Valencia to host 2009 America's Cup pre-regattas

[Source: America's Cup Management] The 33rd America's Cup event authority, AC Management, today signed a Host Venue agreement with the Valencian Municipality and Regional Government for the Spanish city of Valencia to hold two America's Cup pre-regattas, the first from the 10-19 July and the second in October.

Should the pending litigation concerning the future of the 33rd America's Cup be resolved in favour of the multi-challenger event as proposed by the Defender, Alinghi and the Challenger of Record, Club Náutico Español de Vela, these two regattas will be part of the 33rd America's Cup, with the Match scheduled for 2010.

The Defender and the Challengers will meet off Malvarrosa Beach with the ACC Version 5.0 yachts in just three months time for a combination of fleet and match racing much like the highly successful Acts held in the lead up to the 32nd America's Cup.

It's a done deal now. From left, José Luis Villanueva, General Director of Events of Generalitat Valenciana, Rita Barberá, Mayor of Valencia, and Lucien Masmejan, ACM representative. Valencia, 1 April 2009. Photo copyright Jose Delgado / Alinghi

ACM representative, Lucien Masmejan, commented on the announcement: “Valencia hosted one of the best events in the history of the America's Cup last time round and we have every confidence in them doing it again. We are really looking forward to getting on with some America's Cup racing, and I know I echo the desire of all of the teams.”

Rita Barberá, Mayor of Valencia, was delighted: “I think it is a great agreement, an agreement of hope, pride and excitement.” She added: “My will is to host the 33rd America's Cup and the pre-regattas in Valencia because if we study the return and the impact of the 32nd America's Cup on the region, we see that the economic data is very positive – not only for the international exposure of the city but also for the economic benefit on the Valencian economy.”

Other news
Alinghi and Club Náutico Español de Vela held the sixth Competitor Meeting yesterday in Valencia with the entered teams and discussions centered on base allocation and plans for Version 5.0 yacht allocation during the two 33rd America's Cup pre-regattas, the first of which begins on 10 July in Valencia. The group of teams, having worked on the document for the past months, decided to publish the Competition Regulations for the 33rd America's Cup this week.

The next 33rd America's Cup Competitor Meeting is on 28 April.

Reports: Spanish government refuses to negotiate with Alinghi before court decision in NY

After exactly 470 days without holding a meeting, representatives from the three Spanish public administrations, sat down together in Valencia on Wednesday afternoon and during 4 hours discussed the contract Alinghi presented for the organization of 2 regattas in Valencia, in July and October of this year.

As it has been the case in the past, the meeting was just another example of the divide that exists between the three parties and the difficulty in reaching a consensus. On the one hand, the city and regional government of Valencia, that always work in tandem, and on the other hand the Spanish central government.

Elena Salgado, minister of Public Affairs, argued that Alinghi's demand for a 20-million euro host-city fee is "exorbitant". In addition, she also considers "abusive" a number of other clauses, such as the veto to the participation of BMW Oracle in such races, the demand by ACM for the city to build 7 more bases in a short time or the veto to any commercial activity (during the regattas) that doesn't form part of the official organization.

Alinghi's Demands

-Fee: 20 million euros

-Advertizing: Exclusive rights. Only ACM's own brands can be advertized

-Events: Veles e Vents VIP building must be emptied for ACM's own use

-Percentage fee: Bars and restaurants must pay ACM 15% of their profits

-Infrastructure: Seven additional bases must be built inside the port

-BMW Oracle: If the Americans lose the legal dispute they must be expelled from their base within 60 days

As a result, the central government will withdraw from any further negotiations in order to hold the 33rd America's Cup in Valencia, until there is a firm decision from the Court of Appeals in New York. According to the minister, the central government would be willing to take into consideration the payment of 20 million euros, only if these 2 regattas formed part of the 33rd America's Cup. That means, only if Alinghi wins the legal dispute. In that case, the central government would be willing "to pay even more, if necessary". If BMW Oracle prevails in the court, the commercial value of these 2 regattas will be significantly smaller, according to the minister.

For her it is "inconceivable" to sign such a contract with a court decision pending and by doing so the government would be taking sides in the dispute. She also expressed her disapproval of ACM's demand to give BMW Oracle a 60-day deadline to abandon their base in Valencia, in case they lose the court case.

On the other hand, always according to the same sources, the city and the regional government are willing to sit with Alinghi and negotiate the contract, in view of the economic windfall for Valencia. It is more than clear that these 2 public administrations would do whatever it takes to hold these 2 regattas in Valencia, regardless of the outcome of the legal dispute. Nevertheless, Valencia's mayor stated that the contract presented by Alinghi was just a "preliminary draft" and that "they can demand anything they want but everything has to be negotiated".

Spanish central government to agree on Valencia and Alinghi deal

According to information we deem to be reliable, the meeting that took place earlier on Friday in Madrid between the Spanish central government and representatives from Alinghi, concerning the 33rd America's Cup, finished with the minister in charge most probably agreeing on the deal.

The details are sketchy, but it appears that the central government has agreed on one important point, the extension of the tax and fiscal measures for another year. As as a result all America's Cup teams based in Valencia will practically pay no taxes at all for the fiscal 2009 year, similar to what has been taking place for almost 5 years now. Again, we don't have the exact information concerning the details of the agreement and especially the case of BMW Oracle.

Another issue is what will happen if Alinghi loses the current court case in New York. Will the agreement between the Swiss and the three Spanish public administrations still be valid? All these details will surely be ironed out but there isn't yet any public announcement.

Finally, the Valencian Regional government confirmed on Friday that ACM returned in July 2008 the amount of 15.2 million euros, corresponding to its part of the host city fees plus taxes. ACM put an end to the contract with Valencia for the 33rd America's Cup on the 27th of June, 2008, always according to the Valencian Regional government.

SNG files a motion to renew and reargue in front of the New York court

PDF Documents
- Affidavit of Fred Meyer
- Memorandum of Law

[Source: America's Cup Management] Today, December 27, 2007, Simpson Thacher & Bartlett LLP, New York attorneys for Société Nautique de Genève (SNG) filed a motion to renew and reargue in front of the court in the case opposing GGYC and SNG on the 33rd America’s Cup.

The document as well as the affidavit of Fred Meyer, Vice-Commodore of the Société Nautique de Genève (SNG), are to be found in PDF versions here above.

Lucien Masmejan, lead counsel for the SNG, responds to few questions allowing a better understanding of why this has been done.

Why are you filing this motion to the judge?

In substance, we have seen the CNEV rejected as Challenger of Record because of the date of the holding of their annual regatta. The judge appointed then GGYC as Challenger of Record without further instruction, but no one – including the judge - brought its attention on the fact that GGYC challenge was not receivable due to a major flaw in their boat certificate, a key document as per the Deed of Gift.

Furthermore it is our conviction –and also the opinion of the highest Court in the state of New York- that New York courts should not interfere with the complex rules associated with organizing and administering the America's Cup. It would be best leaving this to the sailing community.

What is the purpose of the boat certificate and what actually is wrong with GGYC certificate?

The purpose of the boat certificate is to give the Defender a precise idea of what the challenging boat will be in order to prepare its Defence. The history of the Cup has shown how important was the adequacy of the certificate with regard to the validity of the challenge..

Now, the document submitted by GGYC describes a keel yacht, which is by definition a mono-hull, with a size of 90 feet X 90 feet. We want to make sure this is the boat they would show up with and not a multi-hull, or their challenge would deem to be invalid.

What would then happen?

Assuming CNEV would no longer be the Challenger of record and GGYC Certification proven defective, other challengers would then have priority over GGYC as Challenger of Record. The list of competitors has now no less than 12 challengers who entered before the deadline of December 15. All these competitors are looking for a multi challengers competition along the lines of the Protocol and the Rules and Regulations presented in November and that they committed to.

What is your ultimate objective and why such a procedural process?

Our objective is quite simple and we recurrently expressed it. Have a 33AC with a multi challengers’ selection series in AC90 Yachts. As the date cannot be 2009 anymore, we would be looking towards 2011.

To answer the second part of your question, I would reiterate that we are not the ones who chose the legal path. Now, we simply continue the process, so the GGYC has to comply with the same level of details they required from CNEV.

Statement from America's Cup Management

With the continued aim of organising the 33rd America’s Cup for 2009 in Valencia with pre-regattas in 2008, a Competitors Meeting took place this morning to continue work on the Class Rule.

At the end of a constructive meeting the competitors left with a complete draft of the Class Rule and further meetings have been scheduled over the next few days in order to finalise this document and comply with the 31st October deadline for issuing the Rule.

For the competitors and AC Management this is a fundamental milestone and the focus of all our attention. As organisers of the 33rd America’s Cup we certainly welcome any other challenger to come and join the process for the last few days of Class Rules development and for the consultations on the competition and event regulations.

SNG and Alinghi announce Protocol amendment and make a final appeal to BMW Oracle Racing

[Source: Alinghi] Today the Société Nautique de Genève (SNG) and Alinghi announced that after a series of successful Competitor Commission meetings and discussions with the legitimately entered challengers, the Protocol has been amended in agreement with the Challenger of Record, Club Náutico Español de Vela (CNEV). As a result of this, the majority of BMW Oracle Racing’s concerns have been addressed and the Defender issues a final appeal to the American team to drop their legal actions and join the competition.

These developments continue the progress of planning the 33rd America’s Cup, as Brad Butterworth, Alinghi skipper, explains: “The Competitor Commission meetings were set up as a forum to shape the 33rd America’s Cup and this avenue of dialogue is really working for the better of the event. With this and the ongoing design consultation period, which will define the new class rule and competition regulations, we are making good progress towards the 33rd.”

These amendments, as a result of Competitor Commission meetings, also reflect many of the desired changes brought forward by BMW Oracle Racing and discussed between Brad Butterworth and Russell Coutts, BOR skipper, over the last few weeks, in an attempt to resolve their concerns over the 33rd America’s Cup Protocol.

As a result and following these changes, Ernesto Bertarelli, Alinghi syndicate head, appeals to the Golden Gate Yacht Club (GGYC): “I would again appeal to BMW Oracle Racing to enter the 33rd America’s Cup as a legitimate challenger. It has been demonstrated that dialogue is possible for the better of this event and it should be noted by them that many areas of their concerns have been addressed.”

And finally he added: “We would also like BMW Oracle Racing to consider that their action is hindering the opportunity for other teams to enter the competition, and harming the ability of existing competitors to generate sponsorship income and properly plan their challenge.”

The Protocol amendments are as follows:

With regards America’s Cup Management’s (ACM) power to disqualify a competitor, this has been clarified to say that, should a competitor refuse to be bound by the Protocol, then they will have recourse to the Arbitration Panel without risk of disqualification until the Panel rules.

Secondly with regards ACM’s right to refuse an entry. The amendment is a restriction of ACM’s ‘ability to reject’ to an ability only on very specific grounds, which are: failure to comply with the Deed of Gift, a capacity issue within Port America’s Cup or a need to provide an equitable balance of competing nations. The SNG has made it clear that, should the GGYC abandon their legal action, they would be welcomed as a competitor for the 33rd edition and could shape the event along with the other challengers and the Defender during the ongoing Competitor Commission meetings.

A further suggested amendment point, on recommendation from the Arbitration Panel, regards the power of ACM to amend the Protocol and other rules. This has been changed to state that ‘any proposal to make any Protocol changes, related to the way in which the Arbitration Panel works, must be subject to its prior approval.’

In addition to this amendment, the SNG and CNEV have deleted the power of ACM to remove members of the Arbitration Panel.

Finally, the concern regarding ‘neutral management’ has been amended to extend the Fair Sailing rule to apply to all matters directly related to the regatta.

Design of new America's Cup Class Rule underway

[Source: America's Cup Management] America's Cup designers from Alinghi and the five challengers attended the first design consultation meeting on Saturday 15 September at the AC Management offices in Valencia.

Tom Schnackenberg, the class rule and competition regulations consultant, on behalf of ACM, submitted the general summary of the rule status and invited comments from the challengers. On the agenda for discussion was the philosophy, which foresees an exciting race boat to watch, in terms of speed, size and power. The 90footer must be physically and technically demanding for the sailors, as Schnackenberg describes: "A boat that harks back to the physical demands in Fremantle for example where every day was raced in 22 knots."

Many design features need to be straightforward initially due to the tight timeframe that teams will be working within on a two year Cup cycle, but room must be left for substantial future development.

The key dimensions were confirmed as 90ft waterline length and 6.5m draft with a retractable keel to 4.1m, while other key dimensions, including beam, weight and consequently the sail area have been decided based on the infrastructure constraints in Valencia (bases, pontoons, etc). These and the key structural rules will remain confidential to the teams participating in the meetings until the 31 October when the new class rule will be made public.

Tom Schnackenberg commented on the day: "Everyone was very well behaved! I think we have made an excellent start with what is really a very important task. We want this rule to excite designers, sailors and the public alike and to form the foundation of a class that will endure and prosper for a long time." His positive comments were welcomed by Grant Dalton of Emirates Team New Zealand: "This is a good start to the next Cup and we at TNZ are really excited about the new class. There is no time to lose with such a short Cup cycle and we're pleased that we're getting underway."

The next meeting is scheduled for the 15 October where the design group will discuss the 1st draft of the rule. And meanwhile Schnackenberg will continue to receive input and develop a dialogue with the challengers and Alinghi as part of the design process.

Main points of the Alinghi-ACM teleconference

Alinghi and ACM held a teleconference that ended half an hour ago whose main issue of course was to present the position of the Defender of the America's Cup regarding the 33rd edition. Brad Butterworth, team skipper was accompanied by Hamish Ross, general counsel and Michel Hodara representing America’s Cup Management.

Most of what was said in the brief talk and the Q&A session that followed have already been published in the press release Alinghi sent right before the end of the conference. We will report on the most important issues:

New challengers: As it was stated by Michel Hodara, the German challenge was officially accepted on the 30th of August, bringing the total number of teams (including Alinghi) to 6. The German team had already made it clear they had the intention to be present in the 33rd America's Cup. Indeed, they are currently building the latest Version 5 America's Cup Class boat, GER-101, most probably the last to be built under the previous rule.

Hodara added that there is currently half a dozen potential teams talking to ACM and as a result, it will be highly unlikely there won't be an Italian challenger in the 33rd America's Cup.

New America's Cup class: Brad Butterworth repeatedly stated his vision about a more dynamic, spectacular, boat, especially in fleet races. In his view the 90-foot boat proposed by Alinghi does exactly that. Not only that, starting with a clean sheet, the smaller or newer teams will not be handicapped and probably have a much better chance. According to Butterowrth, "when you have a vision for the future and you want the Cup to go forward, you have to be aware you sometimes have to take a decision that might cause a break with the past", adding that "it is now a great opportunity to change the class."

As far as the time schedule is concerned, Alinghi and the other 5 challengers will start discussing on the new rule from next week. Challengers will be involved in the establishment of the rule whose final version will be made public on the 31st of October. According to Hodara, a number of "regulations" will be "issued" during that 6-week period, although it was not clear whether they will be accessible by the general public or just the 5 challengers involved. A "technical consultant" will be in charge of the consultation between Alinghi and the challengers, although his exact role was not discussed.

Butterworth, also touched the issue of training with the new boats. Unlike the previous edition, teams will be able to only sail one new boat and the only time they can sail against another yacht will be in organized races in Valencia.

GGYC litigation: Alinghi's stance was much more reconciliatory towards BMW Oracle. Obviously, the sine qua non condition for Alinghi is for GGYC to drop their lawsuit in the New York Supreme Court but Hamish Ross stated that the two parties have met a number of times and that they would hold a teleconference tonight. If GGYC dropped their lawsuit then BMW Oracle would be accepted and invited to "rejoin the America's Cup community and discuss the protocol, similar to any other challenger", according to Ross.

Alinghi and ACM present their case

[Source: Alinghi] Earlier today, Alinghi, Defender of the 33rd America’s Cup, gave a progress report on preparations for the 33rd America’s Cup at the Société Nautique de Genève. This gathering marked the start of the 33rd America’s Cup campaign and a return to business after the August break. Brad Butterworth, team skipper was accompanied by Hamish Ross, general counsel and Michel Hodara representing America’s Cup Management.

The group announced several developments in the preparations for the 33rd America’s Cup. The first is that the design consultation period, due to start in mid September, will last for six weeks and will result in the definition of the class rule. The consultation will be facilitated by an expert consultant to ensure the views of all five challengers are represented. Secondly, Brad explained that the clear intention regarding the development of the rules is to have a “tight design box” in order to facilitate close racing. “Our objective is to create a tight design box rule that will ensure the emphasis remains on sailing skill and exciting racing as we have recently seen during the 32nd America’s Cup, this together with large, visually impressive state-of-the- arts boats will help us achieve our vision for the next Cup,” he declared during the press briefing in Geneva. “We are keen to return the America’s Cup to the romantic era of J-Class size yachts, albeit updated with the very latest technology. This will create a superb spectacle and event for sailing fans worldwide.”

It was also announced that in the next few days there will be a Competitor Commission meeting to discuss the 33rd America’s Cup and elements of the Protocol, with the aim to mould this edition into an even greater success than its predecessor.

ACM also confirmed today that Valencia has been approved by the Spanish Council of Ministers and has now been officially ratified by all the Spanish Authorities for the 33rd America’s Cup. This completes all contractual proceedings regarding the venue for the Cup in 2009. ACM also confirmed that United Internet Team Germany has been officially accepted as the 5th challenger.

“Most of the team is now back from the summer break and we are pressing ahead with preparations for the next Cup in 2009, with a particular focus on developing the new class rule through consultation with the five confirmed challengers,” said Brad Butterworth, adding: “These new class rules will be released on 31st October 2007, 18 months before the first pre-regatta with the new boats, and two months earlier than initially planned.”

Brad took the opportunity to clarify and further explain aspects of the Protocol that have been misinterpreted over the summer period:

CLARIFICATION OF ELEMENTS OF THE 33rd PROTOCOL

It has been alleged that CNEV is a ‘sham’ and not a legitimate Challenger of Record?
A: The legitimacy of the CNEV is unquestionable. For the 32nd America’s Cup, Desafío Español represented the Spanish sailing community through the Federation and it was decided to create a new club that captured the essence of Spanish sailing. This new Club incorporates the America’s Cup spirit in Spain and is chaired by the Vice Chairman of the Spanish Sailing Federation. BMW Oracle Racing are attempting to undermine the challenge on two counts both of which are erroneous as there are several examples of clubs being formed specifically to challenge for the America’s Cup (including clubs from Australia, Japan, Germany, US and Canada) and of clubs holding regattas after submitting a challenge. Furthermore, the credibility of the Spanish Challenge is further underlined by the strong performance demonstrated during the 32nd America’s Cup with them advancing to the Semi Final.

What is the impact of the BMW Oracle Racing legal challenge?
This is a legal ambush by one party; the fact is we have six competitors, including Alinghi, lined up for the 33rd America’s Cup. It is a distraction for the America’s Cup and is totally self serving on their behalf. It is most damaging for teams that haven’t yet entered given that this climate of uncertainty created by the GGYC prevents them from gaining sponsorship and building their teams. The 32nd America’s Cup saw the best action on the water and that is what we want for the 33rd America’s Cup.

What is the reason that ACM can refuse an entry?
See AC 33 Protocol clauses 2.7 (d), 4.4
A: First of all a competitor has to fulfil the requirements of the Deed of Gift and the Protocol. Furthermore, ACM is the event organiser and this rule has been written because, as in other major sporting events, we have a limited number of entries available, however, if a potential entrant feels they have been unfairly treated there is recourse through the Arbitration Panel.

ACM can throw out any competitor at any time?
See Protocol clause 5.4 (b)(d)
A: No, ACM does not have the power to throw out a competitor at any time. ACM has the power to disqualify a competitor who refuses to be bound by the rules. Even in this extreme situation the competitor concerned would be entitled to appeal to the Arbitration Panel.
This is very similar to the obligations of any other global sporting event authority, including the IOC, FIFA and the FIA.

The officials are not independent?
See Protocol clause 5.4
A: The Protocol contains rules to ensure fair sailing and from a sporting perspective the 33rd America’s Cup will be no different to the 32nd. The key is what happens on the water and during the sailing competition will be in the hands of experienced officials, with a record of integrity, accredited by the International Sailing Federation (ISAF). The Challenger of Record can object to any senior (those with decision making powers) appointment if they believe the person is not neutral and the Sailing Jury will determine whether the appointment is neutral or not.

Why does ACM need the right to change the competition regulations from ‘time to time’?
See Protocol clause17
A: ACM administered the 32nd America’s Cup, arguably the best America’s Cup of all time and it needs the appropriate authority to run the 33rd edition. This is no different to any other global high tech sport where the governing body has to provide regular interpretations and clarification of sporting and technical rules in a dynamic environment.
The Challenger of Record or the Defender can object to significant changes and ACM could refer the proposed change to the Arbitration Panel.

The new Competitor Commission has no voting powers?
See Protocol clause 10.1
A: The Defender and ACM need to be in consultation with the challengers to ensure the next event is as good as possible and therefore it made sense to be present within this forum.
It should be noted that the Challenger Commission had no voting rights last time affecting the competition, only the power to recommend. The same applies to the Competitor Commission this time.

The late publication of the new class rules will not give the teams enough time and will provide Alinghi with an unfair advantage?
A: We have been thinking about changing the class since 2003, as a matter of fact Russell Coutts was a strong advocate for a new class of boat for the 32nd America’s Cup. The design team is now back and working after the summer break in preparation for the six week consultation period which starts in mid September. This consultation will lead to the definition of the new class rule which will then be released on 31 October 2007, 18 months before the first pre-regatta in the new boats, and two months earlier than initially planned. In order to facilitate the work during the consultation period and to ensure the views of all competitors are represented an appropriate expert consultant will be appointed to oversee the process.

How will the new class rules lead to ‘close and exciting’ racing?
A: It provides for all competitors to start at the same level. It is our intention to limit the parameters of the ‘design box’ for the new class as this will assist in achieving our vision of state of the art boats and competitive racing befitting of the premier event in international sailing.

Alinghi will gain unfair advantage through competing in the Challenger Selection Series (CSS)?
Our philosophy to reduce cost and encourage competition is to return to the concept of a one boat campaign per team for the 33rd AC. This is the best solution to actively reduce the costs by avoiding having to hire two full crews and produce and maintain two fully rigged boats. However at the same time the Defender needs to be able to gauge and develop its relative performance and therefore needs to be included in the series. The other choice was for the Defender to two boat test from the start of the campaign, which is expensive and less attractive from an entertainment point of view.