KEY POINTS:
With the legal disputes between Alinghi and Oracle now coming down to a one-on-one challenge on the water, Team New Zealand are to remain firmly on the sidelines for some time yet.
In the latest ruling by the New York Supreme Court, Alinghi's new arguments were dismissed, letting
stand the November order that San Francisco's Golden Gate Yacht Club is the rightful Challenger of Record, not a Spanish club chosen by the Swiss.
The decision means the America's Cup is now headed for a rare one-on-one showdown, probably in catamarans, between the two billionaire-backed syndicates.
Though Team New Zealand is essentially still stuck in a holding pattern until the outcome of the Deed of Gift challenge is settled, syndicate boss Grant Dalton declared the latest ruling to be the best possible result in a bad situation.
"This is the start of the clearing of the fog on the landscape," he said.
The Deed of Gift covering the Auld Mug stipulated that it would have to be raced by July this year unless there was mutual agreement between the two parties, and Dalton said he doubted Oracle would want a delay.
"As soon as Oracle can be ready with their boat they'll want to race because that's their best shot. Why wait and give Alinghi time?"
The ruling has changed little about how Team New Zealand will go about their business over the next few months, but Dalton said it had created an environment where they will be in a strong position for the next multi-challenger America's Cup, with Team NZ favouring next year or 2010 as the dates.
"We have known for some time that it would be a one-on-one challenge. Our emphasis has been since we knew that that we must prepare for the next one and stay strong for that." Several syndicates have effectively had to shut up shop while Alinghi and Oracle have duked it out in court. Dalton said while Team NZ have "geared down" their operations they have remained firmly on task, which will give them an advantage once the cup is back on track.
"There'll still be plenty of numbers when we get back to a multi-challenger event because they'll all restart, but they'll be weaker by the time spent in limbo.
"So any team that can stay strong during this period, automatically propels themselves in to the front row."
Team New Zealand have been mum on how far their design has progressed. But Dalton is adamant his team will be ready should there be a multi-challenger event in 2009 or 2010.
"We've been working on design for a while but it's sort of a trade secret, if you like, as to how far along we are."
The latest court ruling will also have little effect on Team New Zealand's own legal challenge against Alinghi. Team NZ have sued the Swiss syndicate in two New York courts in an attempt to recoup the tens, possibly hundreds of millions of dollars it says it will lose because the next regatta has been postponed.
Dalton said hypothetically even if Alinghi lost the America's Cup to Oracle it would not change anything as the original contract was based on the agreement the cup would be held in 2009.