The contract, signed by mayoress of Valencia, Rita Barber, and the Catalan Autonomous Government lasted only five days.

Without clause 4.5, Valencian administrators would have been committed to pay nine million Euros for a qualifying regata in July and October. The mayoress and the representative of the Catalan Autonomous Government had defended, the cost of almost a million Euros per day in spite of the economic crisis.

Against this background, the advertising campaign of the Valencian Agency of Tourism for 2009 has preferred not to complicate things. Advertising campaigns for Valencia have chosen to ignore the thorny subject of the Americas Cup and to bet on the Formula 1 event held in the city. In addition to the well-run, spectator rich, media savvy, global sport of F1, the City will promote the Arts and Sciences, landscapes, sun and the beach.

Alinghi, the defender, showed that the protocol and rules governing the 33rd version of the cup are flexible by responding to criticism of the last published protocol.

The teams present agreed a Protocol amendment which will loosen the restriction on designers moving between teams. The group appointed two additional members of the Arbitration Panel: David Kellett (AUS), ISAF Vice-President, and Peter Leaver (GBR), a UK barrister since 1967 and Chairman of the Court of Arbitration for Sport, will join Henry Peter (SUI), Luis Maria Cazorla (ESP) and Graham McKenzie (NZL). The 19 competitors also named David Pedrick (USA) Technical Director for the 33rd America’s Cup.

Pedrick, involved in the America’s Cup since 1974, will be Chairman of the Measurement Committee – made up of no less than two additional members – that ensures compliance with the AC33 rules and any other measurement requirements.

“It is exciting to be engaged in the America’s Cup in this way, to actually be part of helping this new class of yacht be successful for the 33rd America’s Cup. The configuration of the new AC33 class is pretty tightly and simply defined, but there may be some loopholes that we don’t yet understand and will need to be mindful of. The construction is defined in a simpler way than with the ACC class and there may be some structural situations that will need careful monitoring. Because this is a new class and all the interpretations are to be public, the hope is that the dialogue with the competitors will be such that if there is uncertainty they will feel free to ask the questions early.”

The Host City agreement was also discussed along with plans to run the pre-regattas in 2009 and the Match in 2010 in Valencia. Negotiations are moving forward with the Spanish administrations and AC Management is confident of announcing a deal with Valencia in the near future.

The competitors decided that participation in the 2009 pre-regattas on ACC Version 5.0 yachts is to be compulsory for all teams and it is intended that syndicates be allocated bases once they confirm their participation in these races.

The next Competitor Meeting is scheduled for the 31 March in Valencia.

The wording of the statement below makes the maths seem a little strange, (you need to work with 23 as the starting number, not 21).

Aside from the Defender, Alinghi and the Challenger of Record, Desafío Español, a total of 21 teams presented a Notice of Entry and 17 were accepted. Three of the entered teams are pending minor details towards their official registration and have been granted an extension until January 15. Three other teams were denied entry as no further documentation beyond the Notice of Entry was received by the December 15 entry deadline. Carbon Challenge has withdrawn.

Many of the teams have been working together over the past few months at regular Competitor Meetings to amend the 33rd America’s Cup Protocol and to design the new class rule; this process is ongoing and will continue into the New Year with further meetings planned and a publication date for the class rule scheduled for the end of January.

Brad Butterworth, Alinghi team skipper, comments on a very exciting fleet:

“Having 19 teams from 12 countries entered for the 33rd America’s Cup is a clear expression of the huge worldwide interest in the competition. It’s fantastic to see such an international fleet with newcomers such as Russia. It is also significant that all but one of the teams from the previous edition have entered again. We will continue to work together with these challengers to make the 33rd America’s Cup a success, regardless of BMW Oracle’s decision to pursue their legal strategy to eliminate all challengers and force their way into an America’s Cup Match, something they have never achieved on the water.”

So who are the 19 teams? The List for the 33rd America’s Cup teams (in order of entry):

• Alinghi, Société Nautique de Genève (SUI) – Defender 
• Desafío Español, Club Náutico Español de Vela (ESP) – Challenger of Record 
• Shosholoza, Royal Cape Yacht Club (RSA) 
• TeamOrigin, Royal Thames Yacht Club (GBR) 
• Team New Zealand, Royal New Zealand Yacht Squadron (NZL) 
• DCYC, Deutscher Challenger Yacht Club (GER) 
• Green Comm Challenge, Circolo di Vela Gargano (ITA) 
• Ayre Challenge, Real Club Náutico de Dénia (ESP) 
• Victory Challenge, Gamla Stans Yacht Skallskap (SWE) 
• Argo Challenge, Club Nautico Gaeta (ITA) 
• Mascalzone Latino, Reale Yacht Club Canottieri Savoia (ITA) 
• Team French Spirit, Yacht Club de St Tropez (FRA) 
• Luna Rossa, Yacht Club Punta Ala (ITA) 
• Russia Team – Fiona, Yacht Club Seven Feet (RUS) 
• Joe Fly, Società Canottieri Lecco (ITA) 
• K-Challenge, Cercle de la Voile de Paris (FRA) 
• Greek Challenge, N.O.K. Poseidon – Nautical Club of Kalamata (GRC) 
• Dabliu Sail Project (ITA) 
• China Team, Qingdao International Yacht Club (CHN)

The situation then, to everyones frustration, but clearly weighing heavily upon Keith Mills, is that even though the differences between the two parties are tiny. Neither side will move. Not for the sake of the sailing world’s most recognisable media property, not for the sake of those investing in the sport of sailing, not for the fans of the cup and certainly not for each other. 

K-Challenge’s CEO Stéphane Kandler, who was also on the panel said:

The America’s Cup has a huge value and is more and more attractive for sponsors; this could explain the current litigation. What we really need is to support a sustainable model for the teams, but we also want to help new stars to rise in the sport of sailing, and especially in the America’s Cup so that they get known by the general public.

Paul Cayard, who was the only participant to really put forward any ideas for the future said later:

We obviously have to get the pinnacle event of our sport back on the water and unfortunately, logic is not prevailing on those who have the “ball”. So it is clear that, for the long term, we have to get the “ball” out of the hands of self interested individuals and into the hands of someone, or some group, who puts the event first. I think I have heard that somewhere before!

Meanwhile, Alinghi today (Friday) have released a statement claiming that 16 teams have entered the 33rd edition and have agreed a protocol to be released next week. The teams also vowed to push on with the process irrespective of BMW ORACLE’s lawsuit. The statement also included the annoucement of guaranteed racing next year with three America’s Cup Class Version 5.0 regattas confirmed: one in July and another in October organised by AC Management, followed by the Club Náutico Español de Vela annual regatta organised by the Spanish Challenger of Record.

BMW ORACLE has come in for some stiff criticism in recent weeks, particularly from the UK based Team Origin. Both Sir Keith Mills and Olympic Champion and ISAF Sailor of the Year, Ben Ainslie, have accused BMW ORACLE of having a separate agenda from other teams who have sat at the Alinghi table. 

The letter outlines the following points as reasoning for why the American based campaign will not support the current process:

• SNG created a sham yacht club to self deal and write your own rules for AC33, which were immediately condemned by seven yacht clubs as -the worst text in the history of the America’s Cup.
• SNG submitted a secret application to your hand-picked arbitrators to rubber-stamp your sham challenger of record and eliminate GGYC – a serious, independent competitor with the experience and capability to mount a worthy challenge. 
• Before the trial court decision in November 2007, SNG unilaterally cancelled the 2009 America’s Cup and Team New Zealand sued you for it. 
• When we won the November 2007 decision in the trial court, SNG refused to negotiate a mutual consent, multi-challenger America’s Cup in monohulls that would have put the Cup back on track for a 2009 event.

As we’ve said before, if we prevail in court as we expect, as Challenger of Record we will once again seek to reach agreement with you on a traditional multi-challenger regatta with fair rules like those that made AC 32 one of the best, most exciting in history.

The Herald Tribune has run an article about the recent challenger meetings leaving BMW ORACLE out in the cold. Both Larry Ellison and Sir Keith Mills are quoted on the issue:

Ellison maintains that Bertarelli’s attempts to strong-arm the Cup have been motivated by personal dislike for Coutts and competitive concern about the powerhouse team that Coutts and Ellison have assembled. But BMW Oracle has found itself increasingly isolated in recent weeks as Alinghi has pushed forward with planning for a conventional Cup in 2010, inviting would-be challengers to meet in Switzerland and work through the rules in concert.

“I can’t really answer for them; I think there’s a lot of them that are anxious just to get this event going and maybe regardless of the rules,” Coutts said of the participating teams.

But Keith Mills, the head of the British challenger Team Origin, said on Thursday that there had been genuine and significant compromises made. He said he intended to contact Ellison and Coutts directly before the entry deadline of Dec. 15 for the prospective Cup in 2010 to provide them with details of the revised rules, called a protocol, and to urge BMW Oracle to drop its lawsuit and join the competition.

Both Coutts and Ellison said that they would not relent unless Alinghi formally commits to “fair rules” that are identical or very close in spirit to those used for last year’s Cup and do not allow Alinghi to control, among other things, the selection of the majority of race officials.

“We don’t trust Ernesto, and we think we have good reason not to trust him,” Ellison said. “All you have to do is look at the first set of rules and realize he’s been forced to make these compromises because of the lawsuit. He hasn’t willingly made these, and he still has not made enough compromises.”

Mills struck a different tone. “We want to give them every opportunity to be there and frankly so do all the other challengers,” he said of Oracle. “But what isn’t going to happen and what Russell called for is that we send the protocol to Russell for him to write a long critique for what he’d like changed. We’re not going to have one team do that.”

“It’s not going to be exactly what they want, not going to be exactly what anybody wants. It’s not exactly what Alinghi wants, but on balance is it fair? I think it’s fair, and I hope Larry and Russell agree. But if they don’t, they’re big boys, and they can take their chances in court.” Rapprochement is still hardly out of the question, but unlike Alinghi, which is still building its multihull, BMW Oracle’s backup plan is already afloat and casting very long shadows across the Pacific.

In the mean time, the Golden Gate Yacht Club, (GGYC), have submitted their Court of Appeals Reply Brief. The reason for bringing the action, in light of events in recent weeks, seems a bit thin, but the more technical issue in the Deed of Gift, relating to whether or not CNEV is a legitimate yacht club seems to hold up. 

Meanwhile, Grant Simmer from Alinghi has said that the revised protocol, as agreed by the 12 teams that are at the table, will be published after the next meeting, scheduled to be held on the 12th of December.

Dear Russell,

The reasons that induced me to write this open letter stem from the respect I have towards you and your team.

AYRE challenged for the America’s Cup more than a year ago, hoping to take part in a competition that thanks to the excellent organization set up by ACM and the Valencian and Spanish public institutions became a world reference and example of what a global sports competition should aspire to.

The success of the 32nd edition in the summer of 2007 in Valencia surpassed all expectations and was also due to the active participation of all Teams, with BMW Oracle Racing undoubtedly being a clear example. AYRE was born because of the 32nd edition being so successful.

Unfortunately, any judicial procedure in any field causes serious setbacks to the proper development of any activity and in this particular case all teams are suffering from this eternal lawsuit that, without pointing any fingers, looking for reasons or blaming anyone, has paralyzed the 33rd edition of the Cup.

Alinghi has recently decided to get sailing back on track and reactivate the organization. They have gathered all teams that have legally entered and started a process of rebuilding the competition. I truly believe this was the correct procedure because the current situation is greatly detrimental to all involved but also to the image of the America’s Cup.

After three meetings in Geneva, all participating teams have been able to confirm Alinghi’s predisposition to carry out the necessary modifications to the Protocol, the Event and Competition Regulations, as well as the design of the new box-rule, in a completely democratic way. As a result, great advances have been achieved in a short time.

AYRE considers that at this moment we objectively have the evidence that demonstrates the change in situation. Race Officials will be selected from ISAF officials. The Protocol and the Event and Competition Regulations are being modified in a democratic way, open to all registered Challengers.

We believe that going back to an exhaustive 10-point list, most of which have already been addressed, is not the most cordial way to reach an agreement. Nor is it a considerate gesture towards the teams present in the meetings.

We want to believe BMW Oracle Racing wish, as they have repeatedly stated, the return to an open competition, open to all Challengers, as soon as possible.

AYRE thinks that at this moment the only important issue is to break the current deadlock, without any accusations or analysis, without declaring winners or losers in a dispute that has hurt all parts equally.

The only important issue is to remedy the reasons that caused BOR’s action, within the democratic framework Alinghi has put in place with all the teams participating in the 33rd America’s Cup. A DoG Match will irreversibly damage the possibility of having a multi-challenger edition in the near future.

As a challenger that represents the prestigious Yacht Club of Denia, one of Valencia’s and Spain’s most important yacht clubs, we think that the effort and patience shown by the Valencian and Spanish public institutions should not be wasted.

The deadline for inscription in the 33rd America’s Cup is on December the 15th. After that date, no team will be able to join. AYRE thinks that BMW Oracle Racing’s presence is essential and its absence will strongly weaken the competition. We also think that BOR has the right to participate, as long as it’s done before the deadline and within the formal framework.

Let this friendly letter be a demonstration of our admiration towards a team that through its perseverance and capacity has demonstrated that, despite suffering sports setbacks, because of its spirit of fair competition it has been able to come back and compete.

Dear Russell, the America´s Cup needs the three-time winner of the world’s oldest and most prestigious sports event, and probably the world’s best sailor, to be part of it, adding to its prestige.

Sincerely,
Pedro Perelló
CEO, AYRE CHALLENGE

We’ll let you know if BMW ORACLE respond in such a public manner.

The Golden Gate Yacht Club and their spokesman Tom Ehman have issued statements after the meeting of challengers last week. There was a slight change of tone, in the statement which included:

“For example, we applaud their decision to have the America’s Cup Race Officials, the Technical Director and Umpires be selected from ISAF officials. This is an excellent step in the right direction.
But a major sticking point remains the arbitration panel. Adding two members simply gives Alinghi a 3-2 advantage rather than their previous 2-1 advantage.
Standard operating procedure for selecting an arbitration panel is to have the Challengers pick two members, the Defender pick two, and those four individuals agree on a fifth member. That would be fair. “

Russell Coutts was also making noises that suggested BMW Oracle were moving closer to the fence. He was reported as saying:

“They were some positive things, we are definitely making progress, we are getting to a point where we agree to most of the points.”

He also said Oracle backed Alinghi’s proposal last month for a 2010 Cup using a new and faster but cheaper class of yacht than the AC90s which competed in the 2007 competition. If it wins the court case, Oracle, as the official “challenger of record”, will try to negotiate a deal with Alinghi to this effect, said Coutts.

Then the “virus” of the process, the court case, was back on the agenda as briefs were filed for the appeal and everything went back to adversarial taunting like boxers yelling at each other at a pre-fight press conference.  As well as Alinghi, the GGYC and Tom Ehman are facing five other teams and the City of Valencia. Amicus briefs were filed on behalf of French Spirit, Argo Challenge, Green Comm Challenge, Team Shosholozo and Ayre Challenge. 

Back in lawyer mode, Tom Lehman said:

“We are in no way fighting to exclude other challengers from the America’s Cup, as today’s SNG court brief falsely alleges. In fact, we were compelled to begin preparations for a default match in a multi-hull solely because of Alinghi’s refusal to negotiate with us toward an AC 32-type protocol. As we have consistently and publicly stated – and made abundantly clear to Ernesto Bertarelli – it has always been our intent to negotiate a conventional multi-challenger regatta with fair and competitive rules.”

Curiously, Mr Lehman might have a hunch that he is losing the PR battle. BYM News has reported that they have been contacted by strategic communications specialists, on behalf of GGYC/BOR. Robinson Lerer & Montgomery’s list of expertise is headed “Crisis management” and its services are described thus: “At RLM, we work with each of our clients to determine effective core messaging, quickly develop a comprehensive strategy to meet the client’s business goals, and integrate a range of communications activities as appropriate.  We develop a unique communications program to meet a client’s specific need – to seize a new opportunity, undertake a new corporate direction, respond to an emerging crisis or competitive challenge, or strengthen the client’s corporate reputation in the long term.”

Ehman Objection: “None of the Challengers, except CNEV, has any vote on any matter. Moreover, CNEV is specifically exempted from acting on behalf of the other Challengers.” 

Meeting outcome: 10 of the 12 entered challengers present at the meeting, along with the Defender Alinghi, expressed a unanimous will to work together constructively towards a class rule and regulations that satisfy all entered competitors. 

Ehman Objection: “The Defender, through ACM, selects all race officials and umpires.”

Meeting Outcome: 

• The Arbitration Panel be expanded to five members, with the two additional members being appointed by all the entered competitors through a democratic process 
• The Race Committee has been agreed by all the entered competitors 
• Other America’s Cup Race Officials, the Technical Director and Umpires will be selected following a similar process amongst ISAF officials.