Please select your home edition
Edition
Cyclops 2020 - SmartlinkNano - LEADERBOARD

America's Cup: Mediation resolves issues over Host Broadcast

by Richard Gladwell Sail-World NZ 7 Jul 2020 22:54 PDT 8 July 2020
New TV Broadcast Platform vessel - based on AC45 hulls - Waitemata Harbour, January 15, 2020 © Richard Gladwell / Sail-World.com

A Mediation, by the America's Cup Arbitration Panel Chairman, has been successfully concluded between the teams representing Luna Rossa, the team of the Italian Challenger of Record and the Defender, Emirates Team New Zealand.

The spat involves the Luna Rossa's event management arm, COR36, and its obligations to organise and meet its share of costs for the Host Broadcast of the Prada Cup (Challenger Selection Series) and America's Cup Match.

Article 28 of the Protocol for the 36th America's Cup says that COR has an obligation to organise and meet the costs for the Preliminary Regattas and Challenger Selection Series including the production of the TV feed.

Team New Zealand, through its event management arm America's Cup Event Ltd, is responsible for doing the same for the America's Cup match.

Rather than each group doing their own production as occurred in the 1992 and 1995 America's Cups, the Protocol provides for the two bodies "to organise and to meet the costs" for the two events, "including the production of the TV feed".

In October 2018, COR36 and ACE signed a joint venture agreement with two German companies for the media production and race management systems for the 36th America's Cup regattas.

The two companies, Riedel Communications GmbH & Co and West4Media Filmproduktions GmbH, operate under a joint venture name of Circle-O.

In its Application to the Arbitration Panel, ETNZ/ACE sought to have COR36 declared to have failed to meet its obligations under the Circle-O agreement.

If the Arbitration Panel agreed that COR36 had breached its obligations, then ETNZ/ACE "would be entitled to subrogate or otherwise avail themselves of COR's rights under Articles 7.9 and 29.3 of the Protocol in relation to those amounts."

If invoked the effect would be for the Challengers to be all charged for any funding shortfall on the Challenger Selection Series (Prada Cup). The amount of the shortfall would be offset from "money raised from commercial activities" - which includes TV rights sales and event sponsorship, and if there remained a shortfall, then that would be financed by the challengers.

It would appear that the lodgement of the Application seeking the intervention of the Arbitration Panel was triggered by a serious issue involving the provision of the Host Broadcast, sufficient to call into question that it would happen at all, or in a much-reduced state.

[The Host Broadcast is a central TV content pool drawn from on the water, onboard, helicopter cameras plus audio, to which the various broadcast rights holders have access in return for the payment of a rights fee and can compile their own feed, including commentary, to their licenced territory.]

Two of the Challengers - INEOS Team UK and American Magic made representations, as they were affected parties by any diminution or changes in the host broadcast of their series.

"NYYC-American Magic respectfully submits it needs to be consulted and to agree to any proposed changes that might materially affect it. This includes, for example, any changes to the broadcast arrangements or anything that may adversely affect the financial rights and obligations of the challengers under the Protocol especially given the provisions of art 29.2 and art 29.3 as to surpluses and shortfalls"..

INEOS Team UK submitted similar sentiments.

All parties agreed that they wished to have the matter resolved by confidential Mediation, rather than a Hearing. The Mediation was undertaken by the Chairman of the Arbitration Panel, David Tillett, who mediated alone, between COR36 and ACE and reported:

"The mediation process has been successful. This case is thus settled. The other competitors, NYYC American Magic and Ineos Team UK, have been informed of the result of the Mediation."

Costs of NZD$14,750 (USD$9,650) were shared equally by COR36 and ACE.

Related Articles

Gladwell's Line: Pressing ignition on pro-sailing
The sail racing world is spluttering back into life after over 12 months of being hostage by COVID The sail racing world is spluttering back into life after over 12 months of being hostage to the COVID pandemic - here's a look at how SailGP and the America's Cup coped, plus the 2024 Olympic event quandary. Posted today at 7:39 am
American Magic ready to sail with 7-8 days notice
American Magic's Terry Hutchinson says they are all ready to go sailing at 7-8 days notice American Magic's Terry Hutchinson says the AC36 Challenger are all packed and ready to go sailing at 7-8 days notice, if the next venue is Auckland, otherwise they will head back to the USA. Posted on 3 May
SailGP Bermuda: Dramatic onboard collision video
Dramatic video footage shot from on-board Japan SailGP as their courses intersected with USA SailGP Dramatic video footage shot from on-board Japan SailGP as their courses intersected with USA SailGP on Leg 3 of Race 4 of Day 2 of SailGP Bermuda. Nathan Outteridge describes how it unfolded. Posted on 26 Apr
ACHof: Induction of Peter Montgomery and Ed Baird
America's Cup Hall of Fame: Induction of Peter Montgomery and Ed Baird On March 19, 2021, just a couple of days after the Emirates Team New Zealand successfully defended the America's Cup, the America's Cup Hall of Fame held an Induction Ceremony to welcome broadcaster PJ Montgomery and America's Cup winner Ed Baird Posted on 22 Apr
America's Cup: Luna Rossa's control systems outed
AC36 Challenger Luna Rossa explain how their systems work and the rules that govern their use Handling a boat like the AC75 requires the use of sophisticated management and control systems actioning a compact network of valves and pistons. Here Luna Rossa explain how their systems work and the rules that govern their use Posted on 14 Apr
Coutts more confident of SailGP Bermuda proceeding
SailGP needs COVID dispensations for Bermuda event to proceed on schedule Russell Coutts, CEO of SailGP has told Bermuda Tonight that he is more confident of the first regatta in the 2021 circuit getting underway as scheduled, despite there being only 10 days left until the scheduled start on April 24. Posted on 14 Apr
SailGP: Bermuda goes into seven day lockdown
Bermuda will enter a "shelter at home" policy, ending after the start of SailGP Round 2 It has been announced in Bermuda that the island will enter a "shelter at home" policy for the next seven days at least. The Premier says no exceptions will be made for SailGP for training or racing. Posted on 12 Apr
36th America's Cup put under the microscope
The international broadcast team for 36AC give their take on the breakpoints of regatta Key moments and analysis on the 36th America's Cup. This includes several interviews with key team members on their recollections of some of the more spectacular incidents, which were glossed over at the time due to the pace of the event. Posted on 10 Apr
America's Cup: Gulf Wars - your record of 36AC
A souvenir record of the regattas of the 36th America's Cup is now on sale across all regions A souvenir record of the regattas of the 36th America's Cup is now on sale in New Zealand, and available internationally published just over a week after racing concluded in the 36th America's Cup. Posted on 31 Mar
America's Cup: Two feet
A unit of measurement, avatar and a couple more often helpful in sailboat racing It can be a unit of measurement. Also the very extremities you use for balance when standing up. Then on March 5 this year, we saw that they can even belong to an avatar assisting you and your cause via reinforcement learning. Posted on 28 Mar
Henri-Lloyd 2021 M-PRO PURE BLACK - FOOTERSavvy Navvy 2021 SW FOOTER v2McConaghy Boats 2021 - FOOTER