America's Cup: Yacht club to be told Team New Zealand has no choice but to defend Cup off-shore

Grant Dalton is expected to tell Royal New Zealand Yacht Squadron members tonight Team New Zealand has no option but to defend the America's Cup offshore, according to a former team member.

The three month exclusive negotiation period with the Government ends on Thursday.

It's understood there is a significant gap in what the Government is prepared to offer and what Team New Zealand wants, and Dalton will attempt to convince the squadron that the best chance of mounting a successful defence is to hold the next regatta in the Northern Hemisphere.

That won't sit well with some, and the possibility of legal action looms.

It's understood there is a significant gap in what the Government is prepared to offer and what Team New Zealand wants. Photo / Michael Craig

Sailing professor and former Team New Zealand member Mark Orams told Newstalk ZB's Heather du Plessis-Allan that Dalton will have to use all his powers of persuasion to get through the meeting.

"The challenge that he's got is based on the fact that the holders of the America's Cup are the squadron.

"Team New Zealand, headed by Grant Dalton, represents the Royal New Zealand Yacht Squadron, so he's having to front the members to explain his proposal."

He says it will not be an easy job, as members of the Squadron and the broader sailing community want it to stay here.

"Many people feel very strongly invested in Team New Zealand. It is seen as more than just a privately owned sailing team."