The other war: the AC saga

Emirates Team New Zealand continue preparations for AC38. Credit: America’s Cup Media

This feature article originally appeared in AFLOAT Magazine and forms part of our latest edition of boating features exploring the America’s Cup, AC38 and international yacht racing.

Let’s start with the venue. None of the previous Cup hosts could be conned into signing up for another regatta. You can’t blame them. Despite all the puffed-up claims of financial gain from being the ‘home’ of the America’s Cup, the real bottom line has probably always shown a cash deficit. And the locals haven’t appreciated paying taxes to support flashy single-use infrastructure and an influx of well-paid sailors and their camp-followers.

Naples are the suckers for 2027. So far, with just a year to go before racing is scheduled to begin, there’s little to show. The local construction contractors aren’t famous for meeting their deadlines, or budgets. The Bay of Naples where the racing will be staged is beautiful but the teams’ site at Bagnoli has one of Italy’s most polluted waterfronts. That land previously housed a steel mill, cement factory and an asbestos plant. Initially, the planned remediation called for the removal of a million cubic metres of toxic landfill. AC Race Director, Iain Murray, has now announced that the preliminary regatta scheduled for June has been postponed indefinitely because the construction work at Bagnoli is behind schedule.

Challenger of Record

The next potential train-wreck concerns the Challenger of Record, Royal Yacht Squadron/Athena Racing (now re-branded as GB1). The RYS team, INEOS Britannia (funded by UK petrochemical billionaire Sir Jim Ratcliffe), lost 7-2 to the Kiwis in Barcelona in 2024. They are training in a pair of AC40s and were gung-ho to have another crack; that is until January 2025.

The seven-year partnership between Ainslie and Ratcliffe fell apart. They were at each other’s throats about ownership and control of the team’s assets. In April, INEOS withdrew from the Cup, leaving Ainslie with the Athena team and (he claimed) its assets – but no funding. The argument over who owned the $180m AC75 boat and the supporting equipment and IP resources became a six-month negotiation. Ainslie meanwhile secured some financial backing from Oakley Capital, an investment corporation that includes the North Sails group and Southern Spars.

But the negotiations failed. Ratcliffe is now suing Athena for the return of the AC75 and its associated equipment and IP. Announcing their lawsuit, an INEOS media release on March 22 declared that “INEOS is surprised that the boat we built for the last America’s Cup has been taken by Athena Racing. The boat belongs to INEOS and it is inappropriate to assume it can be used for the next competition without seeking our permission.” Ainslie hit back the same day with his own statement, saying “It should come as no surprise to INEOS that assets which are owned by, and have always been in the possession of Athena Racing are being used for AC38.”

No doubt Ratcliffe’s argument in court will be that as his corporation paid for the boat, they own it, and it should be returned to them. If INEOS wins that case Ainslie has little hope of securing another boat in time (let alone modifying it to meet the new class rules). Without a boat, and full funding, he would have to surrender the RYS/GB1 role as Challenger of Record.

Favourites

Next in line as CoR would be the Circolo della Vela Sicilia/Luna Rossa Prada Pirelli syndicate. The Italians have been at this game since 1997 and know all the angles. Naples will be their sixth campaign and, with the addition of Peter Burling to the team, they are clear favourites to take on ETNZ for the Cup. After their elimination in AC37, Luna Rossa’s huge, lavishly funded operation went straight into preparation for Naples. They have a significant ‘home court’ advantage, plus an excellent design and construction team. A recent video tour of their facilities and extended interview with the CEO showed how well-prepared and determined they are to displace New Zealand as the America’s Cup champions.

As usual, there is a gaggle of lesser syndicates still in the running who, if they even manage to put together a boat and team, will probably serve no greater purpose than to make up the numbers during the elimination series. Entries closed on March 31 (although latecomers could join the party by paying a substantial extra fee). Here’s the current roll-call of the known, and hopeful, challenging nations:

• The British (GB1)
• The Italians (Luna Rossa)
• The Swiss (Tudor Team Alinghi)
• The French (Originally K-Challenge but now La Roche-Posay)
• The Americans (But not American Magic)
• The Australians (Slingsby/Ashby)

Aussies

Riptide Racing, an unknown US syndicate, pulled out in April citing lack of funding. There are also faint, unconfirmed indications of a second Italian challenger. The experienced American Magic operation withdrew early, hinting that their objective is now AC39. They do, however, retain a significant stake in the current Cup circus. They own three AC75s and, under the new Protocol, all syndicates must either campaign a modified existing boat, or build what would essentially be a replica. So, acquiring one of American Magic’s AC75s is about the only practical option for any late-starting US team.

Enter, the cumbersomely-named American Racing Challenger Team USA. This is a curious last-minute syndicate funded by Karel Komárek, a 57-year-old Czech billionaire who has appointed veteran American yachtsman Ken Read to run the campaign. They have bought (or maybe just leased) a boat and facilities from the American Magic operation. But, with just a year to complete the required modifications, assemble a crew and establish a base in Naples their chances of making much impact seem slim. Those same issues would confront Slingsby and Ashby. But, looking on the bright side, if they secured a boat and enough funding to compete, theirs would be the first Australian challenge for the Cup in 25 years.

Defenders

Meanwhile, the Kiwis are cruising along quite nicely, although their Emirates Airways sponsorship must have seemed a trifle wobbly when Iran began lobbing missiles into any nearby country that wouldn’t support the Ayatollahs. ETNZ have been test-sailing their boat in New Zealand for more than a month and enjoy the significant benefits of having set the class rules and racing conditions for AC38. So, it looks like plain sailing for Grant Dalton & Co, except that (as Afloat reported in April) John Sweeney, an American yachtsman, entrepreneur and Cup veteran, has filed a formal complaint with the New York Attorney General which asserts that the America’s Cup, as currently conducted, is illegal. The substance of his case is that the boats, and the way the event is sailed and managed, contravene the Deed of Gift. It is, of course, unlikely that the New York Supreme Court will order everyone back to the original 1851 rules. The Deed has been modified in the past, and there is also leeway for the event to be contested under conditions of ‘mutual consent’. Sweeney’s real point is that the Cup belongs to the nations, the clubs, and the sailors – not to a commercial consortium such as the recently-formed ‘America’s Cup Partnership’. A thoughtful judge with a sense of sporting history might even agree.

Finally, consider this scenario: if the British fail to mount a campaign, then Luna Rossa becomes the Challenger of Record. They, in turn, might insist on some form of Deed of Gift Series (or be compelled to that format by a New York court ruling). That could be a simple best-of-three races contest – Challenger v. Defender – with no preliminary regattas. Unthinkable? It happened in 1988 and 2010.

This feature article originally appeared in AFLOAT Magazine. To explore more stories like this, browse the AFLOAT Magazine archive or view the latest edition of AFLOAT Magazine.