The America’s Cup has long been a beacon of elite sailing, a trophy of honour, innovation, and international prestige. But the wind has shifted. Overnight, two major challengers—NYYC American Magic and Athena Racing—issued starkly similar public statements raising serious concerns over the governance and transparency of the 38th America’s Cup.
Both teams point the finger at the Defender, Emirates Team New Zealand, alleging that despite extended negotiations, a fair and transparent sporting protocol has yet to materialise. Their grievances centre on two key issues: the unexplained early announcement of Naples as the host city, and the Defender’s reluctance to agree to a collaborative and open process around the protocol’s development. (Updated: 1045am 23/05/2025 : Read about Emirates Team New Zealand pushes back on AC38 criticism.)
Challengers speak with one voice
The timing and content of the statements suggest a coordinated release, and it’s hard to miss the growing sense of unease. American Magic’s statement, issued on behalf of the New York Yacht Club, places the blame squarely at the Defender’s door:
“DESPITE THE BEST EFFORTS OF THE CHALLENGERS – LED BY THE CHALLENGER OF RECORD – TO NEGOTIATE IN GOOD FAITH, THE DEFENDER HAS BEEN UNWILLING TO COMMIT TO THE TRANSPARENCY AND COOPERATION NECESSARY TO SECURE A FAIR PROTOCOL.”
This lack of clarity, they argue, threatens to undermine not only their campaign but the long-term potential of the Cup itself. The team makes it clear that their future participation in the 38th America’s Cup is now in question unless “meaningful changes” are made.
Athena Racing, as the Challenger of Record representing the Royal Yacht Squadron Ltd., goes further by expressing frustration over the announcement of Naples as the host city, made before an agreed protocol was finalised:
“TYPICALLY, A HOST AGREEMENT HAS ONLY FOLLOWED THE PUBLICATION OF AN AGREED PROTOCOL… IT IS THEREFORE DIFFICULT TO UNDERSTAND WHAT EXACTLY HAS BEEN AGREED BETWEEN TEAM NEW ZEALAND AND THE GOVERNMENT OF ITALY.”
They rightly point out that such agreements carry commercial obligations and potential liabilities for all challengers—none of which have been disclosed or negotiated. While supportive of Naples as a potential host, Athena Racing says the announcement was “premature, at best.”
A breach of trust?
There’s a shared tone of disappointment running through both statements—not just over the slow progress, but over what they imply is a fundamental breach of trust. American Magic calls on the Defender to “restore the elements of fair competition, transparency, and respect for all sailors,” while Athena Racing hints at a loss of confidence in the negotiation process itself.
What’s especially troubling is that these statements come after more than half a year of talks. That two of the most prominent challengers are now making such public expressions of discontent suggests their concerns are not minor frustrations but reflect systemic issues in the process.
The protocol problem
The America’s Cup protocol is the bedrock of each campaign. It outlines the rules of engagement, the regatta format, and the obligations of each team—financial and otherwise. Without it, teams cannot effectively plan, secure sponsorship, or even begin design and build processes for their race boats.
A delay in protocol delivery therefore doesn’t just slow the process—it jeopardises entire campaigns. From design and logistics to staffing and funding, every element of a team’s campaign depends on the certainty that a well-defined, fair and mutually agreed framework provides.
Defenders in silence
As of now, Team New Zealand has not issued a public response to the statements. (Updated: 1045am 23/05/2025 : Read about Emirates Team New Zealand pushes back on AC38 criticism.) Their announcement last week, naming Naples as host for the 2027 America’s Cup, was met with a mixture of enthusiasm and surprise. But as Athena Racing points out, such announcements absent a binding protocol may be seen less as progress and more as an overstep.
From a New Zealand perspective, the shift away from local hosting has already left some supporters questioning the direction of the team. Now, with America’s Cup veterans like NYYC American Magic and key stakeholders like Athena Racing openly pushing back, the pressure is mounting on Emirates Team New Zealand to step up with answers.
Where to from here?
Backers, and potential challengers are left in limbo. The silence from the Defender may be strategic, but it’s growing louder by the day. (Updated: 1045am 23/05/2025 : Read about Emirates Team New Zealand pushes back on AC38 criticism.) The America’s Cup is built on competition, but competition can’t begin until the course is agreed.
Both NYYC American Magic and Athena Racing have made their positions clear: they remain committed to the Cup, but not at any cost. And unless the Defender returns to the table with genuine intent to cooperate, the 38th America’s Cup may find itself sailing into troubled waters before a single boat is even launched.
Calm before the storm?
This may prove to be a critical moment for the sport’s most prestigious trophy. The Challenger of Record and the United States’ top team are united in their call for change. Their message to Emirates Team New Zealand is clear: the time for showmanship is over. The sport—and all who believe in it—deserve a transparent, fair, and collaborative pathway forward.
Overnight both Athena Racing and American Magic have come out with very similar statements, voicing their concern about the transparency being shown as the 38th America’s Cup is evolving.
Comment requester from ETNZ
Boating New Zealand has reached out to Emirates Team New Zealand for comment on our article and the questions raised by the overnight statements, we are waiting for their feedback.
NYYC American Magic: Team Statement
Over the past seven years, we’ve competed with pride, purpose, and perseverance in two editions of the America’s Cup. It has been an honor to represent the New York Yacht Club and the United States on the global stage in one of the most storied competitions in sport.
As we look ahead to the 38th America’s Cup, we find ourselves at a crossroads and feel that we must provide an update to our teammates, partners, donors, and supporters.
Despite the best efforts of the Challengers – led by the Challenger of Record – to negotiate in good faith, the Defender has been unwilling to commit to the transparency and cooperation necessary to secure a fair Protocol. Without the structural framework necessary for challengers to pursue viable campaigns, it will remain extremely difficult to unlock the America’s Cup’s potential as a modern, globally relevant sports property.
We continue to support the Challenger of Record in their efforts to secure an open and balanced Protocol, as without the meaningful changes they are advocating, it is difficult to see how NYYC American Magic can participate in the 38th America’s Cup.
While we remain committed to the America’s Cup and would welcome the opportunity to compete under a fair protocol, we are equally committed to integrity, transparency, and the long-term health of the institution that is the America’s Cup. We urge the Defender, as Trustee, to work in good faith with the Challenger of Record to restore the elements of fair competition, transparency, and respect for all sailors, globally, who are ultimately the beneficiaries of this time-honored trust.
Athena Racing’s full team statement
Athena Racing, representing Royal Yacht Squadron Ltd. as Challenger of Record for the 38th America’s Cup, is concerned by the ongoing lack of transparency around the recent announcement of a Host City for the Cup in 2027 and the impact this is having on the main goal of negotiating a fair sporting protocol.
For seven months Athena Racing has been in negotiations on a protocol for the 38th America’s Cup with the Defender, Team New Zealand, on behalf of all the Challengers – with the aim to deliver a fair sporting framework and commercially viable event for all America’s Cup stakeholders. Despite recent progress being made, significant barriers remain.
Typically, a host agreement has only followed the publication of an agreed protocol. In the absence of an agreed protocol, it is therefore difficult to understand what exactly has been agreed between Team New Zealand and the Government of Italy as the sporting framework and details of the event do not yet exist.
Any hosting agreement will bind challengers to financial and organisational obligations, as well as potential liabilities, making its disclosure fundamental to teams’ participation and commitment to the 38th America’s Cup.
While we have every confidence that Naples can be a magnificent host for the America’s Cup, we believe that transparency and cooperation between the Defender and all Challengers is vital for the Cup’s future and therefore the recent announcements from the Defender are premature, at best.
