America's Cup Management end Valencia contract

by ACmedia on 28 Jun 2008 As a consequence of the continued uncertainty around the 33rd America's Cup caused by the Golden Gate Yacht Club's legal manoeuvres, AC Management and the Spanish institutions say they have have been left with no option but to revise the terms of their relationship, ending the contract signed in July 2007 that named Valencia the Host City for a multi-challenge 33rd America's Cup in 2009.

The two parties have entered into a new agreement that concludes months of discussions trying to adapt the contract signed after the success of the 32nd America's Cup to the current legal context.

Under the new agreement, the organisation and exploitation of the Port America's Cup facilities will be managed by the Spanish institutions from 1 July; the 33rd America's Cup teams retain the opportunity to continue using their bases and the majority of administrative benefits for teams and personnel remain in force until the end of 2008.

Michel Hodara, Chief Executive Officer of AC Management, the company organising the 33rd America's Cup on behalf of the defending yacht club, Société Nautique de Genève, explains:

'Too many issues, such as the dates and participants, remain unresolved until the Appellate Division of the New York Supreme Court publishes its decision; meaning the July 2007 contract is no longer appropriate. The Spanish authorities understand the situation and we are pleased that we have come to a new agreement adapted to the current context, in the best possible spirit. We thank them for extending the use of the bases and the administrative benefits to the teams.'

'This does not mean that we are leaving Valencia. The choice of the venue for the 33rd America's Cup will mainly be based on competitive factors and if Valencia is considered the best place, then a second America's Cup Match will take place here.'

Valencia Life Network reports:

Americas Cup Management and various Spanish Institutions have now appeared to have reached an agreement canceling the contract over the celebration of the 33rd Americas Cup in Valencia, and this despite all sides signing a new transitional agreement, which will enable ACM to be free to choose the site for the next edition of the Americas Cup that has been set for March 2009.

It would appear that part of the reason for this is the continued uncertainty over the event caused by what have been termed as certain legal maneuvres of the Golden Gate Yacht Club, ACM and the Spanish and Valencian Governments as well as the Town Hall of Valencia, that has in turn resulted a modification of the relationship that was formed following a contract for the 33rd Americas Cup in Valencia with as many teams as possible. The Transitional Agreement, which has been signed by all sides is the result of trying to sort something out following the 32nd edition of the Cup.

This new situation means in effect that the relevant Spanish Authorities will take over the control and exploitation of the Americas Cup Port from next week, but that the various syndicates will be able to continue to use their bases in the Port until the end of this year. Commenting on this decision, Michel Hodara, the General Director of ACM, stated: There are far too many questions still to be resolved, such as the date for the 33rd Americas Cup as well as the participants until the Appellate Division of the New York Supreme Court makes public its decision, and as a result the contract signed in July last year is not appropriate.

The Spanish authorities have understood this and we are pleased to have reached an agreement that conforms to the current situation. We would like to thank them for having extended the use of the bases by the teams. This in no way means that we are leaving Valencia. The selection of the site for the 33rd Americas Cup will be determined on a series of competitive factors. If it is thought that Valencia is the best site, then it will be staged here

The Madrid Government has reiterated that it supports the idea that the 33rd edition of the Americas Cup take place in Valencia, and added that the rescinding of the contract was on the cards, whilst Alinghi stated that Valencia would continue to remain in the prime position to stage the event, but added that adverse conditions could affect the staging of the Cup in Valencia, As now we cannot guess where or when or even how the 33rd edition of the Americas Cup will take place as this depends on a decision by the Appellate Court of New York, but if the date set is January 2009, that it cannot not be in Valencia due to the temperature. For his part, Vicente Rambla the spokesman of the Valencian Government stated that he was confident and optimistic that the next Americas Cup races would take place in Valencia, adding that the canceling of the contract was only a small step