Team NZ: 'It's not the end of the road'

Team NZ board chair Keith Turner said signed documents between Team New Zealand and ACEA confirmed the Auckland event earlier this year. Photo / Brett Phibbs

Team New Zealand maintains it is "not the end of the road" for an America's Cup pre-regatta to be held in Auckland, despite an official announcement all races will be held in Bermuda in 2017.

The future of the team looked grim today after the announcement on the Cup's official website led Prime Minister John Key to cast doubt on the sailors receiving any government funding for the bid without the New Zealand event.

The announcement stated, "The America's Cup event format was agreed by competitors and that all racing will take place in Bermuda."

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Team NZ board chair Keith Turner told the Herald this afternoon that the America's Cup Event Authority (ACEA) could not legally make that statement.

The decision was subject to a legal process after the ACEA back-tracked on its decision to hold an Auckland event, he said.

Dr Turner said signed documents between Team New Zealand and ACEA confirmed the Auckland event earlier this year.

It was also announced at a meeting with teams last month, he said.

"We are not at the end of the road," he said. "They can't do this, they can't sign us up to a qualifier and then change their minds suddenly.

"It is subject to arbitration, we have some documentation that's been signed between us and the ACEA. It was announced at the team meeting in March that there would be a qualifier in Auckland and that's now subject to arbitration."

Dr Turner said it was no secret the government would not provide additional funding if there was no Auckland event - but that stage had not been reached yet

Since the ACEA's announcement this morning, Key has said it was now "extremely unlikely" the Government would give more funding to Team NZ.

"I expect there to be further discussions between Steven Joyce and Grant Dalton, but I think it's extremely unlikely there would be more funding for Team NZ."

He said he was aware of the arbitration, but it would be hard to justify funding if the lead-in regattas were all held in Bermuda.

"It makes it really difficult to make the case for more money."

He did not believe the $5 million the Government had already put in was wasted.

"It was necessary to hold the team together and it was an important next step for them as they look to build their private sector donors." He said at the time the funding was given the Government and Team NZ were optimistic Auckland would host a regatta.

Mr Joyce was unavailable for interviews, but in a statement said that the Government was clear that involvement as "a major sponsor" was contingent on securing a qualifier series for Auckland. "If there is no qualifier series in Auckland, the Government will not be a major sponsor."

He said Team NZ was continuing to pursue its arbitration process and he expected to be advised on the outcome in due course.