Saturday, April 11, 2009

Valencian local and regional authorities rescind contract for 2009 pre-regattas

It was without any doubt a very short-lived contract. A mere 10 days ago, America's Cup Management (ACM), Valencia's city and the regional government signed a contract worth 9 million euros for the celebration of America's Cup related pre-regattas next July. According to all parties, the July regattas were to go ahead regardless of the final decision the NY Court of Appeals might take in the legal fight opposing Alinghi and BMW Oracle.

A little more than 24 hours later, the NY Court of Appeals ruled in favor of BMW Oracle and put the contract into test. Shortly after the court ruling, Rita Barberá, mayor of Valencia, revealed the existence of clause 4.5 in the contract that gave the two Valencian public organizations the right to rescind the aforementioned contract if the American court ruled against Alinghi before the 9th April. Nevertheless, neither she nor the regional government made public their intentions.

Well, as it was reported yesterday in the Spanish media, neither one had many doubts about what decision they were about to make. In fact, last Monday, 6th of April, Barberá decided to use the clause 4.5 and informed ACM of her decision by sending a brief fax. As per the reports, the fax mentioned that both Valencian authorities took the decision to jointly rescind the contract.

The contractual payment of 9 million euros (plus 16% taxes) was to be split 60/40 between the region and the city and it was due by the 1st of June. Of course, neither party has any financial obligation now towards ACM and as Barberá stated the only cost bore by the city was for "the contract photocopies and the pen for its signature".

Once again, the question is what the future holds for the world's oldest sports competition. Since the day of the court ruling it is solely up to BMW Oracle and Alinghi to decide. They can either reach an agreement in order to hold a conventional multi-challenger competition in the near future or fail to settle, in which case they will have to face each other aboard their monster multihull yacht, next February. We hope, in either case, it's in Valencia but of course who are we to have any say?

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At 2:38 PM, Anonymous Anonymous said...

Thank you Larry Ellison, what a mess you have created, you idiot!

At 1:04 AM, Anonymous Anonymous said...

2:38 - Where have you been? Had your head in the sand as the whole world knows where the blame lays.

The blame goes not further than EB, Alinghi & SNG who created, condoned & forced CNEV on the yacthing & the AC community.

The NYSC CoA, the 5 past AC Trustees, all 3 levels of Valencia/Spanish government, AC sponsors & now the AC challengers all agree CNEV was not qualified.

Maybe you should pick up any newspaper in the world & do some reading. EB, Alinghi & SNG got hammered by the courts & with an additional warning before you speak out like a idiot.

At 4:09 AM, Blogger Norberto said...

hahaha. as if the mess wasn't created by ernesto and his poodles. if there is one idiot in all this case it's mr. bertarelli, who created a sham yacht club because he was too afraid of having (pun intended) a real challenger of record.

At 6:09 PM, Anonymous Anonymous said...

Valencia canceled the contract after GGYC won the appeal process, not because they don't want to do business with AC. They realize that its impossible to come to an agreement after BOR is involved. Therefore they preferred to pull out then to have this state of limbo that was created by BOR.

Dont forget that all teams had agreed to the AC, minus the idiots from BOR.

At 7:51 PM, Anonymous Anonymous said...

Valencia indicated that they don't want to do business with Mr Ellison. They don't rust him.

I wonder why???????


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