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Frustration boils over in America’s Cup: Challengers demand Team New Zealand restore ‘fair competition’

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Ben Ainslie’s Athena Racing, and US team NYYC American Magic, have issued co-ordinated team statements clearly aimed at stirring things up in the America’s Cup.

Photo: America's Cup

The statements, released Thursday 22 May, follow last week’s announcement by the America’s Cup defenders Team New Zealand that the next America’s Cup will be held in Naples, Italy. They apparently reflect frustration that six months of negotiation with Team New Zealand, headed up by Grant Dalton, have failed to result in a Protocol agreement.

First to be released was British Athena Racing. It reads:

“Athena Racing, representing Royal Yacht Squadron Ltd. as Challenger of Record for the 38th America’s Cup, is concerned by the ongoing lack of transparency around the recent announcement of a Host City for the Cup in 2027 and the impact this is having on the main goal of negotiating a fair sporting protocol.

“For seven months Athena Racing has been in negotiations on a protocol for the 38th America’s Cup with the Defender, Team New Zealand, on behalf of all the Challengers – with the aim to deliver a fair sporting framework and commercially viable event for all America’s Cup stakeholders. Despite recent progress being made, significant barriers remain.

“Typically, a host agreement has only followed the publication of an agreed protocol. In the absence of an agreed protocol, it is therefore difficult to understand what exactly has been agreed between Team New Zealand and the Government of Italy as the sporting framework and details of the event do not yet exist.

“Any hosting agreement will bind challengers to financial and organisational obligations, as well as potential liabilities, making its disclosure fundamental to teams’ participation and commitment to the 38th America’s Cup.

“While we have every confidence that Naples can be a magnificent host for the America’s Cup, we believe that transparency and cooperation between the Defender and all Challengers is vital for the Cup’s future and therefore the recent announcements from the Defender are premature, at best.”

The Protocol is due to be released in the next few weeks, though some details of a draft Protocol were leaked, it’s clear from today’s statements that those suggested terms were a long way from being unanimously agreed.

American Magic about to get the better of INEOS in the first start of the 2024 AC Preliminary Regatta. Photo: Photo: Ian Roman | America’s Cup

NYYC American Magic statement

The Athena statement was swiftly followed by one from NYYC American Magic, who were expected to challenge for the 38th Cup.

Their statement read: “Over the past seven years, we’ve competed with pride, purpose, and perseverance in two editions of the America’s Cup. It has been an honor to represent the New York Yacht Club and the United States on the global stage in one of the most storied competitions in sport.

“As we look ahead to the 38th America’s Cup, we find ourselves at a crossroads and feel that we must provide an update to our teammates, partners, donors, and supporters.

“Despite the best efforts of the Challengers – led by the Challenger of Record – to negotiate in good faith, the Defender has been unwilling to commit to the transparency and cooperation necessary to secure a fair Protocol. Without the structural framework necessary for challengers to pursue viable campaigns, it will remain extremely difficult to unlock the America’s Cup’s potential as a modern, globally relevant sports property.

“We continue to support the Challenger of Record in their efforts to secure an open and balanced Protocol, as without the meaningful changes they are advocating, it is difficult to see how NYYC American Magic can participate in the 38th America’s Cup.

“While we remain committed to the America’s Cup and would welcome the opportunity to compete under a fair protocol, we are equally committed to integrity, transparency, and the long-term health of the institution that is the America’s Cup. We urge the Defender, as Trustee, to work in good faith with the Challenger of Record to restore the elements of fair competition, transparency, and respect for all sailors, globally, who are ultimately the beneficiaries of this time-honored trust.”

It was recently announced that the Cup is headed to Naples, Italy

America’s Cup Protocol disputes

Neither team has specified which elements of the Protocol are in disagreement.

Areas that could potentially be sticking points include sailor nationality, particularly the widely leaked ‘non-compete’ clause which suggests that sailors who have competed in the previous America’s Cup could not compete for a different team in AC38. Such a rule change would have particular relevance now three-times Cup winning helmsman Pete Burling has parted ways with Team New Zealand.

Other areas that have been reported to be under discussion include a change to the ‘in country’ build rule, data sharing– and the future governance of the America’s Cup itself.

Although the Italian host city itself has been widely welcomed, key details surrounding race dates, team bases etc are also yet to be shared – and the clock is now running.

With less than two years until AC38 all teams will be in a race against time. For teams such as Athena Racing, who are also in a race to secure funding following the acrimonious split with previous backers INEOS, the lack of clarity about the shape of the next event will be particularly acute.

There has yet to be a response from the French team, who welcomed the Naples announcement as a positive in their bid to raise funding to challenge for AC38.

Nor from the Swiss Alinghi, who announced that they had withdrawn from the Cup and winding down operations – although Dalton recently hinted to a New Zealand news outlet that he believed the team were in fact recruiting.

The key response the statements are clearly intended to elicit, however, is from Team New Zealand – we’ll report more when we have it


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