It now seems certain - Artemis will not be allowed special dispensation to use safety rudders in the 34th America's Cup.
Formal notice is expected in the next day or so after it is understood that the Italian challengers, Luna Rossa, stood firm in their stance not to allow the Swedish syndicate to use the rudders yesterday.
Artemis, battling to get back on the water after their fatal capsize in May, said the international jury's ruling in favour of Team New Zealand and Luna Rossa might exclude them from competing as they did not have a set of rudders that comply with the new class rule.
But Team New Zealand were prepared to offer Artemis dispensation to the class rule if it meant helping Iain Percy and his crew get back on the water. Oracle were also keen - but not the Italians who said they felt Artemis had rudders which would comply with the rule.
The Italians may not have forgiven Artemis for challenging Luna Rossa and their design co-operation with Emirates Team NZ. It was also Artemis (some say with one hand forced up their back by defenders Oracle) who protested to the jury again over the two teams' ability to foil. They lost that one, too.
However, politics may also have played a part. Artemis apparently sent team boss Paul Cayard to plead their case direct to the Italians - but it's understood a lot of the bad blood between the two syndicates is centred around Cayard. A cannier play may have been to send their respected sailing boss Percy as an emissary of peace.
So it's a moot point whether Artemis will make it to the racing in time or whether they can be any kind of a sailing force in the short time left to them. Regatta director Iain Murray was bullish earlier this week about their prospects - talking positively about the boat going in the water at the end of this week after structural testing was completed and having its first outing at the weekend.
Artemis originally decided not to take a foiling route in their design and, for whatever reason, the boat broke up after the capsize. Now they have had to re-design their boat, re-build it, sail it, de-bug it and learn how to foil it safely and consistently so they are competitive.
All by the beginning of the Louis Vuitton semifinals on August 7.
Artemis' reappearance is sorely needed to provide some variety and more two-boat racing in this regatta. However, it is more than likely their crew work and boat speed will not match that of either Emirates Team NZ nor Luna Rossa.
Nonetheless, the event needs them. Artemis have unquestionably made mistakes in design, build and sailing. Murray's efforts in forming 37 safety recommendations may have been partly motivated by getting Artemis to the start line. Team NZ, in protesting against Murray's now outlawed safety rudders, never alleged the well-respected Murray had deliberately advantaged holders Oracle with "ruddergate" - just that they had benefited from the proposal.
But now it seems that Artemis won't even be able to gain from dispensation - casting further doubt on either their participation or their competitiveness.