By HELEN TUNNAH
Seattle's OneWorld Challenge had its hands on winning America's Cup design secrets just three months after Team New Zealand defended yachting's prized trophy.
This claim, by Russell Belden, who was trying to set up a rival Seattle syndicate, was made in evidence to a two-day hearing on claims
that OneWorld had more design secrets from other teams, including Team New Zealand and Prada, than they had previously admitted.
A cup arbitration panel heard the claims over the weekend and issued a ruling yesterday, penalising OneWorld to the point that its regatta prospects are effectively dashed.
In his written evidence, made available yesterday, Mr Belden said he met former Team New Zealand rules adviser Sean Reeves and OneWorld chief executive Gary Wright in June 2000. Mr Reeves helped set up OneWorld after the last cup before an acrimonious split last year.
Mr Belden said he talked to Mr Reeves and Mr Wright about their campaign, which had yet to be launched.
"We talked very seriously about our respective assets for almost one hour," his affidavit said.
Mr Belden recalled telling the pair he had already bought an America's Cup yacht from the 1992 Italian syndicate.
"At this point of the conversation Mr Sean Reeves answered 'Our boat is NZL57' (or words to that effect), which was corroborated by Mr Gary Wright nodding."
Mr Belden said he was shocked, because he thought it meant Team New Zealand had sold NZL57, the sister yacht of NZL60 which had just won the America's Cup. He later realised Mr Reeves meant NZL57 designs.
Mr Belden said that in February last year he met Team New Zealand chief executive Ross Blackman and told him of the incident.
He said Mr Blackman was adamant neither Team New Zealand's boats nor designs had been sold to OneWorld.
"Mr Ross Blackman made it very clear that was not the case as they considered NZL57 and NZL60 their most valuable assets."
Team New Zealand yesterday confirmed that a conversation with Mr Belden had taken place, but would not comment further.
Mr Belden's affidavit was also submitted as evidence against OneWorld by Team Dennis Conner and Prada.
He did not appear at the hearing, so was not cross-examined by OneWorld.
In his evidence to the panel, Mr Reeves described the meeting as simply a "chest puffing" exercise, and Mr Wright denied that the remark about NZL57 was made.
"Sean Reeves did not tell Mr Belden we had NZL57's plans," Mr Wright said. "I don't recall any reference to NZL57. Mr Reeves was making the point we were starting at a higher level than Il Moro of 1992.
"There was a certain amount of, 'We're doing better than you'. I would have remembered if a specific fact like, 'We have NZL57', was said."
For much of Saturday, Mr Reeves gave lengthy evidence at the hearing.
OneWorld lawyers attacked his credibility and called a series of witnesses, including their own designers and an independent naval architect.
They all denied Mr Reeves' claims that team members knowingly had and used other syndicates' designs.
OneWorld told the panel on Saturday that one of their designers, Ian Mitchell, had a computer disk containing substantial Team New Zealand information, but said it was not used.
In its decision, the panel ruled that OneWorld did have Team New Zealand design material it had not previously declared.
It docked them a series of points for the remainder of the regatta, and imposed costs of US$65,000 ($130,000).
OneWorld escaped punishment for accusations brought against them by Team Dennis Conner and Prada that they had misled the panel and had not fully disclosed all the design secrets they wrongly had from other teams.
The panel dismissed the Team Dennis Conner and Prada application to disqualify OneWorld. The panel made no comments on the evidence presented by the two syndicates, primarily based on a 46-page affidavit sworn by Mr Reeves.
It said the full reasons for its decision would be issued later.
The weekend hearing was the second faced by OneWorld over allegations they had other teams' design secrets.
They told the panel late last year that they had some design data, but said it was insignificant and was not used.
OneWorld admitted they had design information from three other 2000 Cup syndicates, Team New Zealand, Prada and America True.
At the time, Team New Zealand questioned whether OneWorld had revealed everything and filed a series of affidavits from their designers and crew outlining what they thought OneWorld might have had access to.
They argued that the material was substantial and significant, and said possession alone was a serious breach of the cup rules.
They also tried to submit the Reeves evidence, and asked the panel to have their designs compared with OneWorld's first design package.
The panel declined to consider the Reeves evidence or to call in experts to compare designs. OneWorld was penalised one competition point, and fined.
Reactions to the ruling
Bob Ratliffe, OneWorld Challenge.
"This is a stunning indictment of honesty, to be penalised for telling the truth."
Ratliffe said the disk that designer Ian Mitchell admitted having had not been accessed since he left Team New Zealand and joined OneWorld.
The team were stunned by the penalty. "This is a big blow," Ratliffe said. Mitchell remained a team member. "I think we all make mistakes."
* * *
Dennis Conner, Team Dennis Conner.
Conner said he did not "honestly" know if OneWorld had possessed and used other team's design information, as asserted by Reeves. "But if they did, it certainly would have been a big advantage."
He credited OneWorld's admission about Mitchell's computer disk. "That was smart of them. My guess is if they hadn't come forward, they would have had to face it down the road."
Conner later withdrew a separate protest against OneWorld lodged with the international jury, saying the team had had its day in court.
* * *
Alessandra Pandarese, Prada.
Pandarese, Prada's legal adviser, said the panel's decision backed up their allegations.
"The decision of the Arbitration Panel, embracing our thesis, has recognised that OneWorld Challenge has been in possession of design information belonging to Team New Zealand, winner of the last America's Cup, thus breaching the America's Cup Protocol. "This breach had not been disclosed by OneWorld during the former panel application they themselves submitted."
Door firmly closed on New Zealand media
The Herald and all other New Zealand media were excluded from the weekend's America's Cup arbitration panel hearing into claims that OneWorld used Team New Zealand's design secrets.
Just two journalists were allowed into the hearing, representing a United States news agency and an Italian newspaper. A spokesman for the Louis Vuitton challenger series was allocated the third media position.
The Herald, which has reported extensively on the allegations for more than a year, made two applications to the panel to attend the hearing.
However, the panel asked the syndicates to decide on the media representatives, and the challengers' management and the Louis Vuitton spokesman both told the Herald no application would be considered.
- additional reporting: Associated Press
nzherald.co.nz/americascup
Racing schedule, results and standings
By HELEN TUNNAH
Seattle's OneWorld Challenge had its hands on winning America's Cup design secrets just three months after Team New Zealand defended yachting's prized trophy.
This claim, by Russell Belden, who was trying to set up a rival Seattle syndicate, was made in evidence to a two-day hearing on claims
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