Faced with strong public criticism from both Athena Racing and NYYC American Magic, Emirates Team New Zealand has taken the rare step of publishing the full draft of the 38th America’s Cup Protocol.
Typically kept under wraps until finalised, the protocol was pushed into the open after both major challengers voiced concerns over transparency and the pace of negotiations. With key deadlines looming, ETNZ says the release is an effort to demonstrate good faith and full visibility.
The 74-page draft, written in partnership with the Challenger of Record (Royal Yacht Squadron Ltd), reveals a blend of continuity and change—aiming to preserve the Cup’s traditions while modernising aspects of cost control, competition format, and commercial access.
Campaign caps and spending limits
One of the most striking provisions is the proposed campaign cost ceiling. Teams will be expected to keep their total spend under €60 million, a significant gesture aimed at levelling the playing field and encouraging broader participation.
New builds are also limited—each team is permitted to construct only one new AC75 hull for the 2027 event. Additional restrictions on componentry, testing, and sailing days reflect a wider push to contain costs and prevent technology-led arms races.
Sailing time on the water is tightly rationed. For example, AC75s are grounded from 19 October 2024 to 15 January 2026, and then capped at 50 sailing days per year. Similar constraints apply to AC40s, which are also retained for Youth and Women’s regattas.
Match venue announcement justified
The protocol confirms that the Defender is solely responsible for selecting the Match venue, with a deadline of 19 June 2025. While challengers expressed concern that Naples was named before the protocol was agreed, ETNZ states that all teams were offered access to the Host Venue Agreement—provided they sign a standard NDA.
As of the statement’s release, Athena Racing had not returned a signed NDA—raising questions about whether their transparency complaints reflect process issues, or political positioning.
Crew nationality and inclusion rules
In a nod to the Deed of Gift’s ideal of friendly competition between foreign countries, the new draft protocol reinforces nationality rules:
At least four of the six race crew must be nationals of the team’s country.
One crew member must be a youth sailor under 25, and one must be a woman.
These rules apply to the main event, as well as the Youth and Women’s America’s Cup regattas—both of which are now mandatory for all competitors.
Green tech goes mandatory
In a move to position the America’s Cup as a sustainability leader, the protocol makes electric support boats (eChases) compulsory at the Match venue. Each team must deploy at least one eChase, capable of 35 knots and 75nm range, powered by batteries, hydrogen, or approved biofuels.
This reinforces the Cup’s shift toward showcasing high-performance clean tech—not just on the racecourse, but across the full support infrastructure.
Media and data access expanded
The new protocol builds on innovations from AC37 by requiring each team to supply high-quality 3D models of their yachts and to carry standardised comms systems during races.
ETNZ and the Challenger of Record also propose wider sharing of onboard telemetry and audio, giving broadcasters more content and fans a deeper look at the action. While some data protections remain in place for proprietary systems, the general trend is towards openness.
What it all means
While the release of the protocol draft won’t resolve the rift between the Defender and key challengers overnight, it does mark a turning point. With ETNZ choosing to publish the working document, challengers now have less room to accuse the Defender of acting in the shadows.
From a New Zealand perspective, the document positions Team New Zealand as both protector of tradition and enabler of innovation. But questions remain about unity in the fleet—and whether challengers like American Magic and Athena Racing will move forward under the current terms, or continue to push for change.
One thing’s certain: the protocol is no longer just an internal negotiation tool. It’s now a document in the public domain—open to scrutiny, debate, and, hopefully, consensus.
Key points
🧭 Governance and Structure
Joint Protocol Development: The Protocol is a result of collaborative input between the Defender (Royal New Zealand Yacht Squadron) and Challenger of Record (Royal Yacht Squadron Ltd), aiming to reflect broader team consensus.
Governing Rules: AC38 will be governed by the Deed of Gift, the Protocol, Class Rules (AC75 and AC40), Race Conditions, Racing Rules, and Sailing Instructions, in that order of precedence.
💰 Cost Containment and Campaign Restrictions
- €60M Campaign Cap: A strong emphasis on reducing campaign costs, with a stated target of €60 million.
- One New AC75 Hull Per Team: Each team is limited to building only one new AC75 yacht for AC38.
- Sailing Days Restrictions:
- No sailing AC75s between 19 October 2024 and 15 January 2026.
- From 15 Jan 2026 onwards, only 50 sailing days per year are permitted (outside regatta windows).
- AC40 training days are also capped at 35 days per year from 1 July 2025.
- 🧑✈️ Crew & Design Conditions
Nationality Rules: Enhanced rules to strengthen the “friendly competition between foreign countries” ideal from the Deed of Gift.
Constructed-in-Country Rules: Laminating the hull in the country of the representing yacht club remains a requirement. A defined section of an older hull can satisfy this for reused yachts.
🎥 Media & Data Access
Open Data: Race-day data from onboard equipment must be made public, enhancing fan engagement and broadcast storytelling.
3D Model Sharing: Teams must provide a broadcast-grade 3D model of their AC75 yachts, with some latitude to reduce detail to protect IP.
Voice Comm Transparency: A standardised onboard comms system will be enforced for race days, also to be used in pre-event training for consistency.
📍 Venue and Event Operations
Host City Agreement: The Defender must secure the host venue by 19 June 2025. Teams may view the venue agreement upon signing an NDA—standard practice for commercially sensitive contracts.
Match & CSS Race Conditions: COR/D to finalise Match and Challenger Series conditions by 30 June 2026 and 31 October 2026 respectively. If disputes arise, an Arbitration Panel will fast-track resolution.
⚖️ Arbitration and Legal
Arbitration Panel: All disputes under the protocol will be handled by an independent Arbitration Panel. Resorting to courts is prohibited except under specific limited conditions.
Jurisdiction: Legal proceedings, where permitted, will fall under New Zealand jurisdiction, with New York law applied to the Protocol itself.
🏷️ Commercial & IP
Media Rights and Commitments: Centralised control over event broadcast and branding, but teams retain some media rights for promotional use.
Insurance: Teams must maintain rigorous insurance levels throughout their participation, including marine, liability, and auto cover, all meeting high financial standards.
