America’s Cup : Sail America to Probe Kiwis’ Claim

Confused Sail America officials said Saturday they are researching the legality of “this mess” that was created when New Zealand millionaire Michael Fay issued a surprise challenge for the America’s Cup that would begin in 11 months.

Sail America syndicate and San Diego Yacht Club officials appeared at a press conference Saturday to announce that an as-yet unchosen group of club and syndicate members, including some attorneys, will review the Deed of Gift, and the various amendments and “interpreting resolutions” that accompany it, to determine whether the Kiwi’s challenge is legal.

Sail America President Malin Burnham said he hopes to respond to the New Zealand challenge within 30 days. But there was considerable confusion at the press conference over how Sail America was going to proceed to answer the challenge. Despite Burnham’s plan to issue a response within 30 days, Sail America officials said they still have not assembled a group to research the deed and supplemental findings that govern the America’s Cup race.

In addition, Burnham suggested that missing documents may make it difficult to come up with a legal response to Fay’s challenge.

“Nowhere in the world does there exist a complete file of the Deed of Gift, signed 100 years ago . . . together with all the amendments and interpreting resolutions that have been handed down by the victorious clubs,” Burnham said.

George L. Schuyler formally bestowed custody of the Cup to the New York Yacht Club through the Deed of Gift in October, 1887. The document has loosely outlined the conditions of challenging for the Cup and racing for 100 years.

In a prepared statement issued in Auckland hours after the press conference at the San Diego Yacht Club, Fay expressed disappointment over the club’s wait-and-see response.

“Many people will be surprised that the San Diego Yacht Club did not respond with a more definitive position,” Fay said in the response. “Our position is simply that we are proceeding with the challenge.”

Fay’s challenge is unique because, since 1974, the challenge races have been held about every four years, said Thomas F. Ehman Jr., newly chosen vice president and chief operating officer for Sail America. The next races are scheduled for 1991.

However, in their challenge letter dated July 15, the Kiwis cited amendments issued in 1956 and 1985 by the New York State Supreme Court, trustee for the deed, which they say make the challenge legal.

According to stipulations in the Deed of Gift, a challenging club need only give 10 months notice in writing, naming the days for the proposed races.

“There is a lot of enthusiasm for an America’s Cup match to be held next year,” said Fay in the statement released Saturday. “We have stated and repeated that we do not see a match in 1988 in any way conflicting with the concept of having a multinational event in 1991.”

Furthermore, Fay and the Mercury Bay Boating Club Inc., the group for which Fay would be sailing, argue that the deed gives any nation the right to challenge for the Cup. According to this interpretation, New Zealand and the United States would be the only two nations racing for the Cup if the three challenge races proposed by Fay were held in June.

In recent years, the challenge races have been regattas involving as many as 13 clubs from different nations.

“It’s entirely out of order,” Burnham said about the New Zealand challenge. “ The America’s Cup has grown to be a preeminent international event . . . which is directly opposite of the New Zealand challenge.”