“You’re so Vain”…..and you know who you are.
You’re both so vain, you’ll probably think this story is about you, and unfortunately you are right. The old adage holds true that two wrongs don’t make a right.
So here we are with an apocalyptical nightmare America’s Cup scenario that appears to be deadlocked in an insurmountable ego driven bypass.
On one hand, there is Alinghi President Ernesto Bertarelli, whose team defended the America’s Cup last summer for the Society Nautique de Geneva (SNG) and who is trying to force his vision forward by usurping, for the most part, the mutual consent provision of a new protocol for the 33rd running of the world’s most prestigious yacht race.
On the other hand is Larry Ellison, the founder and chairman of Oracle. His racing team BMW Oracle had perhaps the fastest AC Class Version 5 boat in Valencia, Spain, but was virtually swept away in five of 6 races against Luna Rosa from Italy. Ellison’s team represented the Golden Gate Yacht Club and was the Challenger of Record, until they were eliminated.
After Alinghi defended the ‘Cup in seven exciting races in probably the best America’s Cup ever, they brought in a challenger of record (COR)from Spain to sign off on Bertarelli’s vision for the next America’s Cup. Unfortunately, the new club had not fulfilled its minimum obligations to qualify as pro bono COR.
According to the strict terms of the Deed of Gift, which governs the rules, by which the America’s Cup can be challenged for the COR has had to have conducted an annual regatta and had to have been an established yacht club from a proprietary standpoint. This differs from merely being able to challenge for the ‘Cup. The COR is held to a higher standard.
BMW Oracle objected to the new protocol for the next race and submitted a challenge for the America’s Cup to the SNG. When the challenge was rejected, the GGYC filed suit in the New York Supreme Court, to invalidate the Spanish challenge. The court is bound by the Deed to arbitrate all disputes relating to the America’s Cup Trophy, which is held as a charitable trust by the State of New York.
On November 27th, the Honorable Judge Herman Cahn ruled in favor of the Golden Gate Yacht Club (GGYC) and declared them to be the true challenger of record. Alinghi and SNG are now challenging(not as yet appealing) the ruling and those arguments will be heard in court on January 14th, before Judge Cahn orders his decision.
Prior to that, BMW Oracle submitted nine amendments to the protocol and has support of most of the other seven challengers at this point. By in large, Bertarelli’s original vision for the protocol of the 33rd America’s Cup remains intact.
There is agreement on the new 90 ft. AC boat, the defenders are allowed to sail in the regatta; the dates, venue are unchanged and other than egos, the remaining point of contention would appear to be the 2 boat issue. In spite of Alinghi’s contention, this has little to do with sour grapes on Ellison’s part and more to do that many on his team are very well versed and rehearsed on rules that regulate the America’s Cup.
In order to keep costs under control, Bertarelli wants to limit construction of the new ‘Cup class and the inherent expense escalator of 2 boat testing. BMW Oracle has countered with crew limitations and a moratorium on when the yachts can sail against each other. But, Bertarelli has so far refused to compromise and here we are.
Controlling costs is a noble pursuit, but the America’s Cup is the grand dame of all the balls and should differ from the atypical American professional sports leagues, where ownership has had to embrace a socialistic manifesto to keep the lesser franchises afloat. If it is imperative to have the lesser funded teams from countries like Britain, South Africa and China onboard, then institute a hard line “salary” cap to keep the billionaires in check.
During the 32nd America’s Cup the speed gap between the top and bottom had narrowed to the point, that a majority of the teams were very competitive. The problem with the ‘Version 5” was that the high tech design teams were spending millions for milliseconds and now the rule makers have, hence forth regulated a very competitive America’s Cup Class boat into extinction.
In this impasse the devil is not in the details, it largely involves the party’s inability to negotiate and compromise. No, Washington DC has not challenged for the ‘Cup of late, but it seems like the air and attitude of our nation’s capital has rubbed off on the Auld Mug.
Parlay, anyone?
