MADRID - Italian syndicate Mascalzone Latino followed Team Germany today in withdrawing from a new yachting regatta in New Zealand that has been organised in response to legal battles over the America's Cup.

Mascalzone boss Vincenzo Onorato said on his website the global financial crisis made it impossible to find sponsors to back its participation in the January 31-February 15 Louis-Vuitton Pacific Series in Auckland.

Team Germany made the same argument last week to justify pulling out. Sending a team of 17 sailors to Auckland is estimated at between 300,000 and 500,000 euros ($714,000 and $1.19 million).

Twelve teams were originally registered early last month to participate in the regatta.

The 10 remaining are: Team New Zealand, Luna Rossa (Italy), Oracle (United States), K-Challenge (France), Team Origin (Britain), China Team, Team Shosholoza (South Africa), Italia (skipper, Vasco Vascotto), Greek Challenge and Alinghi (Switzerland).

The organisers have contacted the two reserves team - Italia and Team French Spirit - to see if they can participate.

The Pacific Series is aimed at allowing America's Cup crews to race while the legal action is being resolved over yachting's premier event.

Alinghi, which won the last America's Cup in the Spanish port of Valencia last year, and US team Oracle remain embroiled in a legal dispute over the timing and format of the next edition, with a New York appeal court yet to hand down a final decision.

Confirmation of Alinghi's entry in the Pacific series came after Team New Zealand agreed to drop legal action against the Swiss team.

- AFP