Friday, March 7, 2008

America's Cup - What's New?

The America's Cup, currently, is little better than a war zone and Emirates Team New Zealand fired two missiles into the battlefield yesterday. The Kiwis entered two actions into the New York State Supreme Court in an effort to bring the defenders of the 157-years old trophy into line.

The Societe Nautique de Geneve, Team Alinghi and its owner Ernesto Bertarelli, together with the organising America's Cup Management, are jointly and severally charged with breach of contract in not organising an event in 2009, as contracted with the New Zealand team, and perhaps more pertinently, of a breach of trust in endeavouring to organise a one-sided competition under the rules and regulations it announced with the connivance of the Spanish yacht club that was subsequently disqualified as a challenger. The event is already in court following American Judge Herman Cahn's decision to disqualify the Spanish club because the Swiss submitted further papers that have delayed the settlement order. The Kiwis had a contract with AC Management for an event in 2009, but already ACM had declared that this will not occur. Emirates Team New Zealand seeks damages as per its contract, in excess of $12 million.

The other action has been brought by the Kiwis following a refusal by Bertarelli to renegotiate the protocol that ACM established when it colluded with the now-disqualified Spanish yacht club. American Team BMW Oracle should be the new Challenger of Record when the American Judge delivers his settlement order. The two New Zealand court actions claim that will not further delay the event. Dalton was at pains to point out that this expensive process would be funded independently from its revenue sources from sponsors and the NZ Government but said that Alinghi is abusing the powers granted to the defender under the Deed of Gift, and has harmed the event and challenging syndicates.
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