Please select your home edition
Edition
Henri-Lloyd Dynamic Range

America's Cup: Arb Panel dismisses American Magic request to be excused from Jeddah regatta

by Richard Gladwell/Sail-World.com/nz 30 May 2023 05:24 PDT 30 May 2023
Patriot sails past the American Magic team base - AC75 - January 18, 2023 - Pensacola, Florida © Paul Todd/America's Cup

The three man Arbitration Panel has dismissed the Application by the New York Yacht Club's team American Magic to be excused from participation in the second Preliminary Event, part of the 37th America's Cup.

The regatta for AC40 One Design yachts is to be sailed in Jeddah, Saudi Arabia from November 30 to December 3, 2023, between the six teams entered in the 2024 America's Cup due to be sailed in Barcelona.

“The Arbitration Panel dismissed the Application (Case 004) saying it was a matter for the Challenger of Record and Defender (COR/D) Emirates Team New Zealand representing the Royal New Zealand Yacht Squadron and INEOS Britannia representing the Royal Yacht Squadron. COR/D, in their submissions opposed the Application being granted.

The US team made its Application to be excused as it believed that its team members' safety was at risk in Saudi Arabia.

In its decision, released on May 28, 2023 the Arbitration Panel effectively turned the matter over to COR/D to hear the matter.

"The Application is dismissed. When COR/D makes a decision on whether or not to excuse American Magic (AM) from participation in the Second AC37 Preliminary Regatta in Jeddah, if AM considers such decision to be not in accordance with the Protocol, AM may make a new application to the Panel. Such decision by COR/D must be "on reasonable grounds". Such (a) test is subjective," the Arbitration Panel noted in its Decision.

Should the Application to be excused from participation, fail at both the COR/D and Arbitration Panel level, and American Magic decides not to participate in the Jeddah regatta, then COR/D can make an application to the Arbitration Panel for penalties to be applied.

"Equally, Article 10.2(a)(i)(B) of the Protocol entitles COR/D to apply to the Panel "to impose such financial penalty it considers appropriate" should COR/D not excuse AM from attending the Second AC37 Preliminary Regatta in Jeddah. What is "appropriate" is within the Panel’s discretion," the Arbitration Panel noted.

The Arbitration Panel said: "If AM wishes to raise new matters of interpretation relating to the issues raised in Case 004 then AM may make a new application to the Panel. AM should note however, that if it makes an application to the Panel seeking to advance the matters raised in paragraphs 6 to 14 inclusive of its Reply dated 22nd May 2023, prior to COR/D making its decision, for the reasons set out above the Panel would need convincing to deviate from its current position."

The Arbitration Panel commented on the reporting of the Application, primarily in the New Zealand mainstream media, ahead of the Application, with one outlet claiming to have a 21 page document in its possession. Surprisingly, despite the team denials, one NZ mainstream media outlet repeated their claim, today, that they had the 21 page document on May 16, 2023.

"On 16th May 2023 it came to the attention of the Panel that there may have been a breach of the confidentiality obligation provided for in Article 67.12(b) of the Protocol in respect of disclosures to outside persons (in this case the media) concerning this Case 004," the Arbitration Panel wrote.

It then requested each team including the COR/D to investigate whether the leak to the media had come from within their team. Each replied individually to the Arbitration Panel denying that any of their team/members had communicated with the media. The denials to the Arbitration Panel, along with the media and other instances of individual document possession, call into question the integrity of the teams as a group and their respect for the Arbitration Panel, and judicial process. It is not possible that multiple copies of the 21 page document just appeared out of thin air.

"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," the Arbitration Panel recorded in its Decision.

"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 Panel notes that significant penalties can be imposed by the Panel under Article 67.4 of the Protocol for breaches of confidentiality," the Panel added.

American Magic was ordered to pay costs of €14,500.

The full decision can be read by clicking here

Related Articles

America's Cup: Luna Rossa to sail for Naples club.
Italian Challenger Luna Rossa will contest the next America's Cup as the team of a Naples club. Italian Challenger Luna Rossa will contest its seventh America's Cup as the team of the Circolo del Remo e della Vela Italia of Naples, as club that is new to the America's Cup. Posted on 10 Jul
America's Cup: French back "Kiwi" Protocol
K-Challenge tell Brits to sign Kiwi Protocol. Cup to be sailed before the end of 2025. Last weekend's missive from the French America's Cup challenge team is further evidence over the building frustration with progress towards the 2027 America's Cup in Naples. Posted on 6 Jul
K-Challenge gives opinion on proposed Protocol
Why the 38th edition could usher in a new era for the America's Cup Stephan Kandler and Bruno Dubois, Co-CEOs of K-Challenge, jointly stated: “The provisional Protocol published on 23 May 2025 by Defender Emirates Team New Zealand is an important step forward for the America's Cup." Posted on 4 Jul
America's Cup: Confidential settlement reached
(Updated) A confidential settlement reached over five year Cup legal claims. Confidential settlement reached between the America's Cup team Emirates Team New Zealand and their formerly contracted Event Managers, Mayo & Calder, and others associated with the company. But what of Mainstream Media's role in the affair? Posted on 29 Jun
America's Cup - #3 Finish Line
The Cup is still undecided. And somewhere, in one last simulation, the universe holds its breath. The Cup is still undecided. And somewhere, in one last simulation, the universe holds its breath. Step into the last leg. This is where legends break — or rise. Posted on 23 Jun
Cup Spy: "Burling Rule" unlikely to be changed
The Defender is unlikely to soften the Rules and allow open season on its sailing team. Despite the shift of three times America's Cup winner, Peter Burling it is understood that there is unlikely to be any softening of the Nationality rule to enable Burling to get any closer to the action than a chase-boat in the 38th America's Cup. Posted on 20 Jun
Burling "excited' by Italian move
In a media statement issued by his Media Team, Burling says he remains fully committed to his role w In a media statement issued by his Media Team, Burling says he remains fully committed to his role with Black Foils, the New Zealand SailGP Team. Posted on 20 Jun
America's Cup: Kiwis advertising for key people
Emirates Team NZ seeking new people for key roles ahead of its 12th America's Cup campaign Emirates Team New Zealand, the current America's Cup champion is gearing up for the 2027 Defence of the most prestigious trophy in sailing. The team has advertised eight positions in the IT, Meteorology and Engineering areas Posted on 12 Jun
America's Cup: Another sponsor signs for Italians
Luna Rossa has announced that Unipol has renewed its trust in the team Luna Rossa has announced that Unipol has renewed its trust in the team and will accompany it as an official sponsor for the duration of the 38th America's Cup. Posted on 5 Jun
America's Cup fillibustered by Challengers
A Cup in turmoil - Protocol is unsigned - with entries due to open on Sunday. Updated story: America's Cup got underway in Rome on Monday, with Round 2 of the official welcoming ceremonies on Wednesday in Naples. However three teams are working in collusion and have again issued statements within minutes of each other. Posted on 29 May
Henri-Lloyd Dynamic RangePalm Beach Motor YachtsSelden 2020 - FOOTER