America's Cup: A brief truce in the War of the Roses for the first AC teams meeting
by Richard Gladwell/Sail-World NZ 31 Jan 04:24 GMT
31 January 2025
INEOS Britannia - Race 4 - Louis Vuitton 37th America's Cup, Race Day 3 - October 14, .2024 © Ricardo Pinto / America's Cup
The embattled Houses of Ratcliffe and Ainslie are expected to stage a brief truce, this weekend, in London, for the first meeting of the teams involved in the 2027 America's Cup.
The trip and meetings are claimed to have been planned well in advance of the eruption of the War of the Roses, when a split emerged last Friday in the British America's Cup effort following the issuing of a media statement under the name of INEOS Britannia.
INEOS, the sponsor of the 2024 Challenger of Record, said they had parted company with Principal, CEO, Skipper Sir Ben Ainslie, and that the team's former COO, David Endean had taken over Ainslie's CEO role of INEOS Britannia.
For his part Ainslie, through his Athena Racing team claimed they were "astounded" by the INEOS move. It was a surprising description given that the impending event had widely reported in the tipped-off British mainstream media for a couple of days.
Unlike Challenger Meetings which have been held previously at this stage of the America's Cup cycle, the weekend's Teams Meeting is expected to be restricted to teams which competed in the 2024 America's Cup in Barcelona, and maybe observers from teams with their hands up for a Challenge for 2027.
These kick-off meetings are very low-key affairs, however this one could be very different.
The elephant in the room is the acrimonious divorce within INEOS Britannia, the America's Cup team of the Royal Yacht Squadron, the Challenger of Record for the 37th America's Cup.
Following the rift between financial backer Sir Jim Ratcliffe and skipper Sir Ben Ainslie, Ratcliffe has stated his intention to continue to operate under the INEOS Britannia banner. For his part Ainslie has vowed to continue with his well-established Athena Racing team and indicated there could be "significant legal and practical obstacles" involving the House of Ratcliffe. Adding that they would "play out in the coming days and weeks." That situation has the potential to be very messy.
Quite who will represent the current Challenger of Record, the Cowes based Royal Yacht Squadron, is yet to be formally announced.
The Teams Meeting is expected to box on with the key issues that were announced in a curiously timed statement of November 8, 2024 - just three weeks after the conclusion of the 37th America's Cup in Barcelona.
Based on that joint statement issued by the Challenger and Defender, three weeks after the conclusion of the 2024 Match on October 20, and subsequent comment, the key points are expected to be:
- Progress on the 2027 Venue - which the Defender Royal NZ Yacht Squadron said it would announce within eight months of the final race of the AC37 Match, or June 20, 2025, with the Protocol being published before that date.
- Preliminary regattas in the AC38 cycle in both AC40s and AC75s
- Expansion of Womens and Youth America's Cup events
- Use of cyclors and numbers of sailing crew, and whether the AC75s will be a partially or completely powered by batteries for above the water functions.
- Use of mechatronics and particularly the extent of pre-set use and the implications for number and functions of sailing crew.
- Crew Nationality rule in the AC37 Protocol was stated on November 8, "to be retained with the Emerging Nations provisions to be reviewed".
- Cost reduction measures where RNZYS and RYS said they had agreed to "investigate and where appropriate implement other meaningful campaign cost reduction measures including a budget cap and carbon cap for teams."
- Develop a strategy to further commercialise the America's Cup.
While such meetings are ostensibly between Clubs, who under the 19th century Deed of Gift which governs the conduct of the Cup, are the bodies who fill the roles of Challenger(s) and Defender, the reality is that the Clubs are represented around the meeting table by CEOs/senior members of their racing teams, and not the Club's Flag Officers.
Ainslie or Endean?
Quite who represents the Royal Yacht Squadron in this regard will be of some interest. It is likely to be Athena Racing Team. So how does the House of Ratcliffe interact in the context of a closed meeting?
Their now CEO, David Endean was INEOS Britannia's COO when his loyalties lay with the House of Ainslie. The Kiwi and scion of a former Royal New Zealand Yacht Squadron Commodore, would have some insights relevant to the improvement of the 38th America's Cup. Certainly he would want some input to changes that could affect his revamped team.
The zeitgeist of the contemporary America's Cup is that the Challengers thrash out a position on a given point with which they are comfortable. It is then over to the Challenger of Record to approve or otherwise, and then for the Defender to decide whether they go along with the Challenger group, the Challenger of Record or come up with some new proposal.
Neither Challenger of Record or Defender will approve anything which will substantially weaken their competitive position. Their position is effectively having the power of veto.
With that right it is unlikely that Royal Yacht Squadron could be unseated, however it is most unusual for the Challenger of Record to be rudderless just three months into the America's Cup cycle. Usually it takes at least 12 months.
The Royal Yacht Squadron will be looking to assure the teams that this is just a temporary blip in the colourful history of the America's Cup.
Under the Deed of Gift, the concept of a multi-Challenger America's Cup is not contemplated, and the Challenger of Record is under no obligation to allow other teams into their Challenge once it is accepted by the Defending club. Subject to the Protocol, they can just say "no" to any Challenger entry, or proposals for the Protocol, which is negotiated under the Mutual Consent provision of the Deed of Gift.
Both Defender and Challenger have big bags of AC marbles, it is just a matter of how many they are prepared to give away to other Cup teams, to maintain a sporting position, and encourage more participants.
Not that the America's Cup has ever been fair. One noted Cup scribe compared it to playing pool with a book under one leg of the table.
At this weekend's Teams' Meeting some key decisions and positions will have to be resolved. While the Defender and 2024 Challengers are probably comfortable to proceed, however from whom is the Challenger of Record (RYS) going to take advice on racing and very technical rules matters and their implications before exercising their considerable powers?
Will the House of Ainslie or the House of Ratcliffe have the voice of their Royal Yacht Squadron's 2024 Cup team INEOS Britannia?
Lining up on the AC starting grid
After the split of just weeks ago, both Ainslie and Ratcliffe are now starting from very different positions, and will want to ensure that this weekend's AC scrum is not screwed in favour of their opponent.
While the Royal Yacht Squadron may have a leaning towards the House of Ainslie, who are the Peoples' Choice, but the fact is that the House of Ainslie has yet to find/announce a sponsor or backers.
If Ainslie's claim of being "astounded" by Ratcliffe's move is accurate, then he and his lieutenants will only be a week into this process. The reality is that they had likely seen it coming for a long while.
They have also yet to put together a design team - which is an area where the House of Ainslie does not have a great track record without the assistance of the Mercedes-AMG Petronas Formula 1 Team design team, in which INEOS is a one-third shareholder.
Their first AC75 designed for the 2021 America's Cup has disappeared without trace. Their second attempt, the flat-bustled Britannia II, was quickly dispatched to the Classic Boat Museum in Cowes, after its return from Auckland.
While they may be able to pull together a hybrid group, co-ordinating that style of program is difficult, and the only way to have good control is with an in-house design/build/sailing/support outfit as Emirates Team NZ have done for the last two Cup cycles.
A key to that all under the same roof process, is during testing the design team can review the data and video at the team base, have a preliminary discussion, and then wander down to the dock when the AC75, or a test boat returns and chat with the sailing crew about the latest session. That process can lead to some rapid design development, as well as providing an invaluable first-hand feedback loop.
The House of Ainslie could come to a design arrangement with the likes of Belfast based Artemis Technology, which has several elements required for an America's Cup program. But it is hard to see that an outfit, which was formed out of the 2017 Swedish Artemis Racing, as having the same design oomph as a leading F1 team, with one successful AC75 to their credit.
The House of Ratcliffe appears to be an easier option for the RYS as its AC75 team, with strong funding from the beleaguered multiple sports conglomerate. They also have a strong design resources, with an AC75 experienced design team and resources located at the INEOS F1 base in Brackley.
Recruitment of a sailing team is a relatively simple exercise for an astute headhunter with professional sailing knowledge, and an open chequebook. Money has always talked in the America's Cup - except where nationality rules intervene.
Plucking a couple of star co-helms, with the right passports, and 2024 Cup experience, from the SailGP line-up should be straight forward for INEOS Britannia.
Budget caps loom large
One issue that the House of Ratcliffe will have to overcome is the announcement by INEOS Britannia that they "already have 100 scientists and engineers working on the design of our AC38 yacht". That is hardly in keeping with the concept of cost reduction, and a scaling back of the arms race, which is a strong disincentive to the entry of new Cup teams.
The House of Ratcliffe has the double jeopardy of being bound by an F1 cost cap, which includes design team salaries.
Co-incidental with the introduction of the cost cap in F1, the formation of the INEOS America's Cup design team was announced. It was also based in the same building in Brackley, which conveniently allowed the F1 team design numbers to drop, under the budget cap. The move allowed the retention of the design expertise under the same roof, but in a different sport - and with no budget restrictions.
That little work-around may come to a sticky end in the 2027 America's Cup Protocol, if an F1-style budget cap is instituted.
A further advantage enjoyed by the INEOS design team is access to wind tunnel testing expertise - currently banned under the 2024 America's Cup Protocol, but still legal in F1 - where the session numbers have been increased for 2026. While it is obviously not permitted to test an AC75 in that context, there has to be an advantage for the INEOS AC team in being able to access the software applications developed for F1 derived from the wind tunnel testing and modified for the America's Cup context.
In the last Cup, the INEOS design team case up with a big volume boat which reeked of aero-drag, but which proved to be very competitive, and had to be seen in the light of the expertise available from the F1 team in Brackley.
Back then, James Allison headed both the AC and F1 design teams. He was later split away to focus on F1 after the Mercedes-AMG Petronas F1 Team had some design issues. But Allison was announced as being back in the Cup, in the INEOS Britannia divorce announcement a week ago.
"INEOS will also continue to leverage the design and technology expertise of the Mercedes F1 Team under the guidance of Technical Director, James Allison," the House of Ratcliffe said in a written statement.
Ahead of the formal announcement of the Protocol and AC75 class rule, the existing America's Cup and would-be teams need to know the direction of travel for their design teams. They won't wait for the Royal Yacht Squadron to get its House(s) in order. The British they have gone from a very winnable position to one which is less much so. The AC38 countdown clock is ticking for all teams.
Coming ready or not
In the event that Royal Yacht Squadron aren't able to put together a racing team, then the 38th America's Cup would still proceed - as happened in 2017, 1992/95 and in also in 1974 when the challengers opted to have Royal Thames YC organise the Challenger despite the Brits not having a team. In the 1992/95 instances a Challenger Committee was instituted. West Australian the late Ernie Taylor, a veteran of the 1987 event organisation wielded the conductor's baton for almost two Cup cycles.
A third of the America's Cups since 1992 have taken place without the Challenger of Record being represented by a team. There have been ten Matches sailed in the 1992-2024 period, nine excluding the Court ordered Deed of Gift Match in 2010, three did not have a team from the Challenger of Record.
The INEOS Britannia base is believed to still be occupied by the team. Ownership of their AC75 Britannia, which competed in the 2024 America's Cup Match, is not clear. The contract between INEOS Group and Athena Racing specified that there were two basic services - "design and build services" and "racing services".
Ownership of the AC75 asset is vital for either the House of Ratcliffe or Ainslie. It will permit them to sail in any preliminary AC75 events that are planned, will allow crew training and boat modification as was done by Alinghi Red Bull Racing, American Magic and Emirates Team New Zealand in the build up to the 2024 Cup and launch of their raceboat.
The statement issued by the Defender and Challenger of Record on November 8, 2024 was necessary to block several holes in the absence of a Protocol or entries being accepted for the now known to be 2027 America's Cup, when previously the thought had been aired by the Defender that the next Match would take place within two years, in 2026.
While having no binding authority, the announcement of November 8 made it clear that teams should not continue training on the water, and getting in some free testing time, in AC75s or LEQ12 40ft test boats ahead of the 2027 Cup Protocol being announced.
The loophole should be closed in the upcoming Protocol by just back-dating the permitted start date for any testing days limitation to October 20, 2024.
The "Haves vs the "Have Nots"
The November 8 limitations serve to underline the difference between the "Haves" and "Have Nots" in the 38th America's Cup.
The Class of 2024 enter the cycle with a wealth of assets from existing sponsors; bases; chase boats; LEQ12s/AC40s, legacy wingfoils and rudders, and some with two generations of AC75s. The "Have Nots" start with nothing.
Whether the Houses of Ainslie and Ratcliffe begin the 2027 America's Cup in the "Have" or "Have Not" category will no doubt be sorted out by their respective team advisors. The outcome does make a big difference to the House of Ainslie and the Challenger of Record and from where their cashflow is sourced to get the show geared up and potentially on the water in nine months.
Winning any battle over ownership of the assets will be a handy gain for Ratcliffe and a big loss for Ainslie.
While someone with Sir Jim's resources could hardly be categorised as a "Have Not", the INEOS Britannia team will go through the same current audit review process as the other INEOS sporting entities. In the end the decision will likely come down to a personal one for Ratcliffe - now-Monaco resident - as to whether he still has the ambition to bring the America's Cup back to Cowes.
In that regard, history is on his side. Sir Jim has to look no further than fellow billionaires Larry Ellison and Ernesto Bertarelli - who both had the same disruptive approach to the America's Cup as they did to business. Both were twice-winners of the most prestigious trophy in sailing.
For his part, Sir Ben will be looking to emulate his first America's Cup team - Emirates Team New Zealand. But whether the four time Gold medalist can deliver as successfully on the Cup sponsorship front as his former boss and now nemesis, Grant Dalton, will be one of the more intriguing as aspects of the coming months.
For the Cup teams, with this weekend's meeting in London, the game of waiting is over and the hurry-up phase has begun. Time to make a commitment to the commitment, as Dennis Conner would say.
But in the 155 year history of the America's Cup, the Challenger of Record never won.
Unless it can move quickly, and resolve the War of the Roses, the Royal Yacht Squadron look set to continue this fine tradition for yet another America's Cup cycle.