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Appeals court rules in favor of U.S. in Cup lawsuit

The New York Court of Appeals today reversed a lower court decision in a long-running legal dispute over the next America’s Cup, making Larry Ellison’s BMW Oracle Racing syndicate the Challenger of Record.

The court found that Club Nautico Espanol De Vela — the Challenger of Record selected by Alinghi, the Swiss syndicate that holds the Cup — does not meet the requirements under the Deed of Gift to challenge. The decision reinstates Oracle — backed by the Golden Gate Yacht Club — as the Challenger of Record.

This sets the stage for a potential one-on-one Deed of Gift match between Oracle and Alinghi in giant multihulls. Ellison has built a 90-foot trimaran that the team earlier this year sea-trialed on the West Coast. Ernesto Bertarelli, head of Alinghi, has said the syndicate is building a boat to sail against Oracle, but has disclosed few details.

Click here for the court decision.