No relief from Arbitration Panel for American Magic

by Craig Leweck, Scuttlebutt Sailing News
America’s Cup challenger American Magic failed to gain a favorable ruling by the America’s Cup Arbitration Panel as the USA team sought to be excused from sailing in the second preliminary regatta in Saudi Arabia.

Each entrant for the 37th America’s Cup understood they’d be required to participate in all preliminary events, but when the event location of Jeddah was disclosed on April 28, the New York Yacht Club team wanted relief from participation due to reasonable and genuine safety concerns.

It was the decision of the Arbitration Panel on May 28 that the Protocol did not grant them the authority to authorize the team’s request, and it was at the discretion of Challenger of Record and Defender (COR/D) to excuse any competitor from required events.

The risk for American Magic is, failing to receive permission, they incur a financial penalty or a points penalty that is applied to the Challenger Selection Series.

Another issue that rose from the Arbitration Case was how American Magic’s application, which was submitted on May 3, got distributed to the New Zealand media which published reports on May 16. This act breached the confidentiality obligation within the event Protocol.

Having heard rumors about this application, I contacted the American Magic team on May 12 for a statement, and the team gave me a very firm ‘no comment’. When media reports were later published, there was still no public documents available on the event noticeboard.

In the Arbitration Panel’s decision, it states:
“The breach of Article 67.12(b) of the Protocol is a significant concern. An entire copy of the Application has been disclosed to the media whilst these proceedings were continuing. It appears to be a blatant breach of the Protocol, likely intended to cause effect to COR/D. All Competitors have denied any such breach. If such a breach occurs in the future, the Panel gives notice that it intends to take more stringent steps including possible orders of discovery.”

The COR/D agreed to review American Magic’s request to excuse non-participation in the Second AC37 Preliminary Regatta in Jeddah and would make a decision in due course in accordance with the Protocol.

Following the publication of the AC37 Protocol and AC75 Class Rule on November 17, 2021, the AC75 Class Rule and AC Technical Regulations were finalized on March 17, 2022. The entry period opened December 1, 2021 and runs until July 31, 2022, but late entries for the 37th America’s Cup may be accepted until May 31, 2023. The Defender was to announce the Match Venue on September 17, 2021 but postponed the venue reveal, confirming it would be Barcelona on March 30, 2022. The 37th America’s Cup will be held in September/October 2024.

Teams revealed to challenge defender Emirates Team New Zealand (NZL):
• INEOS Britannia (GBR)
• Alinghi Red Bull Racing (SUI)
• Luna Rossa Prada Pirelli Team (ITA)
• NYYC American Magic (USA)
• K-Challenge Racing (FRA)

Preliminary Regattas
September 14-17, 2023 (AC40) – Vilanova i la Geltrú, Spain
November 30-December 3 (AC40) – Jeddah, Saudi Arabia
August 2024 (AC75) – Barcelona, Spain

Noticeboard: https://ac37noticeboard.acofficials.org/
Additional details: www.americascup.com/en/home