America's Cup: Historic change of course - the daring Cup turnaround

The America's Cup differs from other major sporting competitions in a number of ways. However, its most striking feature has always been the "winner takes all" aura. Whoever wins the Cup is allowed to determine the ground rules for the next edition - unless there is a legal dispute. This advantage, which made the Cup unique, but also so difficult to plan in the medium and long term, is now gone. This was agreed by the New Zealand defenders and the British Challenger of Record after a year of negotiations and in consultation with renowned institutions such as the New York Yacht Club and many legal and financial advisors.

The America's Cup Partnership sets the course for the future

The agreement announced on 15 October is nothing less than a revolution for the oldest active international sports trophy. The architects of the historic change of course are convinced that they are doing the right thing for the America's Cup, which has been gradually running out of players and interested parties since the last high in 2007 in Valencia with twelve teams. Five challenger teams and the defenders were last in action in Barcelona. Sir Ben Ainslie expects "four to seven teams" for the 38th America's Cup.

The historic legal paper on the Cup turnaround comprises around 400 pages. With this sensational agreement, the New Zealanders in particular have relinquished their advantages as the defenders of the next America's Cup. In future, the newly formed America's Cup Partnership (ACP) watch over the competition for the bottomless pitcherensure the survival and reinvigoration of the 174-year-old competition in the modern sports world.

The new management structure turns the previous nature of the America's Cup on its head. In future, all teams with an ACP seat will jointly oversee all important decisions. The organisers describe the establishment of the ACP as a "milestone". This seems almost an understatement, because instead of the winners - as was previously the case - in future all teams taking part in the 38th America's Cup will manage and develop the regatta summit of the sailing world together.

The America's Cup without change at the end?

The architects of the new organisational structure hope that the reorganisation will above all provide reliable continuity and better long-term planning for the America's Cup, which is to be held every two years in future. The 38th Louis Vuitton America's Cup is scheduled for 2027 in Naples, with the 39th edition to follow in 2029 in the style of a circuit. The reorganisation is as interesting as it is risky.

This was explained and discussed by Team New Zealand's CEO Grant Dalton for the Defenders and Athena Racing's CEO Sir Ben Ainslie for the Challenger of Record in an exclusive roundtable with international America's Cup journalists, in which YACHT took part. Interesting because the process represents a radical modernisation that many supporters, sponsors and TV broadcasters had wanted. Risky, because the unique selling point of the America's Cup, which is as attractive as it is unpredictable, has been abandoned.

The New Zealanders have given up the Cup rights they won on the water, making the biggest sacrifice for the future. Grant Dalton answered the question of how much the defenders had sacrificed at length in the round table, saying: "I would put it another way..."

If we hadn't done that here, it would have pretty much meant the end of the Cup." Grant Dalton

"So in that respect," Dalton continues, "we haven't given anything away. In fact, we've created an environment in which the Cup can progress and develop. If you look at it ultra-realistically, we've given away everything. All the advantages of the defenders. But maybe we just saved the Cup."

"The biggest change in the history of the America's Cup"

Which makes Dalton take a differentiated view of the development he himself has helped to drive forward: "So I don't really see it as giving up, but - if I think for Team New Zealand now - also as a future for the team. I remember what Michael Fay (ed.: New Zealand Cup chaser) once said to me: 'If we ever win it, we'll just put it in a cave and close it up. And sit on it for 30 years. I don't care."

And that, according to Dalton, is "the thing". New Zealand's chief conductor explained: "If you do that, you'll still have the America's Cup in your display case 30 years later. But you wouldn't have a team. And you wouldn't have an event. So if we hadn't done it now, then maybe - right or wrong, it remains to be seen - there wouldn't have been an event in the near future."

Ben Ainslie has a similar view. The most successful Olympic sailor in sporting history with four gold medals is chasing the America's Cup for Great Britain. So far without success in three British attempts, even though his team came very close to the dream as challengers in last year's Cup duel in Barcelona. His conviction with regard to the Cup reorganisation: "I think it's the biggest change in the history of the Cup. As Grant said, we are now able to really develop this partnership and have people investing in the Cup for the long term."

Historic Cup concept: "Not really viable"

Ben Ainslie continued: "Grant and I agreed: we firmly believe that this is crucial to the future success of the Cup, rather than letting it slowly fade away. Then with great historical relevance, but not really viable in the modern era of the sporting world."

It's a huge, huge deal. And we are determined to make it a success." Sir Ben Ainslie

However, the two experienced Cup heavyweights are also aware of the risks that their revolution harbours. Dalton admits: "I don't think there's any doubt: it has completely changed the model. And we will find out if it was right." Does he see the new America's Cup Partnership as a mixed board of enthusistic Cup billionaires and a franchise model like the SailGP?

Dalton's answer: "It's a different franchise model to the SailGP. Remember, the teams control the event. It's a totally different model than where a guy with a lot of money controls the event. That's not what we do. We have a team model that controls the event. And a billionaire on one of those teams is just a billionaire on one of the teams. It's just one vote. That's a crucial difference."

Ben Ainslie: "We have an America's Cup"

Which model was the ACP management structure modelled on? Dalton's answer: "It's an NBA model (Editor: NBA stands for North America's professional basketball league). Or NFL (ed.: National Football League in the USA). But the NBA is what we think of most. Whether these billionaires are organised in teams or investment organisations: They don't control the environment. They are only involved in one team."

The America's Cup Partnership will officially begin its work on 1 November. The date is linked to the deadline for Cup challengers on 31 October, although late entries for the 38th America's Cup are still possible until the end of January 2026. It is not yet fully known which teams will make up the ACP for the 38th America's Cup and beyond.

Ben Ainslie said: "The change has only just begun. We wanted to see if it was feasible first. I'm not trying to avoid the question. But I'm always reluctant to proclaim those who are in, if it's their business to proclaim it themselves. But we have an America's Cup. We have an active and valid protocol. And we have boats for an America's Cup."

ACP headquarters requires long-term commitment

So who can be included in the America's Cup Partnership, which is due to start on 1 November? Grant Dalton explains: "Teams have to meet a certain threshold to be accepted into the America's Cup Partnership. They have to pay their entry fee and commit to several cycles. The penalties for dropping out are quite severe. And they should be. Otherwise this model would not be robust."

Ben Ainslie adds: "They will be very careful about balance with investors. You can't have bad actors." The fast approaching 38th America's Cup in Naples will be held on existing AC75 yachts with a focus on fair competition, sustainability and cost control, but for which foils and systems can be modified.

At this point, those responsible had partially abandoned the Cup's pioneering role on the technology front. The measure was taken, according to the official justification, because detailed analyses had shown that the hull shapes themselves only resulted in minimal differences in speed. The actual performance gains, so the argument went, were in the foils and systems.

Technology as the main attraction in the America's Cup

Will the America's Cup now lose its trendsetting role on the technology front? Grant Dalton ponders: "There are ten different answers to this question. The first is that the cost cap (editorial: 75 million euros per team in the 38th America's Cup, to be reconsidered for the 39th America's Cup) does not include new boats. So if it is decided to allow the teams to build new boats, the cost cap will be adjusted accordingly."

The second consideration, says Dalton, "is that our studies, which are probably all similar, show that the aerodynamics of just the hull itself across the entire fleet, even with a wide variety of designs, play virtually no role. Maybe five seconds. So the fuselage doesn't really matter. Even though it houses all the electronics. The foils can be developed further. And the PCO and hydraulic systems or the way in which the systems are controlled are still open. And the sails. The hull doesn't have much to offer."

Dalton's announcement: "In the bigger time frame, we will be transitioning to new hulls. Super important is that we have to remain the technological part of the sport. You have to keep the technology of the Cup. That's one of the main attractions. In order to stay, it would be completely wrong to still be sailing with the same hulls in ten years' time. That's just not going to happen. That's not the Cup. And that's what I'm getting at."

AC75 yachts have the biggest "wow factor"

At this point in the interview, Ben Ainslie also added: "I completely agree with Grant and his vision to really be at the forefront of technology. But I'd like to say something else: of all the boats I've ever seen, the AC75 boats have the biggest wow factor! I mean, when one of these boats passes an escort boat or anywhere else at 80, 100 km/h, it's just breathtaking. Of course, we have to keep them at the forefront of technology."

The fact that with the America's Cup and the SailGP there are now two top events in professional sailing that are becoming more similar to each other is something that the Cup promoters see as rather beneficial. Ben Ainslie, whose Team Emirates GBR competes in the SailGP and leads the season championship ahead of the finale in Abu Dhabi at the end of November, explains: "We obviously have a foot in both camps. It's fantastic for our sport to have the SailGP, which has to be recognised for the last four or five seasons. And now the step in the America's Cup as well."

Ainslie also gives the reason for his enthusiasm: "For young sailors it's marvellous! All these 49er or Moth sailors are coming up. To have these opportunities today is better than it's ever been. Of course, we have to do a good job and synchronise the schedules. Many of these top sailors will be involved with both the Cup and the SailGP. Co-operation will be key. These two events should really support each other. How far that can go is of course a completely different question."

If we are smart about how we develop both events, then sailing at the highest level will really be turbocharged. That's how I see it." Ben Ainslie

Grant Dalton's Emirates Team New Zealand is not currently directly involved in the SailGP. New Zealand is represented in the sailing league directed by Russell Coutts by the Black Foils led by Peter Burling and Blair Tuke. Burling officially left the New Zealand Cup team this year and is competing in the 38th America's Cup for the Italian team Luna Rossa.

America's Cup: And what about the foundation charter?

Cup defender Grant Dalton says with regard to the SailGP: "There will be no clash of dates next year. We will be able to organise the planned events according to our own calendar. The obvious clash will come at Cup time (editor's note: 2027). That's when the final pre-regatta, the full Louis Vuitton Cup and the Cup itself will take place. Each team will have to make its own decisions regarding personnel at that time. We have already made our decisions. We did that very early on. But every team is different. They will make their own decisions."

One of the many exciting questions in the conversation with Grant Dalton and Ben Ainslie was this: Will the Cup revolutionaries go to New York Supreme Court to have the Deed of Gift amended to reflect the new agreements and forestall potential lawsuits that have had the makings of so-called "mismatches" and gridlock in the America's Cup in the past?

Grant Dalton says: "Firstly, let me go back to what I said before: Because you have a Challenger of Record that the ACP partners have agreed to before the races start, and because you have a protocol before the races start, the protocol allows - no matter who is challenging and who is defending - the possibility of a deal with a venue before the next Cup. You act by mutual agreement. You are in no way in conflict with the deed of foundation in that regard."

Changing the "Deed of Gift" could take years

Then Dalton follows up and says: "Would it be better to change the deed of foundation? Yes, it would be! Possibly, at least. Now that we have a robust structure in place, the time constant is there. I think that was the part that everyone missed. As long as you have a challenger of record and a defender, as long as you have a protocol, you have an event. And that was agreed beforehand. You can make decisions, you're not incapacitated. But now we're going to take a closer look at potential changes to the foundation rules. That will happen. At the very least, we will take a closer look. But we mustn't make any mistakes in our thinking: Five minutes won't be enough. It will take a few years."

Ben Ainslie also knows that going to court and amending the foundation deed makes sense in order to avoid future court disputes and cup turbulence as in the past. His opinion: "I agree. That's a really important part of developing this partnership. As Grant says, you have that consistent nature of mutual understanding. But to really back that up, we need to become a mandate holder. We've had some good feedback from the New York Yacht Club. They're really supportive of what we're trying to do here. That's the key."

Intense! While the America's Cup is currently undergoing radical change, here's a look at radical racing scenes in its history up to the 37th America's Cup in Barcelona: