AC Court Decision Favors BMW Oracle
On Thursday, April 2, the New York Appeals Court ruled that the paper yacht club CNEV is out, and BMW Oracle — or more accurately, our own Golden Gate Yacht Club — is the Challenger of Record for the next America’s Cup. You may recall that BMOR was the Challenger of Record for the last America’s Cup, and as such got to accept challenges from other syndicates and organize the challenger series. But after Ernesto Bertarelli’s Alinghi, sailing for Switzerland’s Societe Nautique de Geneve (SNG), won their second America’s Cup in 2007, Bertarelli quickly picked CNEV — which had been quickly created by Valencia officials in order to keep the next America’s Cup sailing out of their city — as the Challenger of Record. Bertarelli and his Alinghi team, the ones who were really calling the shots, also started playing loose with the rules for the next Cup, among other things announcing a new boat design and arranging for the defender to take part in the challenger eliminations.
BMOR syndicate head Larry Ellison and the Golden Gate YC cried ‘foul’ and set legal action in motion that, in the last year and a half, has had more ups and downs than the Dow Jones. Since the Deed of Gift was filed in New York State back in 1887, all legal matters concerning the America’s Cup must be decided in New York Courts. And they’ve been busy. Last year the State Supreme Court ruled in favor of BMW Oracle, but that was overturned on appeal by SNG. This latest and final decision by the State Appeals Court — no further appeals can be made — reinstates the original decision: CNEV did not satisfy the requirements of the Deed of Gift, and, since BMW Oracle did, they were the Challenger of Record. The entire text of the decision can be viewed here.
Where does it go from here? Ellison and Bertarelli have to get together and negotiate. They can choose to run a ‘regular’ America’s Cup Regatta in Version 5 IACC yachts (the ones used in the last Cup) as early as next April. Or they can choose to move ahead with a special Deed of Gift match between just the two syndicates, to be sailed in giant multihulls 10 months from the date of decision, which means next February. Since Ellison threw down this gauntlet — and as you probably know, has a 90-ft x 90-ft super-trimaran built and sailing — Bertarelli would get to choose the venue. There is also the possibility that more legal action could be initiated that would mire the Cup in another year or two of court battles.
Based on the following response of SNG to the latest court decision, one would hope that Bertarelli is finally willing to eat a little humble pie and choose the first option: to get the 33rd America’s Cup back on the water in V5 boats:
“It has consistently been our view that the America’s Cup should be fought on the water. Today the American courts and the Golden Gate Yacht Club has won the right to challenge (SNG). We will now discuss the terms of the regatta with them and will prepare our defense of the America’s Cup.”