America’s Cup Teams at the Mercy of BMW ORACLE after GGYC Win Court Case

The fate of hundreds of people employed in the business of the America’s Cup hangs in the balance today as the New York Court of Appeals overturned the Appelat Division ruling and found that Club Nautico Espanol De Vela is not the valid Chalenger of Record for the 33rd America’s Cup.

The decision means that work by the Defender Alinghi and 19 other teams to develop a new Cup protocol, boat design and schedule for multi-challenger event are all on hold until the US team announce their intentions. Before any multi-challenger campaign can take place, a one-on-one match race between giant multihulls needs to happen.

The decision hinged on the fact that CNEV had not held an annual regatta at the time it submitted its challenge. The ruling states

“Since CNEV has failed to show that at the time it submitted its Notice of Challenge it was a “[club fulfilling all the conditions required by” the Deed of Gift, it does not qualify as the Challenger of Record for the 33rd America’s Cup competition and Supreme Court was correct in declaring GGYC to be the valid Challenger of Record.

Teams like Emirates Team New Zealand and the UK’s Team Origin will have to wait until BMW ORACLE and Alinghi settle their differences on the water. Some teams may not survive the delay.

appeal-ruling – 2nd april 2009.

Iberdrola commited to CNEV – in Europe.

Different sponsors want different things, but it seems that Spanish electrical giant Iberdrola, doesn’t believe it can activate it’s sponsorship of the (current) America’s Cup Challenger of Record, Club Nautico Español de Vela (CNEV) outside of Europe. It is believed that one of the reasons the team will not be competing in the Louis Vuitton Pacific Series in Auckland New Zealand is that Iberdrola has no immediate place to move into the New Zealand power market. 

While the world’s ‘largest sustainable energy operator’, says it is fully committed to supporting Desafio Espanol, the Spanish team has reduced its operations and is not operating its base, during the winter months, pending decisions on the summer sailing programme, including possible GP42 and TP52 campaigns that, inevitably, hinge on the decision of the New York Court of Appeals.

Given CNEV’s current situation, one would think they would want to look like a team with the resources to compete against other Americas Cup syndicates. That Iberdrola doesn’ think the Spanish market would follow the team in New Zealand doesn’t help CNEV’s case that the city of Valencia and the people of Spain are behind them.

Teams Agree Rules That Ehman Calls Unfair

BMW Oracle’s spokesperson and all round back room wheeler dealer, Tom Ehman, has released a statement for his loyal supporters bemoaning the American team’s exclusion from the discussions about the 33rd edition of the cup. Opinion in the blogosphere was mixed and divided down party lines, but the American team’s choice of arguments were neutralised to a degree by the outcome of the second meeting amongst those teams who have officially entered and don’t have pending law suits against the defender. 

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.

Coutts and Conner Cup Comments

As the CNEV Regatta gets underway in Valencia with Team Origin showing what it takes to win races, BMW Oracle try keep some media attention on their program and 90 foot trimaran. 

The ‘BMW Oracle Media Team’ have interviewed their own boss Russell Coutts about participating in the Louis Vuitton Pacific Series. Coutts has nothing new to say, except that he is looking forward to competing against Alinghi and that the series will be good for the sport. When asked about Brad Butterworth he said “We’re still friends, but we’re competitors first.”

Coutts reiterated the BMW position that they would drop legal action against Alinghi if “Alinghi commits to fair rules. What we’re fighting against are unfair rules like the Defender appointing the judges, changing the rules at any time for any reason, and excluding or disqualifying a Challenger at any time.”

Meanwhile, the Herald Tribune has run a story about BMW Oracle’s 90 foot trimaran including comments by Americas Cup legend Dennis Connor. The man who lost the cup to the Australians also competed in a multihull for the cup against a challenge from New Zealand. 

Predictably , Connor (whose San Diego base is being used by BMW Oracle) says: “The whole sailing world will benefit by having this out on the race course in a lot of different ways. I applaud Larry Ellison for building this boat. I’d like to see it race and I’d like to see Larry win because Alinghi is trying to shanghai the event.”

Team Origin Confirmed for Valencia Race

Team Origin, the British America’s Cup team, most recently involved in the Transatlantic Record attempt with Richard Branson aboard Virgin Money, has confirmed that it will enter two forthcoming America’s Cup version 5 regattas.

The team will compete in the Club Náutico Espanol de Vela annual regatta that is taking place in Valencia, Spain, next week (7-9th November) and the second being the Louis Vuitton Pacific Series to be held in Auckland, New Zealand.

Sir Keith Mills, Team Principal of TEAMORIGIN, stated:
“This is indeed great news for TEAMORIGIN. After considerable delays and frustrations we finally get to go racing!! Desafio Espanol have kindly offered to lend us one of their AC V5 boats, ESP 88, instead of having to transport our own GBR 75 from the UK, and so the CNEV regatta provides us with an ideal opportunity to get our team back together and get out on the water against some top teams, including Alinghi and Desafio Espanol with possibly a fourth team to be added.”

Mike Sanderson, Team Director, commented “There have been many positive conversations going on over the last few weeks regarding the future of the America’s Cup event and so it is great news that we can finally announce today that we get to go racing!! The CNEV regatta has come about with very short notice but we have always kept our team together and so it means we are ready to go racing at any time.

I am certainly looking forward to next week’s sailing and also to the Louis Vuitton Pacific Series early next year. It seems like it has been a long time coming!”

Ben Ainslie, Skipper and Helmsman of TEAMORIGIN added: “Next week’s regatta in Valencia gives us a prime opportunity to get our team together and go racing against some top teams. It will certainly sharpen us up and probably throw us in at the deep end, competing against prolific names such as Ed Baird steering for Alinghi and Paul Cayard for Desafio Espanol. I am raring to go, as are all of the TEAMORIGIN sailing team!”

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