Oracle contests, Louis Vuitton takes leave

After the nautical games, the verbal and legal games have started. A couple of days after the end of the 32nd America's Cup, and the announcement of a new Protocol, the shields have been raised. The Golden Gate Yacht club of San Francisco, the yacht club representing Oracle Racing, Thursday 12th July, has personally handed a letter to the President of Société Nautique de Genève, contesting the validity of the Spanish yacht club chosen as “Challenger of Record” and puts into question the protocol for the 33rd edition announced by ACM.


According to the Americans, the le Club Náutico Español de Vela (CNEV), created in the aftermath of Alinghi’s victory allowing the Spanish to become Challenger of Record, "doesn't answer to the requirements of the Deed of Gift", the founding rule of the America's Cup. Written in 1857, the Deed of Gift requires in effect that the "Challenger of record" organizes a regatta each year on open seas: “The CNEV has never organized a regatta and there cannot be a legitimate challenger” affirmed the American Yacht Club. Adding furthermore, “ the ‘Challenger of Record’ has not performed any of the duties of the Challenger as contemplated by the Deed of Gift, but has simply delegated to the Defender the authority to determine all of the ‘conditions’ governing the match.


In the yacht club press announcement, “Challenger of Record” of 2003 to 2007 for the 32nd edition, explained that the new Protocole “scoffed at the challenger’s rights” and gave total control of the event and rules to the Defender Alinghi.


“The Golden Gate Yacht Club which represents Oracle, expressed therefore that the Challenge presented by the Spanish is invalid and therefore presented their own challenge to the Société Nautique de Genève, representing Alinghi, in July 2008. It is a prickly affair. The Defender is in effect obliged to accept the first bona fide challenge which it is presented, based on the rules of the America's Cup, "a perpetual trophy between nations". Two cases of importance therefore: either the Spanish challenge is valid and the Americans must enter into the challengers, or the Spanish challenge is invalid and therefore it is the Swiss who must answer the American challenge! It is probable that the affair will be arranged in front of the Supreme Court of New York, judged to be competent with the rules of the America's Cup.


For their part, Louis Vuitton sent out a press release this morning to announce the end of a quarter century of partnership. Louis Vuitton, founded in 1854, just three years after the original America’s Cup race, has since charted a course parallel to that of the world's oldest sporting trophy.


The French luxury house became, in many ways, the "guardian" of the Cup, lending its name to the official Challenger selection series, the Louis Vuitton Cup.


In organizing this prologue to the America's Cup, Louis Vuitton contributed over more than 20 years to the international reputation and aura of the competition.


Values of elegance, friendship, loyalty and exclusivity, a unique blend of tradition and innovation, also set the Louis Vuitton Cup and the America’s Cup apart in the world as events that combined sporting excellence and art de vivre.


The new America's Cup rules define a more commercial approach, and the signed protocol has already been questioned by some of those concerned. Indeed, there is a risk of a significant reduction in the number of participating teams.


In these conditions, Louis Vuitton has decided not to lend its name to the next Challenger selection series. It will follow with interest the future development of the competition, while not excluding the possibility of reviving the Louis Vuitton Cup in another form.


It is enough to say that things will be quite active in the days to come. A suivre …



Fdb/LH- 13 July 2007.