America’s Cup chaos as US entry withdraws two days before deadline
US sailing team American Magic has withdrawn from the next America’s Cup after British entry Athena and holders New Zealand signed a new commercial deal.
American Magic, whose founders include Indianapolis Motor Speedway owner Roger Penske, cited issues with the present structure, insisting it “does not provide the framework for American Magic to operate a highly competitive and financially sustainable campaign for the 38th America’s Cup”.
It does not mean that the United States will not have a representative in the next America’s Cup, taking place in 2027 in Naples, but with the deadline to enter the next regatta on Friday time is running out to have a Stateside entry.
“Our focus now shifts to the future,” said American Magic chief Mike Cazer. “That means athlete and technology development, international competition, and continuing to drive advanced manufacturing and design innovation from our base in Pensacola [Florida].”
America’s Cup drama
It comes as a new commercial partnership was agreed between defending champions, The Royal New Zealand Yacht Squadron, and the British challenger, The Royal Yacht Squadron. It is set to commercialise the world’s oldest international competition and it could even see prize money introduced, as revealed by CityAM in August.
Global law firm Hogan Lovells advised Athena Racing on the deal with team principal Sir Ben Ainslie stating: “The America’s Cup partnership marks a truly monumental step forward in the event’s history, addressing 174 years of historical governance while respecting its ethos and developing a modern framework.”
The boats will now carry a crew of five, including one woman – taking away the need for the workhorse cyclors – and be able to invite a celebrity or VIP onto the racer.
Britain, under Sir Jim Ratcliffe and Ainslie’s Ineos Britannia, reached its first America’s Cup final in 60 years during the last regatta in Barcelona but was beaten 7-2 by New Zealand.
Ratcliffe and Ainslie then fell out, with the latter becoming the sole British entry under the Athena banner.