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Oracle accuses Alinghi of making 'secret deals'
As the America's Cup defender, Alinghi has the right to organise the next edition of the race along with the "Challenger of Record".
Oracle accuses Alinghi of making 'secret deals'
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Author:
AFP
Photo:
AFP
TEXT
Published: October 27, 2009 15:07h

In a new and stinging attack on Alinghi, US team Oracle called for the removal of the America's Cup defender as a trustee of the event, accusing them of abusing their position by making "secret commercial deals."

The Golden Gate Yacht Club (GGYC), which represents Oracle, said it has asked the New York Supreme Court to replace the Swiss syndicate with a "faithful, fit and proper substitute to oversee the next match to be sailed in 2010, starting February 8."

Alinghi responded that Oracle - through its eighth legal action - in two years, has shown that its - true intention is to win sailing's most prestigious trophy in court instead of on the water. -

As the America's Cup defender, Alinghi has the right to organise the next edition of the race along with the "Challenger of Record", which the New York court has named as Oracle.

The GGYC statement came late Monday, a day before the New York Supreme Court was to consider a separate suit by Oracle opposing Alinghi's choice of the Gulf emirate of Ras al-Khaimah as the venue for their February duel to decide the next America's Cup.

Oracle considers the venue both unsafe and a violation of the rules and has called for the race be held in the Spanish Mediterranean port of Valencia, where the last America's Cup, won by Alinghi, took place in 2007.

Alinghi and Oracle, owned respectively by Swiss biotech billionaire Ernesto Bertarelli and American computer billionaire Larry Ellison, have been engaged in a two-year legal battle over the Cup.

Under a ruling by the New York court in April, the 33rd edition of yachting's premier event was scheduled to be settled in a three-leg duel in February instead of the traditional fully-fledged regatta involving several teams.

In its "Breach of Fiduciary Duty" complaint announced on Monday, GGYC accused Alinghi, represented by the Societe Nautique de Geneve (SNG), of offering the America’s Cup hosting rights in order to extract secret commercial deals."

It charged SNG had made "repeated attempts to seize control of the rules and officiating processes to ensure that Alinghi cannot lose" and had chosen Ras al-Khaimah "to further its own business interests."

- It is clear that entities associated with Ernesto Bertarelli leveraged the America’s Cup for gain - it said.

For its part, Alinghi charged - Ellison is now seeking to snatch the Cup from SNG with a new round of baseless allegations. --.-HJS-.-

- The complaint is an affront to the America's Cup, to the UAE, to our country's relationship with an important ally, and to the judicial process," an Alinghi statement quoted its lead counsel, Barry Ostrager, as saying.

In a surprise move, Alinghi announced in August that Ras al-Khaimah would host the February event.

Alinghi has already brought its giant catamaran to the emirate, while the Oracle crew is training on its trimaran in San Diego, California.

Judge Shirley Kornreich of the New York Supreme Court, the final arbitrator of America's Cup disputes, was to hear arguments on Tuesday from lawyers representing both sides over the proposed venue.

It was not known when she would announce a decision.

But whatever the outcome, the losing side appears likely to appeal, which would threaten plans for the February event in Ras al-Khaimah.

And the new complaint launched by Oracle Monday is likely to further prolong the dispute.

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