NY judge hears arguments over America’s Cup sailing rules

The Golden Gate Yacht Club argued in court Monday that the Swiss winners of the 2007 America’s Cup have been trying to rig the rules of next year’s race to help their chances of winning again.

The Swiss group, Alinghi of the Societe Nautique de Geneve (SNG), won the world’s premiere sailing prize in July in Valencia, Spain _ defeating Emirates Team New Zealand 5-2 in a best-of-nine match.

According to the “deed of gift” rules of the 155-year-old race, the winner gets to pick the next challenger of record, and the two groups establish the rules for the next race.

The Golden Gate Yacht Club argued in Manhattan’s state Supreme Court Monday that Alinghi-SNG chose Club Nautico Espanol de Vela (CNEV) as the challenger of record so Alinghi could set rules in its favor for the 2008 race.

The problem, said Golden Gate’s lawyer, James V. Kearney, is that CNEV is not a yacht club, as the rules require, but a federation of yacht clubs.

Kearney also said the Spanish group has never held a sailing regatta _ or race _ as the deed of gift requires, and therefore is not a qualified challenger.

The Swiss group also has refused to reveal anything about the next race, Golden Gate complains.

“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,” Golden Gate’s court papers say.

Golden Gate and its key racing syndicate, BMW Oracle, backed by software billionaire Larry Ellison, sued Alinghi-SNG in July. Cup rules specify that legal disputes be settled in New York state courts.

“The question is,” Kearney told Justice Herman Cahn, “whether SNG will be required to abide by the Deed of Gift or be allowed to sell or rent the America’s Cup to a convenience entity that is not a yacht club.”

David G. Hille, lawyer for Alinghi, told Cahn that Golden Gate’s problem is that it wants to be the challenger of record for the second time, but a qualified challenger for the 33rd America’s Cup race _ CNEV _ already exists.

Cahn did not immediately issue a decision.

Hamish Ross, Alinghi’s general counsel, said outside court that his group has offered so many concessions to satisfy Golden Gate and BMW Oracle that “the table is groaning.” He said his group is waiting for a reply.

Ross said the concessions were made “in response to the untrue claim that we’ve already designed the boat.”

So far five competitors have signed up for the 33rd America’s Cup: new British group Team Origin, South Africa’s Shosholoza, Team Germany, CNEV’s Desafio Espanol group, and Team New Zealand.

Golden Gate has resisted signing up, saying they want to know what the protocols are first.

Associated Press