U.S. Judge Settles Suit in Favor of U.S. Club, Hummm

In a decision that roils the international sailing community, Judge Herman Cahn of the New York Supreme Court ruled today, Nov. 27, against the current holder and defender of the America’s Cup trophy, Societe Nautique de Geneve (SNG), sponsor of the winning Alinghi sailing yacht. The Golden Gate Yacht Club in San Francisco, sponsor of the challenging yacht BMW-Oracle Racing, filed the suit and claimed that SNG had falsely accepted into the fold a non-yacht club, the Club Náutico Español de Vela (CNEV), as Challenger of Record for the next America’s Cup event, to be held as early as 2009.

“We are very pleased by the decision at it enables everyone to focus on getting the Cup back on track quickly,” according to Russell Coutts, three-time winning America’s Cup Skipper and Chief Executive Officer of BMW Oracle Racing, which is sponsored by San Francisco’s Golden Gate Yacht Club, which filed the suit. “We will be very happy if we can put the last few months behind us and get on with sailing.” His cup victories include successful bids as a hired gun representing the U.S. (Black Magic), New Zealand (Team NZ) and the Swiss (Alinghi).

BMW Oracle becomes the replacement Challenger of Record, tasked with organizing the other seven challengers, against the Defender Alinghi syndicate, headed by Ernesto Bertarelli, a Swiss sailor and former pharmaceuticals magnate. Mr. Coutts indicated he favors a traditional cup match-up in 2009. “We will immediately endeavor to meet with the other challengers to mutually agree to a fair set of rules negotiated with the other teams.”

In the America’s Cup regatta prior to this year’s, America’s Cup 32 in 2003, BMW-Oracle Racing had served as Challenger of Record, a powerful organization charged with organizing the elimination races and events for all of the challenging clubs. A single challenger emerges from these rounds and sails against the cup Defender. The BMW Oracle challenge team was eliminated, to the surprise of many challengers, in early rounds of the challenger competitions.

The current suit is an outgrowth the defeat of the only U.S. team entered in America’s Cup 33, held this past July in Valencia, Spain.

By ruling against the America’s Cup Management (ACM) decision to accept the newly formed CNEV yacht club as Challenger of Record, the judge’s ruling specifically designates BMW Oracle Racing as the new Challenger of Record. As such, BMW Oracle has already indicated it wants the next America’s Cup regatta to be held in 90-foot long mega-catamarans, capable of speeds exceeding 40 knots. Some of these cats are already breaking world records in ocean crossings and cape roundings. (They’ve also racked up some spectacular crashes, disintegrations and delaminations along the way.)

The judge noted in his brief that the new Spanish club did not appear to meet the traditionally accepted definition of a yacht club and did not meet the America’s Cup’s Deed of Gift from the mid-1800s. The CNEV had conducted no regattas, a requirement of the Deed, had no web site and no membership roster or boats, basic features of a typical yacht club.

Ernesto Bertarelli, President of the Alinghi sailing powerhouse, said in a prepared statement: “We are disappointed that a technicality made the CNEV invalid, and we are now are looking forward to discussions with the Golden Gate Yacht Club to keep the America’s Cup functioning.” Bertarelli has already announced that the next America’s Cup was to be conducted in 2009, two years earlier than previous Cup events held every four years, and was to be sailed in a new class of 90-foot yachts, 25 feet longer than today’s America’s Cup sloops. This month, however, the America’s Management Committee had postponed the next event indefinitely until the judge’s ruling settled matters.

He added: Today’s decision against the validity of the Club Náutico Español de Vela (CNEV), the Challenger of Record, is a disappointment to the Société Nautique de Genève (SNG), AC Management (ACM), Alinghi and the seven entered Challengers affected by the outcome. There will now be a thorough review of the Judge’s decision and an analysis of the various options offered by the Deed of Gift.”

Back in July, the Golden Gate Yacht Club had entered a challenge for America’s Cup 33, the next regatta. The Club noted: “We will endeavor to work with SNG to mutually agree to appropriate terms for the 33rd AC to keep the event exciting and fair for all. Under SNG’s stewardship, the 32nd Cup delivered some of the most hotly-contested racing in recent Cup history, and brought Cup sailing to more people worldwide than ever before. We hope we can build on this for the future and continue the momentum we started here together in Valencia.”
It looks as though they are going to get their chance. Previously, they had complained that the CNEV is a brand new club specifically created for the challenge, thus failing to meet the requirements for a challenging yacht club as defined by the Deed of Gift dating back to 1857.

This is at least the second time a U.S. judge has ruled in favor of a U.S. team against a foreign challenger. Most recently, this occurred in the AC event that pitted U.S. racing catamaran against a giant sloop entered by Alan Bond of Australia.