America's Cup: Team NZ face tough battle off the water

Grant Dalton says a principle is at stake. Photo / Brett Phibbs

Boss Dalton says syndicate safe despite axing of Auckland as host of qualifiers.

Team New Zealand insist their fight to have Auckland reinstated as host of the America's Cup qualifiers is motivated by principle, not the team's survival.

Team boss Grant Dalton says regardless of the outcome of any potential hearing "this is not the end of Emirates Team New Zealand".

The Kiwi syndicate yesterday filed an application to the America's Cup arbitration panel challenging the decision to ditch Auckland as host of the qualifying regatta in early 2017, claiming organisers had "breached their signed agreement and protocol obligations".

The move comes after the America's Cup Events Authority (ACEA) announced it was going ahead with plans to draw up a new class rule after receiving a majority vote from the teams to make changes to the boats for the 35th America's Cup. Organisers have indicated the new class will be a wing-sailed, foiling catamaran between 45 and 50 feet.

The majority also indicated a preference that all of the racing in 2017 be conducted at a single venue, Bermuda. With Team NZ's bid for government funding hinging on being awarded the qualifying regatta, there has been some suggestion the loss of the hosting rights would mean the end of the Kiwi syndicate. But the cost-cutting measures voted through yesterday mean the withdrawal of public money will no longer be terminal for Team NZ's campaign.

Minister of Economic Development Steven Joyce had already indicated the level of government investment in the next cup would be significantly less than the $36 million handed over for the 2013 campaign.

It is understood the Government was prepared to put only $5 million to $10 million towards Team NZ's next bid for the America's Cup - the potential loss of this money will be more than offset by the reduction in costs associated with moving to a smaller boat.

Team NZ say moves to change the venue of the qualifiers retrospectively are illegal. Under the original protocol, the qualifier venue was to be announced by February 15 this year.

This requirement was fulfilled on that date, with the teams informed that Auckland would be the location of the qualifiers, although no public announcement was made at the time.

But among the changes to the protocol voted on yesterday, ACEA sought to change the date to April, and disregard the agreement for Auckland to be the location for the America's Cup qualifier.

It is not yet known whether any other teams plan to follow Team NZ's lead and file complaints with the arbitration panel after yesterday's announcements.

America's Cup organisers believe the controversial changes are crucial to the event's survival.