"It will take a little while for them to forget that he was the one that took the Cup off them ... but he has a lot of friends there.
"He will help bring the youth of New Zealand along even faster than we might have expected."
Conner predicted such a move would impact on Ellison, who had employed Coutts as his right-hand man in yachting.
"I think we will see Larry retiring and moving on to other things that Larry does."
The downfall of Oracle Team USA places a question mark over the continuing involvement of Team Japan and France. But Conner believes Team New Zealand will attract other teams back in the game, including another possible billionaire-backed US challenge.
Conner said he has hearing strong rumours that Richard DeVos, a co-founder of Amway and owner of the Orlando Magic NBA team, is planning on launching a challenge.
"He has the loot, he's a legitimate billionaire," Conner said.
"It will mean a lot of fresh blood and a lot of money spent."
Conner also added weight to predictions that Team New Zealand are planning a move back to monohulls, with a crew of up to 14.
"I'm hearing rumours about a sloop, maybe in the 60-foot range that could foil. We know if it's light enough and well designed, it could foil," he said.
"It will be a creative boat, you know that. There is no one more creative than they are. They will think outside the box."