The America’s Cup undergoes a revolution

America’s Cup

The Protocol for the 38th edition innovates in many ways. But its validity is conditional on the signature of a partnership agreement which, at the time of going to press, had not convinced all the teams.

For 174 years, it has operated on the principle of an almost absolute monarchy. In essence, the America’s Cup is anything but democratic, conferring all power on the holder of the precious trophy. A concept that has spiced up this competition since its birth in 1851. A model which, in the age of sport business, no longer necessarily works. On August 12, almost ten months after the conclusion of the 37th America’s Cup in Barcelona, the Defender, The Royal New Zealand Yacht Squadron, represented by Team New Zealand, and its “Challenger of record”, The Royal Yacht Squadron Ltd, represented by Englishman Sir Ben Ainslie’s Athena Racing, unveiled the “Protocol” for the 38th edition, scheduled to take place in Naples in 2027. A document presented as “seismic”, to use the term used by Grant Dalton, the boss of the New Zealand team.

Change of course

The new regulations, the result of a clear desire to change direction, include a number of changes compared to the 2024 edition. These changes are in keeping with the times, and represent a step forward in terms of cost control. The stated aim of the signatories is “to increase the number of competitors and public interest in the event”. Thus, the Protocol for the 38th America’s Cup establishes the principle of budgets capped at 75 million euros. It imposes gender diversity, with the obligation to have at least one woman in each crew, and relaxes the nationality rule by authorizing the presence of two foreigners on board the boats. Crews have been reduced to five, as the cyclists, who used to provide the energy, will be replaced by batteries. Finally, the rules allow for the possibility of having a guest on board, in order to maximize the involvement of fans and sponsors. The race format has been rethought. The Louis Vuitton Cup will feature a group phase combining match racing and fleet racing with all competitors. And up to three preliminary regattas are planned, including one as early as 2026. As for the technical and technological aspects, once again a cost-cutting measure, since the teams present in Barcelona will have to keep the hull of their AC75, while newcomers will be forced to draw inspiration from a pre-existing design.

Towards a partnership agreement

While on the face of it, these changes are a step in the right direction, some of the potential Challengers see them as an opportunity for the New Zealand Defender to maintain a sporting lead. “With these rules, the America’s Cup is impossible to win,” says Brad Butterworth. The New Zealander, four-time America’s Cup winner and member of the Alinghi board, declined to comment further. However, it is known that he and Ernesto Bertarelli, along with American businessman Doug DeVos, have been actively involved in discussions with the Challengers of the last Cup and the Defender over the past year, and have floated the idea of a “partnership agreement”, a kind of pooling of rights that would allow the teams to be co-owners, as it were, with a say and a right to profit. And this is where the concept would be revolutionary.

The Protocol, according to article 3.1, is conditional on the signature, by midnight on September 9, of this “partnership agreement”. Article 3.1 stipulates that “if this condition is not met, this Protocol shall be null and void”. For Grant Dalton, this reform is “the boldest change in the 174-year history of the Cup. With this partnership, we offer teams, commercial partners and host cities the certainty of being able to invest over several editions”.

Which teams will be on the starting line?

At the time of going to press, with the deadline still to come, this partnership agreement is not considered satisfactory enough in the eyes of some teams. How many Challengers can Grand Dalton and Sir Ben Ainslie count on? Italy’s Luna Rossa seems ready to sign the agreement as it stands. The choice of Naples as the
is enough to make them happy. Contacted via their press attaché, those in charge of the French challenge declined to comment for the time being. Nor did the Swiss or the Americans. Behind the scenes, however, there are whispers that they are prepared to commit to certain conditions. One thing is certain: entries for the 38th America’s Cup are open until January 31, 2026. And finally, even with the move towards a more democratic system, the “Old Lady” retains her share of mystery.