SailJuice Blog

The Golden Gate Yacht Club have moved a step closer towards getting the America’s Cup dispute with Alinghi heard in court. Here is the GGYC statement in full.

The Supreme Court of the State of New York today granted an order sought by the Golden Gate Yacht Club (GGYC) requiring the Société Nautique de Genève (SNG) to promptly answer a request to speed up the legal process for resolving its proposed new rules for defending the next America’s Cup.

The San Francisco club sought the Court ruling alleging SNG is in serious breach of its fiduciary duty under the Deed of Gift that governs the Cup. It says SNG has accepted an invalid challenge from a sham yacht club, and is seeking to impose an unprecedented one-sided set of rules that hugely favor the defender to the detriment of all other competitors.

“We are very pleased with this ruling by the Court, because we believe the Cup will be irrevocably damaged if we don’t get SNG’s Protocol changed,” Tom Ehman, Head of External Affairs for BMW ORACLE Racing, the US club’s team, said.

“The new Protocol would give SNG’s team, Alinghi, radical new powers to control nearly all aspects of the event that are still unsupported by any explanation from SNG as to why they are needed,” he said.

Ehman said the syndicate whose challenge had been accepted by SNG, the Club Náutico Español de Vela (CNEV), was a shell organisation that had been formed only days prior to issuing a challenge and did not comply with the terms specified by the Deed of Gift.

“We would still prefer to negotiate a solution outside the court, but we see SNG as violating its responsibilities as Trustee, and we are fully prepared to go the legal distance if needed to stop the America’s Cup being subverted into a hopelessly one-sided event,” he said.

The Deed of Gift that protects the Cup as a perpetual sporting challenge is governed by a fiduciary trust established under New York law in 1887.

The GGYC court action also seeks a preliminary injunction to obtain critical information related to the club’s challenge under the Deed of Gift.

The American challenge is for a race next summer under the Deed’s 10-month rule. GGYC need to know where SNG intends to hold that competition and what the SNG sailing rules are. Under the Deed, the Swiss Defender is required to provide these important details to the Challenger.

GGYC filed a challenge on July 11th, and asserts that SNG must accept it. If successful in this motion, the GGYC case could be heard by the Courts as early as October 2007.

The Golden Gate Yacht Club has counter challenged the Spanish Challenge of Record, claiming the Club Nautico Espanol de Vela’s challenge to Alinghi is illegal.

I don’t know if the Spanish challenge is illegal or not – I’ll leave that argument to the laywers – but it was certainly spineless. By accepting the one-sided Protocol laid down by Alinghi last week, Desafio Espanol has effectively admitted that it has no real desire to win the 33rd America’s Cup. It is merely happy to be a participant, whilst handing Alinghi the tools for a 5-0 whitewash.

The Spanish team is to be applauded for having reached the Semi Finals of the recent Louis Vuitton Cup, but it appears that is the limit of its competitive instincts. In its desire to keep the Cup in Valencia it seems Desafio Espanol was prepared to sign almost anything that Alinghi demanded. The Spanish have sold the challengers down the river.

Today, BMW Oracle’s home club in San Francisco, the Golden Gate Yacht Club, sent its counter-challenge to the Societe Nautique de Geneve. The GGYC commodore Marcus Young wrote: “We respectfully submit that the challenge is invalid. Among other deficiencies, it is not from a bone fide yacht club, but from an entity organized in the form of a yacht club only a few days before the challenge was accepted by SNG and which has never had an annual regatta on an open water course on the sea or an arm of the sea as required by the Deed of Gift.

“It is also apparent that this ‘Challenger of Record’ has not performed any of the duties of the Challenger as contemplated by the Deed of Gift, but has simply delegated to the Defender the authority to determine all of the ‘conditions’ governing the match. This undermines the fundamental purpose of the Deed of Gift to preserve this competition as a Challenge Cup.”

And here’s the fun part.

The dates: “We name 4 July 2008 as the date of the first race, 6 July 2008 and 8 July 2008 as the dates for the second and, if necessary, third races.”

And here are the vital statistics for the boat:

Rig: single-masted, sloop-rigged

Dimensions:

Length on Load Waterline – 90 feet

Beam at Load Waterline – 90 feet

Extreme Beam – 90 feet

Draught of water (hull draft) – 3 feet

Draught of water (boards down) – 20 feet

So, a 90-foot catamaran perhaps, or a 90-foot trimaran, or what about a 90-foot skiff with trapeze wings spanning 90-feet from side to side? To be held somewhere in the northern hemisphere in just less than a year.

Plainly the proposal is ludicrous, but in so doing the GGYC has highlighted just how ludicrous some elements of the original Protocol document are. Take, for example, the fact that the Defender has granted itself the right to compete in every stage of the Challenger series, with the exception of the finals. Oh right, OK, so with the one-boat rule that is being mooted, that would mean the challengers’ boats are committed to three months of hard racing, with no opportunity for testing or development. Meanwhile the Defender is free to compete for a few races, assess relative speed against the challengers, then withdraw for a spot of chainsaw surgery and then enter a later stage of the Challenger series a couple of weeks further down the line. Rinse and repeat until boat is faster. How very convenient.

The Club Nautico Espanol de Vela was quick to issue a rebuttal to the GGYC’s shot across their bow, protesting the validity of the original challenge, and assuring everyone that the Protocol guarantees a fair fight for one and all. With thanks to James Boyd’s translation of the original Spanish text on The Daily Sail: “We want to emphasise that the spirit which has presided over the negotiations with the Defender on the part of the CNEV has been one to create a transparent competition that is right and equitable for all the participants and for which joint instruments of management have been created which we hope contribute to a greater agility and effectiveness in the development of the next event.”

Phew, that’s a relief. Back to your beds and rest easy. The Spanish have got it under control. “Thanks for your concern, GGYC, but we’ll take it from here.”