The 33rd America’s Cup?
All you need to know...
03 AUGUST 2008
BMW Oracle Appeal against Tuesday’s Decision
Following Tuesday’s surprising decision by the New York Supreme Court of Appeal re-instating Spanish yacht club CNEV as a valid challenger for the America’s Cup, Golden Gate Yacht Club have announced that they have lodged their own appeal. In a statement issued yesterday they stated: “We believe the Challenger of Record has to be a real yacht club. It cannot be something that is manufactured with a defender to set up a one-sided event. This decision would set an absurd precedent,” Tom Ehman, the club’s spokesman said. “We believe we have an excellent case for winning on appeal.”
GGYC had thirty days in which to decide whether or not to proceed. The good news is they took the decision quickly; the bad news: summer recess and the Court is unlikely to set a date much before October.
Brad Butterworth, team skipper of Alinghi and four-time America’s Cup winner, comments: “I’m disappointed that given the opportunity for a multi-challenger competition as a result of the Appellate Court decision, BMW Oracle has chosen to further delay the 33rd America’s Cup.
Comments such as this only go to underline the bad feeling generated by the events of this past year. The chance of the two team principles reaching a mutually acceptable solution seemed to disappear last October when GGYC, home of BMW Oracle, won the first round in a series of court hearings.
An interesting report in Saturday’s Daily Telegraph from sailing correspondent Tim Jeffery: ‘One idea floating around is what would happen if, say, HRH King Juan Carlos invited both sides to mediation. To refuse would be a slight beyond description. Both Bertarelli and Ellison have personal contact with Spain's sailing King, each expressing one time hopes to have the next Cup in Spain.’
This is not as crazy as it might appear – HRH Juan Carlos is believed to have played a significant role in getting Valencia selected as the venue for the 2007
Americas Cup. Whilst he would dearly love to see a Spanish Club as Challenger of Record, he is probably aware that the current storm will not go away until a less controversial challenger is chosen. Both Alinghi and BMW Oracle have said they would hold the next event in Valencia but, until a decision is reached, no-one can make any plans or attract the major sponsors which are a vital ingredient of this ‘Formula One of the Seas’.
The best news is that, if all else fails, this is the ultimate court of appeal. Chief Judge Judith Kaye will have the final, definitive say in the outcome of this whole sorry business. It will be interesting to discover just how much all this litigating has cost our two heroes. Probably enough to finance an entire America’s Cup Challenge.........?
A footnote: although we have been (temporarily, I suspect) denied the ‘Grudge Match’ between Alinghi and BMW Oracle in 90ft catamarans, the two teams are in fact facing one another this week in 40 ft catamarans at Cowes.
Mike O’Neill
29 JULY 2008
AMERICAS CUP SHOCK ANNOUNCEMENT
In a surprise announcement released just over one hour ago, The New York Supreme Court decided by a 3-2 majority that the Spanish Challenge from CNEV in July 2007 was valid after all. The surprise is that most observers had assumed that BMW Oracle were the accepted challengers and that a ‘Grudge Match’ between Oracle and Cup-holders Alinghi would take place in 90ft catamarans. The only questions appeared to be where? and when?
Desafio Espanol chief Augustin Zulueta told The Associated Press: "We're very hopeful that this means an end to this long process and that it will allow all of the teams to race the next America's Cup at Valencia."
The Court also gave CNEV 10 months to prepare for the regatta, meaning that a challenge could take place in 2009 as originally scheduled.
However, this will depend on whether Golden Gate Yacht Club, home of BMW Oracle, decide to contest the appeal. Tom Ehman of GGYC said today “We are surprised and disappointed by this ruling. We will now be taking legal advice and considering the next step.”
Ernesto Bertarelli, the President of Alinghi said: We are delighted with this result; we can now continue with our vision of a multi-challenger event, The decision by the court validates our actions and enables us to put the Americas Cup back into the water.
Agustin Zulueta, the Technical Director for The Spanish Challenge made this statement: Our team is now highly motivated and expectant of being able to compete in the waters off Valencia as Challenger of Record, but equally because all the syndicates will now be able to compete and not only two as was the case previously.
Valencia the reaction to the news was one of quiet celebration, with Valencia Mayoress Rita Barbera stating that the latest decision was 'Very positive for Valencia. Once again Valencia will be the site where a new conventional Americas Cup series of races will take place.'
It is hard to believe that Larry Ellison, head of BMW Oracle will allow matters to rest here. He has invested millions of dollars since last July, both in legal fees, recruiting top yachtsmen and designers, not to mention building some hugely expensive state-of-the-art catamarans.
More as we get it...
Mike O'Neill
28 March 2008
Americas Cup - latest
Just one week ago, it seemed that all the legal stuff had been settled and that a date for the ‘grudge match’ between Alinghi and BMW Oracle would take place this coming October. Then Alinghi announced they couldn’t possibly be ready in time and indicated they wanted the match in June 2009. In desperation, the Oracle team went back to court to force Alinghi to comply with the terms of the Deed of Gift which states that a challenge must be carried out within 10 months. The original challenge was issued in July 2007 and, even allowing for the delay caused by the court hearing last November, it would appear that Alinghi were given more than enough time to prepare.
In the midst of all this came a damning indictment of Team Alinghi’s behaviour in the form of a letter from Vincenzo Onorato, head of Mazcalzone Latino. Onarato had been quietly trying to broker a deal between the two sides since last July. Having come close to finalizing a compromise from Oracle last autumn, Onorato presented the revised protocol to Alinghi “who did not even have the good manners to reply with a "no thanks, we're not interested." Onarato has kept quiet until now in the hope that Team Alinghi and especially Ernesto Bertarelli would finally see reason. The letter, which has been sent to every syndicate head and media outlet, is quite outspoken: “The whole problem stems from the protocol drawn up by Alinghi for the 33rd America's Cup which was presented at the end of the regattas in Valencia”, says Onorato. He went on to liken the Americas Cup to an enormous engine , “driven by glamour, status and tradition”. “Alinghi's decision to take the Cup to court has effectively brought this enormous engine to a halt.” In answer to Alinghi’s claim that Oracle’s action was “to win in court that which they had failed to win on the water”, Onorato points out that “Oracle's primary motivation was .............. to achieve an honest and reliable competition”.
It is fair to say that, of all the challenger teams, BMW Oracle was probably best able to stand up to the might of Alinghi. They had the full support of Golden Gate Yacht Club and have behaved impeccably throughout this fiasco. In explaining the current situation, Tom Ehman of GGYC said ““From the very beginning this whole process has been about stopping the defender from imposing a wholly one-sided set of rules on the Cup that was strongly opposed by the great majority of challengers.”
In Alinghi’s press release, Ernesto Bertarelli claimed: “Now Larry Ellison seeks to win the America’s Cup through its legal strategy rather than racing Alinghi on the water.”
Possibly in recognition of the urgent need to resolve this issue, the New York Supreme Court has agreed to grant a hearing next Tuesday 2 April. We will have to wait until a decision on this latest twist is given; who knows when?
Mike O’Neill
21 March 2008
Americas Cup this year – or next?
The long drawn-out court case between 2007 Americas Cup winner Alinghi and would-be challenger BMW Oracle appears to have been finally decided in favour of BMW Oracle.....or has it? Following a hearing this week in the New York State Supreme Court, the appeal lodged by Ernesto Bertarelli of Team Alinghi was thrown out. Golden Gate Yacht Club GGYC), home of BMW Oracle indicated the match would take place in Valencia this October, 2008. Lawyers for Société Nautique de Genève (SNG), Alinghi’s home club said they ‘look forward to getting the fight back on the water and meeting BMW Oracle Racing on the start line of a Deed of Gift Match in July 2009”.
So, when will it happen, if it happens? It looks very likely that the 33rd Americas Cup will be sailed in 80ft catamarans and there will only be two teams competing: Alinghi and BMW Oracle. Whether the racing takes place this year or next, it is clear that it will be a ‘grudge match’ and that is how it is likely to be sold to the long-suffering public. The animosity between the two billionaire team-leaders, Ernesto Bertarelli of Alinghi and Larry Ellison of BMW is guaranteed to bring out the press in force. It is less likely to draw the crowds we saw during 2007 and that is a shame. Catamaran racing on a short course can be very exciting but, with only two teams featured, interest is unlikely to be aroused in any but the most dedicated fans of sailing.
It is what happens next that will be interesting. Bertarelli has already committed to holding the 34th Americas Cup series in Valencia and, if he wins this match, is unlikely to risk further bad publicity by switching to another venue. Larry Ellison has a different obligation. GGYC would dearly like to get the Americas Cup back in the USA; in San Francisco to be precise. There will be enormous pressure on Ellison to ‘bring the trophy home’. And that would be very sad for Americas Cup racing because, as we saw last year, the event can generate so much more excitement and interest if it is held in European waters than it can ever hope to achieve back in America. Mr Bertarelli has a lot to answer for but, if he can successfully defend the trophy for a third time, this writer for one will be willing to forgive him.
Mike O’Neill
21 March 2008
A game in which everyone loses
In early December, I questioned whether Ernesto Bertarelli would emerge as a loser from the fiasco developing around the non-event that is the 33rd America’s Cup. Or would he accept the ‘loss’ of the court case brought by Golden Gate Yacht Club and re-take the moral high ground by negotiating a revised race protocol with Larry Ellison of BMW Oracle?
The answer appears to be a resounding......silence. Bertarelli has signed up a firm of New York lawyers who have challenged the court’s decision, forcing a new hearing on January 14, 2008. Attempts by numerous challengers to get Team Alinghi round a table for discussions appear to have failed.
The story so far....
Team Alinghi which is owned by Ernesto Bertarelli first won the America’s Cup in Auckland, NZ in February 2003. He brought the Cup back to Europe and, after reviewing a list of six possible venues, chose Valencia to host the 2007 Challenge. Eleven teams challenged for the right to meet Alinghi in the final. One of the main challengers, BMW Oracle owned by American billionaire Larry Ellison, was surprisingly knocked out in the quarter finals when Chris Dixon their CEO and skipper reportedly cracked under the pressures arising from his dual roles. Luna Rossa and Desafío Español were also eliminated, leaving Team New Zealand to face Alinghi. In an exciting final series of seven races, Team Alinghi emerged victorious following a one-second victory in the last race. Days later, Ernesto Bertarelli announced that he had accepted a challenge from CNEV, a new club formed to represent a wider Spanish interest but still with Desafío Español as their team. The reason for this sudden announcement became clear when a new ‘protocol’ (a set of rules and regulations) for the next America’s Cup was published. The new protocol appeared to give the Defender almost unlimited powers to decide who was allowed to race and in what type of yacht. This was greeted with dismay by many of those who had fought so hard to make a success of the 32nd challenge and several teams announced they would not take part in another challenge under these new conditions.
Several days later Golden Gate Yacht Club, home of BMW Oracle, issued a formal challenge to Alinghi, saying they believed the CNEV challenge was ineligible. When Alinghi failed to respond, GGYC initiated a court case in New York, where the America’s Cup Deed of Gift originated. On 25th July, Larry Ellison announced that Russell Coutts, three-times winning helmsman of the America’s Cup, was the new CEO of BMW Oracle. Coutts, who steered Alinghi to victory in 2003, later fell out with Bertarelli and his contract prevented him from appearing for another team in 2007.
Meanwhile Bertarelli solicited challenges from several other teams including Shosholoza, Team Origin and Team New Zealand. It later came out that Bertarelli had privately agreed to recompense Team NZ if the 33rd AC series did not take place in 2009.
In late November, the New York court ruled in favour of GGYC. As Tim Jefferies of the Daily Telegraph said in his recent article: ‘Alinghi owner Ernesto Bertarelli now has three choices: to appeal the decision, to sit down and hammer out a vastly more equitable set of rules than those he agreed with the Spanish CNEV club in July, which triggered this dispute, or he can force BMW Oracle Racing owner Larry Ellison to live by the literal wording of his legal challenge. That would mean only the Swiss and Americans sail in the next Cup using multihulls....’
On 7 December, Ernesto Bertarelli issued an open letter defending his vision for changing the way in which future America’s Cup series were conducted. Bob Fisher, veteran UK sailor and journalist responded with a scathing open letter in which he said: ‘I cannot agree that what you are proposing to do is for the benefit of the America's Cup other than turning it into a revenue source for Alinghi and ACM.’ Fisher went on to say: ‘You propose to change the very dynamic of the event in a way that can only reduce it to the mediocrity of many other regattas.’
So who wins in this situation? Well, Bertarelli gets to keep the trophy for as long as these disputes last but is that ‘winning’? Larry Ellison may feel vindicated by the New York Court’s decision but does he really feel like a winner? What about the people, including all the other challengers, their designers and supporters; how do they feel? And the City of Valencia, whose leaders had the vision to create a magnificent new harbour complex; how must they be feeling now?
No winners will emerge from this sorry mess, apart from the lawyers. As things stand, the best we can hope for is a ‘sailing spectacular’ featuring two big catamarans sometime in 2009; possibly in Valencia. Why catamarans? Because this has now become an arms race between two super egos and neither will be satisfied with a one or two-second victory; this will have to end in a crushing defeat for one or the other. He who blinks first will lose, just like the shoot-out at the end of a second-rate western. Trouble is, who will be watching? The sponsors, who contributed so much to the success of the 32nd ACC series, will have packed their bags and left long ago. The other challengers, just barely existing with skeleton staff and shoestring budgets will have gone home. Team Origin announced last week that they have put their Cup plans on hold. Sir Keith Mills, head of Origin said "I remain totally committed to the America's Cup but I am extremely frustrated and disappointed. What we need is clarity to plan future campaigns."
The much-touted six million visitors, only recently awakened to the extravagant drama of America’s Cup racing will find other diversions. And the people of Valencia will, once more turn their backs to the sea in disappointment.
Mike O’Neill
Tuesday 25 December 2007
Bertarelli the Loser?
I wonder if Ernesto Bertarelli realised the full implications of his decision to impose sweeping changes to the protocol for the 33rd America’s Cup? He must have realised that Larry Ellison would almost certainly invoke the Deed of Gift and must have considered the possibility of losing a court case. But did he realise how much more he stood to lose in this battle? Not only the champion’s high ground which was his by right; not only the moral high ground which he gave away (recklessly, some would say) by insisting upon the new protocol but more than either of these, the aura of the winner. This ‘aura’ includes many things which the winner takes for granted: the status, the loyalty, the access, all things which make life (and tasks) easier and more rewarding.
No one can doubt that Bertarelli and his Team Alinghi have, by sheer determination and a pursuit of excellence, taken the America’s Cup Challenge to a new level. If a mistake was made, it was in thinking that it was their exclusive right to determine the way forward. The initial thought was good: the America’s Cup needs to evolve if the recently-developed increase in public interest is to be retained and built on. The execution of it, namely encouraging the Spanish to become Challengers of Record and thereby ensuring an acquiescent partner in pushing through the changes, was not so good. When Golden Gate Yacht Club, home of BMW Oracle initiated their lawsuit, it was time to take stock of the situation. Instead the situation was allowed to deteriorate to a point where there was no going back.
So what can Ernesto Bertarelli and his team do to recover their lost status? When an honest man realizes that he has made a mistake, he will admit it and make a genuine attempt to put matters right. This means accepting that the new protocol agreed with Desafío Español has to be ratified by BMW Oracle as the new Challenger of Record. Before the court case had been decided, Larry Ellison and GGYC official Tom Ehman had offered a nine-point modification to the new protocol which was supported by at least three other teams. If Bertarelli is prepared to step forward and publicly accept this revised protocol, there will be a collective sigh of relief from just about everyone involved. And Ellison would have little chance of imposing further changes without upsetting GGYC and re-taking the role of ‘bad guy’.
Whether there is still time to secure a new overall sponsor for a 2009 Cup or for the proposed new 90-foot design to be finalised and built are questions that will no doubt be answered in the coming weeks. The burning question right now is whether Ernesto Bertarelli has the courage to accept this ‘loss’ and take the steps needed to put Team Alinghi back on course as winners.
Americas Cup Postponed?
Following the 8 November announcement that the 33rd America’s Cup would take place in July 2009 America’s Cup Management, acting on behalf of defenders Team Alinghi declared on 22 November that the event would have to be delayed. The reason for this was uncertainty surrounding the decision of the New York Supreme Court over the validity of the Spanish Challenge (CNEV).
Today (28 Nov) we learn that, in the words of Justice Cahn of the New York State Court: “The court concludes that CNEV’s challenge is invalid, and that GGYC is Challenger of Record pursuant to the Deed.”
Team Alinghi now have three choices:
1 Accept that they were ‘over-zealous’ in their imposition of a new protocol and hammer out a compromise with BMW Oracle, the official Challenger of Record.
2 Fight it out on the water in a craft chosen by BMW Oracle (rumoured to be 80ft catamarans) and risk losing the Cup.
3 Appeal against the NYSC decision.
Whilst it would be nice to think that Option 1 is the only choice worth considering, events of the last few months suggest that this is by no means the obvious choice for Mr Bertarelli. Sadly, the Spanish Team and their press can hardly be counted on to offer a dispassionate opinion on this whole sorry affair. The same has to be said of the other teams who surrendered to the Swiss billionaire’s persuasiveness. The British press have been muted in their comments, Tim Jeffery of The Telegraph talks of ‘hammering out a vastly more equitable set of rules......’ whilst Matthew Pryor at The Times says: ‘The case has been a power struggle between two of the richest men in the world and in the battle of the billionaire sailors and team owners, Larry Ellison, the American software magnate and Oracle owner, has emerged victorious.....’.
As a result of all the delay and confusion Rolex, who looked likely to replace Louis Vuitton as sponsors of the 33rd America’s Cup, appear to have had second thoughts. One can hardly blame them; they can hardly lend their precious name (and money) to an event that cannot seem to decide what it is doing or when it is going to do it.
The one ray of hope in this whole affair must be the gentlemanly attitude of the Golden Gate Yacht Club, whose spokesman Tom Ehman said: "Certainly it's our view, and we believe this is a consistent view among the other challengers, to have a proper, traditional, multi-challenge regatta here in Valencia in 2009 with a challenger selection series," Ehman said. "We want to do it with mutual consent, not having the defender dictate terms to us."
Whether we can look forward to an America’s Cup series here in 2009 remains to be seen.
Thursday 8 November 2007
At a meeting today in Barcelona (yes, I know, we were confused too but it’s Barcelona Boat Show time), the six teams currently entered to contest the 33rd America’s Cup agreed that the series proper would start 18 July 2009 in Valencia.
This decision follows months of wrangling between Team Alinghi, current holders of the trophy and BMW Oracle; a wrangle which eventually ended up in the New York Supreme Court. A judgement has yet to be handed down, so the five challengers and Team Alinghi decided to carry on as if nothing had happened and announced the racing timetable
The warm-up will begin end of June 2008 with Act 1 held in Valencia, sailing the existing Version 5 yachts. Act 2 will be held in another major European city (yet to be decided) during September 2008, also in Version 5 yachts. Act 3 will take place in Valencia in April 2009 when, for the first time, a fleet of the new 90 foot yachts will race together.
Now, an extra 12ft in length may not sound much but when you learn that the new boats will carry around 50% more sail area yet only 3 more crew, it is not hard to imagine there will be some spectacular racing to be seen. Previous events stipulated that the all-up weight of crew and their clothing may not exceed 1500kg; that’s around 88kg per person. This restriction has been lifted for the new boats which means we are going to see some of the biggest people in the world walking the streets of Valencia in the near future!
The trials will start on 2nd May 2009 and will take the familiar form of Round Robin series, where each team gets the chance to pit themselves against their opposition at least twice. The difference this time is that Alinghi will be part of this series; a measure designed to reduce cost by eliminating the need for each team to need two boats for trialling purposes.
Current challengers are Desafío Español, Emirates Team New Zealand, Team Origin from UK, Team Shosholoza from South Africa and Audi Team Germany.
New teams are expected to announce their challenges in the coming weeks.
©2007/2008 Mike O'Neill
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