It was the “financial incentives” that Bermuda offered that gave the Island a clear advantage over San Diego in the battle as to who would host the America’s Cup.

The California city simply could not compete with Bermuda when it came to “hard cash”.

That explanation was put forward by Joe Terzi, the San Diego Tourism Authority CEO, when he spoke to the U-T San Diego newspaper on Saturday. Mr Terzi said San Diego had not offered enough to lure billionare Larry Ellison, owner of America’s Cup holder Oracle Team USA, before he reached his decision.

“The America’s Cup rep said you guys worked hard, we would have liked to have seen a more aggressive bid financially,” Mr Terzi said. “But when it came down to it, Bermuda was the destination Larry needed to choose.”

Mr Terzi said Cup officials had asked San Diego for more than 17,000 free or discounted hotel room nights worth NZ$3.5 million (about $2.8 million), to lure corporate sponsors in the lead-up to the event.

That request was declined by the city’s tourism and marketing authority.

Ironically, Bermuda’s lack of hotels was viewed as an advantage for San Diego’s bid, as well as the Island’s less consistent weather and smaller commercial appeal, pointed out the newspaper.

“But the biggest factor that’s likely to have sold the British territory is its better location for broadcasters, with races set to be at a friendlier time for European and North American audiences.”

The Bermuda Government has yet to reveal what it offered in terms of financial incentives, if any.

But it is believed that the software company mogul was attracted by Bermuda’s “tax free” status.

While it has been confirmed by several officials that Bermuda will host the America’s Cup in 2017, the official announcement will be made in New York on December 2.