Sources say San Francisco has America's Cup.

Two people close to the America’s Cup negotiations
have confirmed that San Francisco will be the host
of the yacht race in 2013. (Getty Images file photo)

San Francisco has won its bid for the America’s Cup, sources say.

Two people close to the America’s Cup negotiations have confirmed that San Francisco will be the host of the yacht race in 2013. The City has toiled for months over a bid that would lure the sporting event to the San Francisco Bay.

On Wednesday night, mayoral spokesman Tony Winnicker said the mayor’s office has not been “formally notified” it had won the bid, but that the mayor’s team has “had very positive discussions in recent days and we continue to be optimistic and confident in our bid.”

In recent weeks the team was also in discussion with Rhode Island about potentially hosting the race, but ultimately Rhode Island officials could not present a final offer in time for the race organizer’s self-imposed Dec. 31 deadline.

The decision of where the next America’s Cup would take place was up to billionaire Larry Ellison and his yacht racing team, BMW-Oracle Racing, who won the cup in a contest in Spain in February. The winners of the cup are allowed to determine the next location.

The Cup is considered the oldest trophy in modern sports. The silver cup was first raced for in the Isle of Wight in 1851 and was won by the New York Yacht Club’s yacht America, which named the trophy after itself and brought it home. That club held tight to that club for the next 132 years, beating every other sailing team that challenged them to a race for it. Their firm grasp on the cup did not come loose until 1983, when the Australians finally won it. But they soon lost it to the San Diego Yacht Club, and they to the Royal New Zealand Yacht Squadron.

After winning the cup in February Ellison announced he would like to bring the race to San Francisco Bay, which forms a natural amphitheater for viewers. Almost every other race has been conducted far off shore, forcing fans to watch on large screens or with binoculars from shore.

But before the race could come to the Bay Area, San Francisco had to offer Ellison with millions of dollars of city services to support the race, as well as long-term development rights at the Port.

The deal meted out will require Ellison’s team to invest upfront into Piers 30-32, just south of the Bay Bridge. In return, The City will provide free rent and longterm development rights on that and other nearby property for decades.

San Francisco will also invest millions in city services into the race, but city officials have said it is worth it in exchange to the $1 billion or more in tourist dollars they expect to come to the region during the race.