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| SAN FRANCISCO — Twenty years ago, before its failing finances were rescued by the billionaire Larry Ellison and before it won the America’s Cup, the Golden Gate Yacht Club was just a forlorn building at the end of a quarter-mile jetty. To get there, its members had to pass by the exclusive St. Francis Yacht Club, one of the more prestigious in the world. | SAN FRANCISCO — Twenty years ago, before its failing finances were rescued by the billionaire Larry Ellison and before it won the America’s Cup, the Golden Gate Yacht Club was just a forlorn building at the end of a quarter-mile jetty. To get there, its members had to pass by the exclusive St. Francis Yacht Club, one of the more prestigious in the world. |
| The Golden Gate and the St. Francis shared the best views of the bay — the Golden Gate Bridge to the left, Alcatraz to the right, the city perched on hills behind. But in the cloistered world of yacht clubs, they could not have been more different. | The Golden Gate and the St. Francis shared the best views of the bay — the Golden Gate Bridge to the left, Alcatraz to the right, the city perched on hills behind. But in the cloistered world of yacht clubs, they could not have been more different. |
| The 200 or so Golden Gate members had a key to the building, which meant that its bar was subject to the honor system, but never to last call. | The 200 or so Golden Gate members had a key to the building, which meant that its bar was subject to the honor system, but never to last call. |
| “So you left Union Street with a beautiful lady,” said Bill O’Keeffe, a member since 1972. “And you’d say, ‘How’d you like to come down to my yacht club?’ ” | “So you left Union Street with a beautiful lady,” said Bill O’Keeffe, a member since 1972. “And you’d say, ‘How’d you like to come down to my yacht club?’ ” |
| Dues were $25 a month. Dancing atop the bar was encouraged. Friday night parties sometimes ended with swims in the boat marina, though not always in swim attire — or attire of any kind. Members occasionally lobbed water balloons or shot water guns at boats entering or exiting the marina, especially those flying the colors of the St. Francis. | Dues were $25 a month. Dancing atop the bar was encouraged. Friday night parties sometimes ended with swims in the boat marina, though not always in swim attire — or attire of any kind. Members occasionally lobbed water balloons or shot water guns at boats entering or exiting the marina, especially those flying the colors of the St. Francis. |
| “It had prestige,” O’Keeffe said of the neighboring club. “We actually shunned prestige.” | “It had prestige,” O’Keeffe said of the neighboring club. “We actually shunned prestige.” |
| That became hard to do when Ellison walked away from negotiations with the St. Francis, where he was a member, to sponsor his quest to win the America’s Cup in 2003. Ellison soon accepted a desperate plea from Norbert Bajurin, the owner of a radiator-repair shop in San Francisco, to join the nearly bankrupt Golden Gate next door. | That became hard to do when Ellison walked away from negotiations with the St. Francis, where he was a member, to sponsor his quest to win the America’s Cup in 2003. Ellison soon accepted a desperate plea from Norbert Bajurin, the owner of a radiator-repair shop in San Francisco, to join the nearly bankrupt Golden Gate next door. |
| And when that combination won yachting’s biggest prize in Valencia, Spain, in 2010, on Ellison’s third try, the Golden Gate Yacht Club became the sixth — and unlikeliest — winner in the trophy’s 160-year history. | And when that combination won yachting’s biggest prize in Valencia, Spain, in 2010, on Ellison’s third try, the Golden Gate Yacht Club became the sixth — and unlikeliest — winner in the trophy’s 160-year history. |
| Golden Gate 1, St. Francis 0. | Golden Gate 1, St. Francis 0. |
| That day in Spain, Ellison stood behind Bajurin and put his hand on his shoulder as they awaited the winner’s news conference. | That day in Spain, Ellison stood behind Bajurin and put his hand on his shoulder as they awaited the winner’s news conference. |
| “I could feel his beard on me, and I could feel his breath,” Bajurin said. “And he said, ‘I wonder what the St. Francis is thinking now.’ ” | “I could feel his beard on me, and I could feel his breath,” Bajurin said. “And he said, ‘I wonder what the St. Francis is thinking now.’ ” |
| When the 34th America’s Cup begins on Saturday, pitting Ellison’s Oracle Team USA against Emirates Team New Zealand in a best-of-17 series that could last two weeks, the Golden Gate and the St. Francis will sit, side by side, sharing the best views of the races on San Francisco Bay. | When the 34th America’s Cup begins on Saturday, pitting Ellison’s Oracle Team USA against Emirates Team New Zealand in a best-of-17 series that could last two weeks, the Golden Gate and the St. Francis will sit, side by side, sharing the best views of the races on San Francisco Bay. |
| In the coming weeks, if the trophy is successfully defended, it will be carried to a party at the little clubhouse at the end of the spit. But first, it will pass the large yacht-club home of corporate titans and Olympic sailors, past a club with an esteemed history of winning every major sailing race in the world, except the biggest one. | In the coming weeks, if the trophy is successfully defended, it will be carried to a party at the little clubhouse at the end of the spit. But first, it will pass the large yacht-club home of corporate titans and Olympic sailors, past a club with an esteemed history of winning every major sailing race in the world, except the biggest one. |
| Again. | Again. |
| Let’s Make a Deal | Let’s Make a Deal |
| The St. Francis had attempted to win the America’s Cup in 2000. The member Paul Cayard skippered AmericaOne into the finals of the Louis Vuitton Cup, a sort of semifinal to determine who would challenge the defending champion in the America’s Cup. AmericaOne lost. | The St. Francis had attempted to win the America’s Cup in 2000. The member Paul Cayard skippered AmericaOne into the finals of the Louis Vuitton Cup, a sort of semifinal to determine who would challenge the defending champion in the America’s Cup. AmericaOne lost. |
| By then, Ellison, the founder and chief executive of Oracle, had built his résumé with major sailing victories for a team that he financed and sometimes skippered. He bought the assets from the AmericaOne team with the intention of creating the top challenger from the United States for the next America’s Cup, in 2003. | By then, Ellison, the founder and chief executive of Oracle, had built his résumé with major sailing victories for a team that he financed and sometimes skippered. He bought the assets from the AmericaOne team with the intention of creating the top challenger from the United States for the next America’s Cup, in 2003. |
| It was presumed that the St. Francis, which Ellison had joined several years earlier, would shepherd his quest. Negotiations were sticky. The two sides were unwilling to cede too much control. | It was presumed that the St. Francis, which Ellison had joined several years earlier, would shepherd his quest. Negotiations were sticky. The two sides were unwilling to cede too much control. |
| The club wanted to name the boat. It refused to guarantee that Ellison, should his team win the America’s Cup, would be chosen to defend it if and when the race went to San Francisco Bay. It rejected a request to form a board within the St. Francis board of directors that would exclusively handle matters related to the America’s Cup. | The club wanted to name the boat. It refused to guarantee that Ellison, should his team win the America’s Cup, would be chosen to defend it if and when the race went to San Francisco Bay. It rejected a request to form a board within the St. Francis board of directors that would exclusively handle matters related to the America’s Cup. |
| Bajurin and other members of the Golden Gate Yacht Club heard whispers and read news media accounts of the failing negotiations. The club was $453,000 in debt. | Bajurin and other members of the Golden Gate Yacht Club heard whispers and read news media accounts of the failing negotiations. The club was $453,000 in debt. |
| “Everybody was having a good time, and no one was paying attention to the books,” Bajurin said. | “Everybody was having a good time, and no one was paying attention to the books,” Bajurin said. |
| Keys were collected. Booze was locked up. Food service was eliminated. Desperate for cash, the club talked of adding a vending machine, because it might bring in $300 a month. Members who had not quit were asked to advance money to save the club. Some paid. More quit. | Keys were collected. Booze was locked up. Food service was eliminated. Desperate for cash, the club talked of adding a vending machine, because it might bring in $300 a month. Members who had not quit were asked to advance money to save the club. Some paid. More quit. |
| Bajurin and other club officers debated whether to place the Golden Gate in bankruptcy or to shutter it entirely. With nothing to lose, Bajurin tried to reach Ellison at Oracle. He never heard back. He found an e-mail address for Bill Erkelens, who led Ellison’s sailing team. | Bajurin and other club officers debated whether to place the Golden Gate in bankruptcy or to shutter it entirely. With nothing to lose, Bajurin tried to reach Ellison at Oracle. He never heard back. He found an e-mail address for Bill Erkelens, who led Ellison’s sailing team. |
| “Golden Gate Yacht Club Available,” he wrote in the subject line. “Our club may be your answer.” | “Golden Gate Yacht Club Available,” he wrote in the subject line. “Our club may be your answer.” |
| The response came the next day. Erkelens wanted to talk. | The response came the next day. Erkelens wanted to talk. |
| “I remember looking at that e-mail for almost two hours, thinking you’ve got to be kidding me,” Bajurin said. “They responded!” | “I remember looking at that e-mail for almost two hours, thinking you’ve got to be kidding me,” Bajurin said. “They responded!” |
| A deal was signed fewer than three months later, in early 2001. For Ellison, it gave him a club willing to acquiesce to his requests, a club with as good of a location as that of the St. Francis. | A deal was signed fewer than three months later, in early 2001. For Ellison, it gave him a club willing to acquiesce to his requests, a club with as good of a location as that of the St. Francis. |
| “We were very flexible, and very broke,” said Ron Matlin, the Golden Gate’s longtime accountant. | “We were very flexible, and very broke,” said Ron Matlin, the Golden Gate’s longtime accountant. |
| The deal saved the Golden Gate. Ellison and his team of 100 immediately joined the yacht club — each paying the $1,000 membership fee and a year’s worth of $90-per-month dues. Bills were slowly paid. Debts were eased. Membership grew again. The clubhouse was spruced up. | The deal saved the Golden Gate. Ellison and his team of 100 immediately joined the yacht club — each paying the $1,000 membership fee and a year’s worth of $90-per-month dues. Bills were slowly paid. Debts were eased. Membership grew again. The clubhouse was spruced up. |
| “If we hadn’t done the Oracle deal, the club wouldn’t be here,” Matlin said. “No question.” | “If we hadn’t done the Oracle deal, the club wouldn’t be here,” Matlin said. “No question.” |
| Ellison is one of the world’s richest people. Bajurin is a Croatian immigrant, more of a fisher than a sailor, a former police officer who took over his father’s radiator shop and now has nine employees. He drives a Nissan truck. | Ellison is one of the world’s richest people. Bajurin is a Croatian immigrant, more of a fisher than a sailor, a former police officer who took over his father’s radiator shop and now has nine employees. He drives a Nissan truck. |
| Their unusual pairing spawned a book — “The Billionaire and the Mechanic,” by the San Francisco Chronicle reporter Julian Guthrie — published this year. And it brought the America’s Cup to San Francisco Bay for the first time, right in front of two clubs that share one spit. | Their unusual pairing spawned a book — “The Billionaire and the Mechanic,” by the San Francisco Chronicle reporter Julian Guthrie — published this year. And it brought the America’s Cup to San Francisco Bay for the first time, right in front of two clubs that share one spit. |
| Worlds Apart | Worlds Apart |
| Both clubs have been decked out for a summer’s worth of warm-up races. The narrow parking lot between them holds temporary bleachers facing the bay, backing to the boat-filled marina they share. | Both clubs have been decked out for a summer’s worth of warm-up races. The narrow parking lot between them holds temporary bleachers facing the bay, backing to the boat-filled marina they share. |
| Visitors might not ascertain which club is hosting the event, even if they were allowed inside the ultra-private St. Francis. Past the signs instructing guests to stay outside until escorted in by a member and past the security desk, a large model of Ellison’s 72-foot America’s Cup catamaran sits in the lobby. There are viewing parties during races. The club’s Web site offers “America’s Cup Information” just above the pronouncement that it was recently named the No. 1 yacht club in the country. | Visitors might not ascertain which club is hosting the event, even if they were allowed inside the ultra-private St. Francis. Past the signs instructing guests to stay outside until escorted in by a member and past the security desk, a large model of Ellison’s 72-foot America’s Cup catamaran sits in the lobby. There are viewing parties during races. The club’s Web site offers “America’s Cup Information” just above the pronouncement that it was recently named the No. 1 yacht club in the country. |
| If there is America’s Cup envy, the signs are not obvious. | If there is America’s Cup envy, the signs are not obvious. |
| “No one says it,” Brian Madden, a rare member of both clubs, said of the St. Francis. “But you know it’s there. You can sense it.” | “No one says it,” Brian Madden, a rare member of both clubs, said of the St. Francis. “But you know it’s there. You can sense it.” |
| He sometimes wears a Golden Gate Yacht Club sweater into the St. Francis, receiving some playful jeers. “It’s like winning the Super Bowl,” Madden said. “We could have had it, but we just gave it to the other team.” | He sometimes wears a Golden Gate Yacht Club sweater into the St. Francis, receiving some playful jeers. “It’s like winning the Super Bowl,” Madden said. “We could have had it, but we just gave it to the other team.” |
| Members of both clubs said that there was no hostility between the two. Rivalries are usually between equals, and no one believes that the St. Francis and the Golden Gate have ever been the same thing, beyond location and an affection for open water. | Members of both clubs said that there was no hostility between the two. Rivalries are usually between equals, and no one believes that the St. Francis and the Golden Gate have ever been the same thing, beyond location and an affection for open water. |
| The St. Francis has roughly 2,300 members, and initiation fees — kept private — are said to be as high as $30,000, less for younger prospects as it tries to attract a more youthful crowd. It is not unlike a fancy golf or tennis country club, with a marina and bay view instead of courts and grass. (And, a few hours away by boat on the San Joaquin River, is club-owned Tinsley Island, with full facilities and space for 100 boats.) | The St. Francis has roughly 2,300 members, and initiation fees — kept private — are said to be as high as $30,000, less for younger prospects as it tries to attract a more youthful crowd. It is not unlike a fancy golf or tennis country club, with a marina and bay view instead of courts and grass. (And, a few hours away by boat on the San Joaquin River, is club-owned Tinsley Island, with full facilities and space for 100 boats.) |
| Cellphones are not permitted. Neither are hats. It has a full dining room — jackets required — and its kitchen might be larger than the entire 7,000-square feet of the Golden Gate. There is a relatively casual bar and grill on the lower level, and a sprawling mix of rooms — a chart room built like an estate library, meeting rooms paneled in dark wood, walls lined with trophies and boat models and historic photographs and paintings. There is a gift shop. The lower level has locker rooms, a workout room and a sauna. There are set hours each day, and the schedule is flush with regattas, dinners, auctions and wine tastings. | Cellphones are not permitted. Neither are hats. It has a full dining room — jackets required — and its kitchen might be larger than the entire 7,000-square feet of the Golden Gate. There is a relatively casual bar and grill on the lower level, and a sprawling mix of rooms — a chart room built like an estate library, meeting rooms paneled in dark wood, walls lined with trophies and boat models and historic photographs and paintings. There is a gift shop. The lower level has locker rooms, a workout room and a sauna. There are set hours each day, and the schedule is flush with regattas, dinners, auctions and wine tastings. |
| In the fiscal year ending Nov. 30, 2011, it had revenue of $12.9 million, according to Internal Revenue Service filings. | In the fiscal year ending Nov. 30, 2011, it had revenue of $12.9 million, according to Internal Revenue Service filings. |
| The Golden Gate, by comparison, reported revenue of about $662,000 in 2011. Membership has grown to about 425. Initiation fees are about $2,500, and monthly dues are $125. | The Golden Gate, by comparison, reported revenue of about $662,000 in 2011. Membership has grown to about 425. Initiation fees are about $2,500, and monthly dues are $125. |
| “They’re 10 times the size,” the longtime Golden Gate member Ned Barrett said of the St. Francis. “And have 10 times the resources.” | “They’re 10 times the size,” the longtime Golden Gate member Ned Barrett said of the St. Francis. “And have 10 times the resources.” |
| Amid its newfound prestige — no longer shunned, but sheepishly noted — the Golden Gate tries to cling to its blue-collar sensibilities. Gone, perhaps, are the days when a member’s birthday would be greeted by a woman jumping from a cake — one a few years ago then moved to the roof to promote and sell her various talents — but members hope to retain its sleepy, everybody-knows-your-name personality. Hours of operation are flexible. The general manager Bob Mulhern will close the doors at night if there is no one around. Some days, only a few members stop by. | Amid its newfound prestige — no longer shunned, but sheepishly noted — the Golden Gate tries to cling to its blue-collar sensibilities. Gone, perhaps, are the days when a member’s birthday would be greeted by a woman jumping from a cake — one a few years ago then moved to the roof to promote and sell her various talents — but members hope to retain its sleepy, everybody-knows-your-name personality. Hours of operation are flexible. The general manager Bob Mulhern will close the doors at night if there is no one around. Some days, only a few members stop by. |
| The building was closed for several months this year and renovated in time for the America’s Cup crowds, with new floors, furniture and an elevator, mostly. Still, jeans are allowed. So are cellphones and hats. And while dancing atop the bar occurs with less frequency, it is still welcomed. | The building was closed for several months this year and renovated in time for the America’s Cup crowds, with new floors, furniture and an elevator, mostly. Still, jeans are allowed. So are cellphones and hats. And while dancing atop the bar occurs with less frequency, it is still welcomed. |
| “At the St. Francis, you would be put on probation for six months,” said John Yelda, a well-known charter-boat captain and sailboat racer who is a member of both clubs. | “At the St. Francis, you would be put on probation for six months,” said John Yelda, a well-known charter-boat captain and sailboat racer who is a member of both clubs. |
| Yelda keeps his boats in the marina behind the clubs. (One way to tell club members apart? Golden Gate members are the ones working on their boats; St. Francis members usually hire someone else, several people said, only half joking.) His routine often includes an afternoon beer at the Golden Gate and dinner at the St. Francis. | Yelda keeps his boats in the marina behind the clubs. (One way to tell club members apart? Golden Gate members are the ones working on their boats; St. Francis members usually hire someone else, several people said, only half joking.) His routine often includes an afternoon beer at the Golden Gate and dinner at the St. Francis. |
| “We have two yacht clubs, side by side,” Yelda said. “This is a blessing.” | “We have two yacht clubs, side by side,” Yelda said. “This is a blessing.” |
| The difference, to him, is one of taste. | The difference, to him, is one of taste. |
| “The Golden Gate is like a little boutique hotel,” Yelda said. “It’s very friendly, small, intimate. Everybody knows you. St. Francis Yacht Club is more like a Four Seasons hotel. It has a lot more members, and has exquisite service. You don’t know everyone there, but the staff knows you.” | “The Golden Gate is like a little boutique hotel,” Yelda said. “It’s very friendly, small, intimate. Everybody knows you. St. Francis Yacht Club is more like a Four Seasons hotel. It has a lot more members, and has exquisite service. You don’t know everyone there, but the staff knows you.” |
| Madden, a 45-year-old electrician, joined the Golden Gate 20 years ago, when he was single and had a hand-me-down boat he bought for $4,500. He joined the St. Francis 10 years later, where he subsequently married, where his children celebrate birthdays, and where the family eats formal holiday meals at Easter, Mother’s Day, Thanksgiving and Christmas. | Madden, a 45-year-old electrician, joined the Golden Gate 20 years ago, when he was single and had a hand-me-down boat he bought for $4,500. He joined the St. Francis 10 years later, where he subsequently married, where his children celebrate birthdays, and where the family eats formal holiday meals at Easter, Mother’s Day, Thanksgiving and Christmas. |
| People with a lot of money, Madden said, merely want the nicest things. That goes for houses, cars and yacht clubs. | People with a lot of money, Madden said, merely want the nicest things. That goes for houses, cars and yacht clubs. |
| “If you have the money, you’re not going to the Golden Gate,” he said. “You’re going to run to the St. Francis.” | “If you have the money, you’re not going to the Golden Gate,” he said. “You’re going to run to the St. Francis.” |
| But not everyone. David Anderman is a weekend sailor and the general manager for Lucasfilm. He has been credited with negotiating the company’s $4 billion acquisition by Disney in 2012. Married with two daughters, ages 9 and 11, Anderman looked carefully at both clubs a couple of years ago before choosing the Golden Gate. | But not everyone. David Anderman is a weekend sailor and the general manager for Lucasfilm. He has been credited with negotiating the company’s $4 billion acquisition by Disney in 2012. Married with two daughters, ages 9 and 11, Anderman looked carefully at both clubs a couple of years ago before choosing the Golden Gate. |
| “Really, it’s all about where you want to be and who you want to be with,” he said. | “Really, it’s all about where you want to be and who you want to be with,” he said. |
| His family sat at a table nearby, overlooking the sailboats racing on the bay. Out the corner window, they could see the Golden Gate Bridge in the distance and the St. Francis Yacht Club next door. | His family sat at a table nearby, overlooking the sailboats racing on the bay. Out the corner window, they could see the Golden Gate Bridge in the distance and the St. Francis Yacht Club next door. |
| “It doesn’t hurt that it’s the home of the America’s Cup,” Anderman said. “I have to say, half the time you come out, they’ve got the America’s Cup trophy sitting right there.” | “It doesn’t hurt that it’s the home of the America’s Cup,” Anderman said. “I have to say, half the time you come out, they’ve got the America’s Cup trophy sitting right there.” |
| He scrolled through his phone and showed photographs he had taken with the three-foot trophy, made of sterling silver in 1848. | He scrolled through his phone and showed photographs he had taken with the three-foot trophy, made of sterling silver in 1848. |
| Bajurin stood near the bar, grinning with pride. The day’s races were soon over, but the day’s 120 members and guests were in no hurry to leave. | Bajurin stood near the bar, grinning with pride. The day’s races were soon over, but the day’s 120 members and guests were in no hurry to leave. |
| “Look at these guys,” he said. “They’re having the time of their lives. They’ve got the America’s Cup.” | “Look at these guys,” he said. “They’re having the time of their lives. They’ve got the America’s Cup.” |
| His smiling eyes filled with tears. | His smiling eyes filled with tears. |
| “Right now, we’re running with it,” Bajurin said. “We’re having a good time. If we lose, yeah, we’ll be sad. But we’ll always be part of history.” | “Right now, we’re running with it,” Bajurin said. “We’re having a good time. If we lose, yeah, we’ll be sad. But we’ll always be part of history.” |