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IT'S VALENCIA AGAIN IN 2009
25 July 2007

At a press conference this evening (Wednesday 25 July) attended by Francisco Camps, Rita Barberá and Ernesto Bertarelli, Michael Bonnefous of America’s Cup Management confirmed that Valencia had won the right to host the 33rd America’s Cup in 2009. The news was announced outside the Press Centre and was emphasised with a vigorous mascleta which ended with 33 maroons being fired into the evening sky. Francisco Camps, the Regional President welcomed the commitment from Team Alinghi and praised Valencia’s Alcaldesa, Rita Barberá for the enthusiasm and dedication she had brought to the task of making the city ready for such a major event. Ernesto Bertarelli confirmed that he had recognised a spirit in the city council that inspired his confidence. He went on to explain his reasons for the contentious new protocol for the next America’s Cup and confirmed that three teams, apart from Desafío Español, had submitted challenges: Shosholoza from South Africa, Britain’s Team Origin and Team New Zealand. His displeasure at the court case brought by Larry Ellison was clear as he said: ‘He (Ellison) is hoping to win in court what he failed to win on the water’. He concluded by announcing that he had nominated an independent arbitration panel to examine the protocol.

The Alcaldesa attempted to calm the atmosphere by inviting BMW Oracle to return to Valencia. The floor was then opened up for questions. When asked if BMW Oracle would still be welcome as a challenger even if Ellison lost his case in the US Supreme Court, Bertarelli said: ‘this is a day for celebration, a day for commitment, not (and I hate to say it) for bullshit’. Francisco Camps said a few calming words and the conference was at an end.

COUTTS JOINS BMWORACLE
25 July 2007

Five months ago, in an article entitled ‘All you need to know’ I wrote: ‘The weirdest thing about this whole event is that New Zealander Russell Coutts (44), acknowledged as the best match-racing sailor in the world, will not be able to take part! Coutts had fallen out with his boss Ernesto Bertarelli of Alinghi and had left the team just eighteen months after steering Alinghi to victory in 2003. His contract prevented him from signing with anyone else so Russell was forced to watch from the sidelines. Yesterday, at a press conference in Valencia, Larry Ellison of BMW Oracle introduced Russell Coutts as his new skipper and CEO. The New Zealander looked fit and relaxed as he talked about his new job, saying: ‘It will be great to get back in the Cup. I enjoyed watching the last event – but I look forward to getting back on the water’. The announcement of Coutts’ appointment comes amid the gathering storm of controversy over Team Alinghi’s apparent attempt to gain total control of the America’s Cup series. Ellison had a meeting earlier in the day with a number of other potential challengers and one of the points discussed was the fact that the new protocol gives Alinghi sole discretion to throw out any challenger they don’t like for any reason.

The present position as laid out by Larry Ellison appears to be this: if the Americans win their case against the Swiss, then Alinghi will be forced to defend the Cup against BMW Oracle within ten months (May 2008) as laid out in the original Deed of Gift. If BMW Oracle win that series, Ellison has stated in public that he would hold the next Cup Series in Valencia in 2009. If Alinghi wins the case, Ellison is doubtful whether Bertarelli would accept a challenge from BMW Oracle.

These are two of the wealthiest individuals in the world and they both have the resources to fight this disagreement out to the bitter end. Any chance of a swift reconciliation was dealt a setback today as Coutts’ appointment will anger Bertarelli, even though he will recognise Ellison’s logic in choosing the best people. After all, that is how Team Alinghi won the Cup in the first place. More information about Coutts’ plans to re-shape BMW Oracle will be available soon.

AFTER THE CUP
23 July 2007

On Tuesday 3 July 2007, the Swiss yacht Alinghi won the America’s Cup for the second time and almost immediately accepted Desafío España’s challenge for the 33rd America’s Cup series. Team Alinghi refused to be specific about where or when the next series would be held, indicating that it might be Valencia in 2009 if certain conditions were met, or at some other European venue (Marseilles perhaps?) in 2010 or 2011. It appears that, in return for being accepted as Challenger of Record ie the first challenger, Club Nautico Español de Vela (CNEV) agreed to Alinghi’s proposals for the next series without raising any objections. The proposals or ‘Protocol’, allow Alinghi to declare that the next series will be sailed in yachts with a 90ft waterline length (130ft length overall), take part in the Challenger Trials and do away with the independent America’s Cup Rules Committee.

The ‘deal’ has not gone down well with other potential challengers, notably Larry Ellison’s BMW Oracle syndicate. Golden Gate Yacht Club (GGYC), of which Ellison is a member, fired off an immediate counter-challenge on 12 July, declaring that CNEV fails to meet the requirements for a challenging yacht club. In their challenge document, GGYC stated: ‘The Alinghi Protocol for the 33rd Americas Cup alters the very nature of the competition giving unprecedented and unfair advantages to the Defender’.

The next day (13 July), Louis Vuitton pulled out of America’s Cup sponsorship altogether. This is the culmination of a row which has been brewing for at least two years, with Louis Vuitton feeling that the ACC series is being taken ‘down market’ by America’s Cup Management (ACM). This is hardly surprising, given that Team Alinghi’s stated aim was to make America’s Cup racing more accessible to a wider audience. Rumours are that Rolex have shown an interest in filling the huge gap which Louis Vuitton would leave.

On 19 July, Team Shosholoza from South Africa announced their challenge, which was immediately accepted by SNG. The very next day (20 July), with no reply from Team Alinghi to their challenge, Golden Gate YC fired off another broadside by filing a lawsuit against SNG in the New York Supreme Court. One of the key points in the ase states: “By refusing to disclose…the basic elements of regatta venue, date and boat design rules, there is no opportunity for a fair and equitable competition.”

According to an article published in El Mundo on 19 July, at least eight syndicates are asking America’s Cup Management to dissolve the protocol agreed with the Spanish team. They want a new protocol where all teams agree on the terms for the 33rd America's Cup.

If all this seems a bit over the top, consider this: any team that wants an outside chance of winning the cup in 2009 will have to find at least €50 million. That kind of money is only available from corporate sponsors who require certain guarantees relating to publicity and venue.

A statement is expected later this week from the Valencia City Council which should at least clear up the question of where the next Cup Series will take place. We will keep you up-dated as news comes in.

And there will be much more in the next day or so.....