The Bosun outlines the backstory of the latest AC dispute
(We love that, per usual, all the action in the AC is the legal wrangling, posturing, bullshit, egos, and utter nonsense. Assuming there will even be an AC, the “racing” will be a nice break from the manufactured drama. But we have no doubt that the conclusion of the Cup will also see a predictable return back to the courts. Everything is awesome! – ed)
The legal questions raised by the New York Yacht Club about the standing of the America’s Cup Partnership in relation to the Deed of Gift have certainly upset the apple cart. But while that move might seem provocative it was not an ambush. In fact, as those who’ve followed this saga for years will recognise, it’s been a long time a’coming.
There was trouble right from the start. As early as May 2021 the NYYC was expressing its reservations about how the Cup had evolved.
The then Commodore, Christopher J. Culver, didn’t pull his punches, saying: “The New York Yacht Club, as the original trustee of the event, has serious concerns about the history of this great competition. The cost of a competitive campaign, the lack of continuity in the class and the inability to plan beyond the current cycle have combined to create a prohibitive barrier to entry.”
The NYYC proposed that the Cup should have “enhanced and independent event management”. But that suggestion fell on deaf ears. There was no way Grant Dalton and the Cup inner circle were going to surrender their control over the event and its revenues.
After the last Cup series in 2024 immediate tensions surfaced between the Defenders and the intending syndicates. There were delays in finalising the Protocols, confirming the site, and no agreement reached on the terms of the proposed America’s Cup Partnership. Athena Racing and NYYC/American Magic both issued media releases – on the same day – with essentially the same message: the Defender has not been cooperative, or transparent, in its negotiations to settle the Protocol. Those key words – “transparency” and “cooperation” – featured in both releases.
By now it was clear that the nabobs of W44th Street did not like being taken for granted. By October 2025 the NYYC/American Magic syndicate had withdrawn their entry for AC38.
So why, if they are not participating in the Naples series next year, have the New York Yacht Club still taken their concerns to the Attorney General? Probably because, as founding trustees of the America’s Cup, they feel an obligation to ensure it complies with the terms and traditions of the Deed of Gift which created the event.
The status of the Cup as a legal entity has always been something of a mystery. What, precisely, is it? Who owns and controls it? For how long? On what basis does it become a property that individuals and corporations can exploit for their own commercial benefit?
As it stands, the Cup has now been appropriated by an incorporated business, the America’s Cup Partnership. The defending and challenging clubs are mere ciphers. The venue is sold to whichever city is prepared to pay millions for the privilege. Even the naming rights to the Cup have been sold. You don’t need to be a high-priced lawyer to see how all this might not sit too comfortably within the terms of the Deed.
There are further issues that must trouble the NYYC. Do new challengers have to buy their way into the partnership? At what fee? Are departing teams entitled to a share of accumulated ACP funds at the end of a series? Conversely, must they help meet any losses? It would be fascinating to read how the ACP agreement deals with those issues, but that document has not been made public.
Finally, if the New York Attorney General sides with the NYYC there is one possible – but unlikely – outcome. She might direct that next year’s series in Naples contravenes the Deed and, as such, cannot call itself the “America’s Cup”. Nor could the prize for that contest be the actual 1851 trophy. Louis Vuitton would find themselves the sponsors of… nothing.
If that came to pass there’s no doubt the club members, as they swilled their brandy balloons after dinner in New York, would delight in reminding each other of the 18th century French proverb La vengeance est un plat qui se mange froid – “Revenge is a dish best eaten cold”.
The Bosun
