RAK dealt final blow in yachting saga

Swiss billionaire Ernesto Bertarelli has lost the bid to host the cup in RAK.[Getty Images]

BY REUTERS

A New York appeals court on Tuesday rejected a bid by the defending America's Cup champion, Alinghi of Switzerland, to hold the world's most prestigious yachting race in the UAE.

The New York State Supreme Court's appellate division in Manhattan made it almost certain Valencia, Spain would host the 33rd racing of the America's Cup next year, and it marked a possible end to a more than two-year legal battle over the terms of the race.

The Alinghi team, which sails under the colors of Societe Nautique de Geneve (SNG) and is backed by Swiss billionaire Ernesto Bertarelli, said in a statement after the ruling it looked forward to racing in Valencia in February.

Story continues below

Alinghi previously wanted the race to be held in Ras al-Khaimah in the UAE in February or May, citing ideal sailing conditions as its justification.

But California-based challenger BMW Oracle, which sails under the Golden Gate Yacht Club colors and is backed by Oracle Corp (ORCL.O) Chief Executive Larry Ellison, objected to the choice, saying it was unfair because it was transporting equipment to Valencia.

"This is a big stride forward. In place of doubt and delay, the sailing world wants certainty. It wants to see this contest to go ahead soon and be contested under fair rules," Tom Ehman, a Golden Gate spokesman, said in a statement.

Defending champions are normally entitled to name the site for the next race as long as it meets America's Cup rules.

But according to the Deed of Gift — the document that established those rules — races held between November and May must take place in the southern hemisphere.

Although Spain, like the UAE, is in the Northern hemisphere, Valencia has been deemed acceptable because it was the site of the previous race in 2007.

In 2009 the New York State Supreme Court ruled the UAE choice violated the rules, a ruling that prompted Alinghi to offer Valencia as a substitute before it reversed course and settled on the UAE again.

The appeals court on Tuesday reinstated that ruling.

"Once again BMW Oracle's strategy to try to win the America's Cup in court instead of on the water has been successful. For the first time in the history of the America's Cup the defender has been stripped of its fundamental right to select the venue," Fred Meyer, SNG's vice-commodore, said in a statement.

"Societe Nautique de Geneve accepts this decision and Alinghi is looking forward to racing for the America's Cup on the water in Valencia, Spain, in February 2010," Meyer said. (Reuters)