CNBC: On the Money Section Front   Add CNBC: On the Money headlines to your news reader: