The New Zealand government announced a multi-million-dollar "bridging investment" in the country's America's Cup team on Monday, designed to keep it afloat after last month's devastating loss in San Francisco.

Emirates Team New Zealand lost yachting's top prize 8-9 ­after holding a seemingly unassailable 8-1 lead over ­Oracle Team USA in what has been described as one of the biggest chokes in sporting history.

Since then, syndicate officials have warned it will be difficult to keep the team together as experts field big-money ­offers from rivals preparing for the next regatta, likely to be held in 2017.

Economic Development Minister Steven Joyce said the NZ$5.0 million ($4.2 million) ensured Team New Zealand could retain key personnel until at least May, when they will have decided if they are going to challenge again.

"Team New Zealand has now commenced planning for the next challenge," he said.

"However, it will not be possible for them to finalize their involvement until such time as they know key elements of the regatta, including where and when it will be held."

Joyce said the government would look at providing further funding next year.

It contributed NZ$36 million to Team New Zealand's campaign in San Francisco, prompting fierce debate over whether taxpayers should subsidise an entry into an event sometimes regarded as a ­billionaires' playground.

But Joyce said the America's Cup provided global exposure to New Zealand's marine and technology sectors and had positive spinoffs for the economy.

"There is no doubt the 2013 America's Cup in San Francisco was hugely beneficial to New Zealand businesses," Joyce said. "A thorough evaluation of the benefits to the New Zealand economy of the government's $36 million investment in the 2013 America's Cup is under way and is expected in March 2014."

New Zealand has won the America's Cup twice, in 1995 and 2000, and staged the ­regatta in 2000 and 2003.

Australian winemaker Bob Oatley's Hamilton Island Yacht Club has been formally announced as the Challenger of Record to Oracle Team USA for the next America's Cup.

Being the Challenger of ­Record means Hamilton ­Island has the right to work with cup holders Golden Gate Yacht Club and set the laws of the next regatta, while representing all other challengers in dealings with Oracle Team USA.

Agencies - Global Times