Text of July Letter to the Spanish Team Signed By America's Cup Challengers
Objecting to the Protocol and Calling for Dissolution of CNEV, and Withdraw of CNEV's Challenge

The following letter was signed and transmitted to representatives of Desafío Español and Club Nautico Español in Mid-July 2007.  Seven America's Cup teams, including 2007 and  2009 challengers signed these letters which cite numerous objections on issues of fairness and competitive balance to the protocol that CNEV signed with Alinghi in early July for the 33rd America's Cup.

Teams signing (and signatories) were:
Emirates Team New Zealand (Jim Farmer)
BMW Oracle Racing (Melinda Erkelens)
Luna Rossa Challenge (Anthony Romano)
Mascalzone Latino (Alessandra Pandarese)
Areva Challenge (Dawn Riley)
United Internet Team Germany (Wolf Dietz)

Text is below and fax copies of the original documents are at the GGYC site in pdf format.

Valencia, 16 July 2007

Dear Sirs,

As you know, on this past 5th of July the document called: "The Protocol Governing the Thirty Third America’s Cup", from now on the Protocol, was published. The Protocol was signed amongst Société Nautique de Genève (SNG), as current holder of the America’s Cup, and a newly-formed entity called "Club Náutico Español de Vela" (CNEV), respectively also known as the Defender and Challenger of Record.

The Protocol is based on a paragraph of the Deed of Gift which reads:

"The Club challenging for the Cup and the Club holding the same may, by mutual consent, make any arrangement satisfactory to both as to the dates, courses, number of trials, rules and sailing regulations, and any and all other conditions of the match".

These elements (dates, courses, number of trials, boats, venue, rules, etc) are called "mutual consent items".

In our collective role as past Challengers and prospective Challengers, our opinion is that this Protocol is the worst text in the history of the America’s Cup and more fundamentally, it lacks precisely the mutual consent items which are required.

Some of the essential features of the Protocol are as follows:

1. The obligation which previously required the Event Organiser (ACM) and all Regatta Officials to be neutral has been erased. (See Art. 5 and specially 5.9 of the Protocol of the XXXII America’s Cup).

2. There is no reference or consideration whatsoever to the interests of the Challengers, who are an integral and essential part of the America’s Cup. (See Art. 2.2).

3. Any Challenger that disputes the Protocol may be disqualified from the competition by the Defender and indeed may not be accepted for any reason at the complete discretion of ACM. (See Arts. 2.7 (d) or 4.4).

4. There is a prohibition for the Challenger of Record to act in the interest of other Challengers. (See Art. 3.4).

5. ACM has powers and rights which significantly exceed the position of any Defender in any other Protocol in history. (See Arts. 6, 7, 8, 9, 10, 11, 13 or 17).

6. The Defender, through ACM, is given the power “unilaterally” to establish the rules for the all the events, including the Challenger Selection Series, giving the Defender a crucial and unfettered role in determining the Challenger for the America’s Cup. This is without precedent and is absolutely contrary to the Deed of Gift. (See Art. 5.4(b)).

7. The essential rules of the event will be imposed by ACM and changed at any time without even consultation with the Challengers. (See Art. 17).

8. The Challenger Commission disappears and the Competitors Commission is deprived of the voting rights and other crucial rights such as amending the rules or filling protest to the Jury or Arbitration Panel. (See Art. 10).

9. There is absolutely no certainty on the format, schedule or venue of the competition, qualifying regattas, defender series or scoring. (See Arts. 11 or 13).

10. For the first time in history, the Defender is designing the Class of boat in secret with no contribution by the Challengers. (See Art. 14).

11. You have granted the Defender rights never before granted in a Protocol such as having more boats than the Challengers or participating in the Challenger Selection Series, except, the Challenger Final. (See Arts. 12 or 13).

The essential consequences of your signature of the Protocol for the Challengers are as follows:

1. The asset value of the current AC boats is almost zero.

2. The Protocol makes it impossible to close a budget, now or in the near future, for any team or to seriously talk to sponsors for the next AC.

3. The Protocol harms the competitive position of the Challengers.

4. The Protocol lacks all the neutral management provisions that guarantee a fair contest.

5. The Protocol eliminates the powers of the Challenger Commission and greatly reduces those of the Challenger of Record.

6. The most important Sailing Rules will be known only 60 days before racing (in last AC they were known years ahead or several months) this implies that it is impossible to train for Match Racing and that the Defender will have an incredible advantage on the water.

7. Sport justice has gone back to before 1960’s.

8. The essential elements of the competition have changed taking all the balances and guarantees from the Challengers and vesting them in ACM and the Defender.

9. This is overall a radical change in the America’s Cup which jeopardises the participation and survival of the event.

You are well aware that serious questions have been raised about the legitimacy of the newly created and purely instrumental entity called "Club Náutico Español" to advance a Challenge under the provisions of the Deed of Gift. In the sincerest hope that the America’s Cup competition will not have to endure the turmoil associated with litigating that issue, but will rather move forward with the balanced and fair procedures and protocols that have historically characterized this competition, we ask you to dissolve "Club Náutico Español" and withdraw your Challenge within the month of July 2007.

For further background information, please visit the GGYC website www.ggyc.com