Half the boats challenging for the America's Cup will not make it to the start line in Auckland in 2021, according to a report.
Newshub have reported that all three teams that filed late entries have failed to get enough money together to stage a challenge.
"It is not surprising that some of the challenges aren't going to make it to the start line," America's Cup veteran skipper Chris Dickson told Newshub.
"It's an expensive game, the America's Cup."
It leaves Emirates Team New Zealand facing the prospect of losing millions of dollars.
Newshub reported that Malta's entry is "dead in the water", DutchSail is resorting to crowdfunding and California's Stars and Stripes is currently drafting a media release announcing its withdrawal.
That would leave Luna Rosa, the challenger of record, INEOS Team UK, backed by Sir Ben Ainslie, and American Magic, from the New York Yacht Club.
It's suggested Emirates Team New Zealand will miss out on selling a design and technology package worth $5 million per team.
A late entry into the 2021 America's Cup, the leaders of the Netherlands' challenge admit they are facing a tough task to make up ground.
Their campaign began months behind the initial four teams leaving them plenty of ground to make up.
"We started in November with a backlog and we are working hard to make up lost ground," DutchSail general manager Eelco Blok said.
"We are facing killer deadlines, but as long as there are chances, we won't give up."
The three late entries – which also included Stars and Stripes Team USA, and Malta Altus – needed to come up with a 25 per cent instalment of their $US1m entry fee this week, with the balance to be paid by the end of the month.
Stars and Stripes were believed to be well on track in their preparations to get a boat on the water as soon as possible. DutchSail skipper Simeon Tienpont has expressed his eagerness to put together his team and get the building process underway, and said: "We have to get down to work with the boat and the team; we cannot delay any longer. We need to take the water."
Teams are now allowed to launch their first full-scale race boat, however it was expected none of the sydnicates would be ready to do so until the middle of the year.
Malta Altus have been quiet in their progress and were thought to be under enormous pressure to get their challenge into gear.
DuthSail turned to crowd funding to help raise NZ$3.9 million in a bid to put together a competitive challenge. The team added a tab to their team website asking supporters to buy "certificates of support" at €100 (NZ$165) per month, for the 24 months leading in to the 36th America's Cup.
"It will be incredibly exciting to put together the funding," Blok said.
The 36th America's Cup will be the first in the 167-year history of the event that will feature a challenge from the Netherlands.