33rd America's Cup - GGYC's View On Court Proceedings

The Golden Gate Yacht Club have posted a release reflecting on Monday's court decision to request written arguments and to set a date for proceedings; not surprisingly, it does not reflect on the court's decision not to grant an injunction on SNG.

Once again, a chink of light - Tom Ehman states a strong preference for a negotiated solution.

Download the full release via the GGYC website, Here.

Court Orders Date for America’s Cup Hearing
New York, NY 10 Sept. 2007 --

The Supreme Court of the State of New York today ruled that it would hear argument on October 22 on the validity of the challenge that has produced the proposed protocol for the next America’s Cup.

“We are very pleased with this decision, as we are keen to see this issue properly resolved with a minimum of further delay,” Tom Ehman, Head of External Affairs for GGYC’s team, BMW ORACLE Racing, said.

“During the hearing, the court suggested that the parties engage in mediation to resolve all disputes. This is a course that we continue to support,” Ehman said.

“Our strong preference remains to negotiate a solution. If this is not possible, today’s decision provides for swift resolution through the courts.”

He said the team strongly favors an America’s Cup regatta like the last one sailing in monohulls, and had supported seeking a quick legal resolution so that all participants could know the outcome of the case as soon as possible.

The San Francisco club alleges that the current America’s Cup Defender, Société Nautique de Genève (SNG), is in breach of its duty under the Deed of Gift that governs the Cup. It says SNG has accepted a challenge from an invalid contender, and is seeking to impose an unprecedented one-sided set of rules that unfairly advantage the defender to the detriment of all other competitors.

Ehman said that on October 22 the court would hear argument as to the merits of the case and that a judgement could be expected shortly thereafter.
--Ends--

Coutts Offers Bertarelli an Olive Branch

Valencia Sailing is carrying a statement from BMW Oracle Racing's Russell Coutts indicating that GGYC would be prepared to drop its legal challenge to the 33rd Protocol if it was to be completely rewritten to reflect the wishes of Mascalzone.

It strikes us that if this were to be the case, GGYC wouldn't have much case to pursue anyway, which might explain why it fell to Coutts to release the news, not Ellison.

Anyway, a flicker of light on the horizon - surely Bertarelli can't ignore this? Watch this space!

Bertarelli Clarifies 33rd Protocol - slightly

At this afternoon's ACM press conference to announce Valencia as the official host of the 33rd America's Cup, Alinghi & ACM's Ernesto Bertarelli clarified his view of events surrounding the 33rd Protocol.

He defined Valencia as a fantastic venue; subject to ACM's final decision, the 33rd Cup would be raced on the same North & South courses.

Regattas would take place in Valencia in Spring 2008, with a further one in Autumn 2008, at a venue yet to be determined by ACM, but guaranteed to be in Europe. Challenger selection would begin in 2009.

The new class of boat would be decided by October 2007; under ACM jurisdiction, consultation would take place with all challengers during September 2007 to define the boat's specification.

Teams will be allowed to build 2 vessels, but never to allow more than one on the water. Challengers will not line up on the water against any similar vessel until the challenger series. The rule applies equally to Alinghi, therefore Alinghi must meet competitors in the Challenger series, but would not proceed through to the challenger series final, and if beaten, they would lose their right to compete (though not clarified, presumably in further challenger matches, not the cup itself!). An independent nomination panel and jury would oversee all arrangements.

Bertarelli then went on to address the challenge from Larry Ellison and BMW Oracle Racing, who he explained that 'having failed to win on the water twice, failing to do better than 5th in the last series, have decided to bring the racing to court, to do what they could not do on the water, to win'.

The challenge posted to SNG indicated Oracle's intention to race exclusively in 90' multihulls; 'this is unacceptable' he explained, indicating that this 'damaging issue' had been passed to the independent America's Cup adjudication panel. He went on to explain that 'Ellison wishes to make this as expensive as possible, launching a costly and expensive campaign against Desfio Espanol and Alinghi, and a costly lawsuit in New York; he explained he knew litigation, and that 'no matter who wins, everybody loses money'. He criticised Ellison for pressing ahead with a costly multihull building program for 2008, while complaining that the ACM had not allowed enough time in the 33rd Protocol for challengers to prepare 90' boats for 2009. He characterised Ellison as having 'created uncertainty and damaging the America's Cup brand'.

Asked later during Q&A whether BMW Oracle racing would be allowed to compete should Ellison lose in court, Bertarelli explained, 'We're not lawyers, we're sailors, we're not corporate raiders', and responded, 'Today is a fantastic day about sport. We do not need this kind of, excuse me, bullshit'.

Lady mayoress of Valencia, Rita Barbera had earlier invited Ellison and his team to drop their litigation and enjoy the hospitality of Valencia.

Coutts for BMW Oracle Racing in 33rd America's Cup

Being widely reported is the attendance by Russell Coutts at today's BMW Oracle Racing press conference, in which Coutts was introduced as the newly signed skipper and CEO of BMW Oracle Racing for the team's challenge for the 33rd America's Cup.

Valencia Sailing were in attendance & have further detail, including images & audio from the conference.

Inset image: Photo © Reuters

AC 33 Protocol bustup - Seconds out, round two

It didn't take long - Club Nautico Espanol de Vela have responded to the Golden Gate Yacht Club's claim to the title of COR already.

BYM Sailing & Sports News carry an English translation of the Spanish statement, indicating:

1. Their acceptance as COR was in accordance with the Deeds of Gift.
2. While they don't refute that the COR must have organised regattas, they indicate that the Deed of Gift does not specifically state that those regattas must have taken place before (as opposed to taking place after) becoming COR, and as they have regattas organised to take place later this month, there's nothing wrong.
3. To GGYC's complaints concerning lack of venue and date of 33rd Cup, CNEV state they're as much in the dark as anyone else, it not being an issue for them; they also point out that at the end of the 31st America's Cup, there was a similar period of time in which date and venue of AC32 were undetermined, and at this time the COR was indeed BMW Oracle Racing!
4. They have upheld the spirit of the Deed of Gift in all actions.

Hmmm... we say:

1. That's for a court to decide.
2. Legal ambiguity at best. It'll be interesting to see what type of regatta takes place - anyone care to bet it'll be a radio controlled boat festival?
   The Deed of Gift states:
   Any organized Yacht Club of a foreign country, incorporated, patented, or licensed by the legislature, admiralty, or other executive department, having for its annual regatta an ocean water course on the sea, or on an arm of the sea, or one which combines both, shall always be entitled to the right of sailing a match of this Cup, with a yacht or vessel propelled by sails only and constructed in the country to which the Challenging Club belongs, against any one yacht or vessel constructed in the country of the Club holding the Cup. (source: Wikipedia).
   
3. Surely the point of being COR is to hold the current cup holders to account and clarify the detail? It's hard to imagine that Alinghi are in as much doubt as the other potential teams as to what where and when - which gives them the advantage that the role of COR is intended to prevent! Touche, in terms of Oracle Racing's previous conduct.
4. As ever, the interpretation is everything. In terms of their apparent conduct as a COR of convenience, we disagree.

The question is, will this elevate to legal conflict?

Right, where's that gum shield and sponge?

Challenge to AC33 Protocol - Let Battle Commence

The Golden Gate Yacht Club challenges the 33rd America's Cup Protocol.

In what has either marred or added interest to (depending on viewpoint) recent America's Cup competition, a not unexpected challenge has been issued in respect of the contents of the recently published 'Protocol Governing The Thirty Third America’s Cup' (we previously covered the news here).

In a series of documents detailed here, the Golden Gate Yacht Club (GGYC - represented by BMW Oracle Racing) yesterday wrote to Societe Nautique de Geneve (SNG - represented by holders Alinghi), claiming that the content of the Protocol issued was in fact invalid, for the following reasons:

• The declaration of Club Nautico Espanol de Vela (CNEV - apologies, we can find no website for the club - represented by Desafio Espanol) as Challenger Of Record (COR) is invalid as CNEV is not a bona fide yacht club, effectively only been recently formed for the specific purpose of application as COR.
• CNEV has never held a regatta - a requirement in the Deed of Gift (the document defining the regulations under which the America's Cup takes place).
• CNEV, in becoming COR, has delegated all setting of racing regulations for the 33rd Cup to SNG, at least breaching the spirit of the Deed of Gift in it's requirement that competition should be fair (our interpretation).

Accompanying the letter challenging the 33rd Protocol, GGYC also enclosed their own, 'bona fide' (their words) challenge - presented with 'much pleasure' no less - demanding recognition as legitimate COR.

Most notably, it also cautions that should SNG and they as COR fail to mutually agree upon a new protocol, then the next America's Cup should be undertaken in accordance with the Deeds of Gift, without further influence from the current holders. Amongst other matters, this defines the next match to commence in ten months time, and that the challenger shall have influence over choice of vessel!

It is widely held that the current 33rd AC Protocol is designed to give SNG's Alinghi the maximum competitive advantage over all other challengers, and many consider this as unsporting.

No doubt, a number of other clubs will have made application prior to GGYC's submission dated 11/7/07 - including TeamOrigin's Royal Thames Yacht Club (rumoured to have negotiated to be recognised as COR if Emirates Team New Zealand had won the cup, and to have covered the issue with Alinghi when purchasing the boat SUI 75). We can't imagine, therefore, that if the issued Protocol is torn up, BMW Oracle Racing would ever be seen as COR - unless any team challenging the selection of COR by the cup holder automatically has the right to be COR if successful in that challenge (sorry, we just don't know).

The 'sailing' part of the America's Cup has just ended, and now begins the 'handbags at dawn' component of Sailing's greatest prize.