A legal dispute between two SailGP teams went before a Delaware judge last week and was done by April 8, three days before both boats were due on the start line in Rio de Janeiro.
The case was first reported by Law360, the US legal trade publication, which covered the Chancery Court hearing in real time on April 6. Sailing Scuttlebutt then carried the story to the sailing world the following day and followed it through to the verdict.
The background
The dispute centred on branding. When American Magic co-founder Doug DeVos purchased the ROCKWOOL Racing SailGP Team from the league in February for US$60 million, he brought the American Magic name and livery with him onto the Danish boat. The US SailGP Team filed for a Temporary Restraining Order in the Delaware Court of Chancery to block the branding, claiming it caused market confusion and violated their exclusive national territorial rights.
The lawsuit also disclosed that DeVos had previously approached the US team about buying them and been turned down. He then bought the Danes instead.
Law360 noted that parallel arbitration proceedings were running alongside the court case, and that both sides arrived with serious legal representation. When Davis Polk is on your legal team, the dispute is not about principle.
The court rules
As reported by Sailing Scuttlebutt, the Delaware Court of Chancery denied the US team’s application on April 8. The defense argument held: SailGP, not the US team, controls branding rules within the championship, and the league had approved all markings on the ROCKWOOL Racing boat.
American Magic issued a statement after the ruling, first published by Sailing Scuttlebutt: “American Magic is a global brand and, as owner of ROCKWOOL Racing SailGP Team, we are proud to represent Denmark on the SailGP stage and support the growth of the most exciting sailing competition in the sport. We believe that this vision is only made possible through best-in-class partnership and sportsmanship. We are grateful for the speed and clarity of the court’s decision, which allows our team to remain fully focused on this weekend’s racing in Rio de Janeiro.”
Who is Doug DeVos?
DeVos is co-chair of Amway Corp, part of the DeVos family ownership group behind the NBA’s Orlando Magic, and the man who put American Magic on the water as the New York Yacht Club’s challenger in the 2021 and 2024 America’s Cup. Last November the team announced it would not contest the 2027 Cup in Naples, leaving no American entry in the event for the first time in its 175-year history. With the Cup behind him, DeVos put $60 million into SailGP instead.
The Danish team purchase was backed by IKON Capital and processed through Continuum Ventures, the DeVos family office. American Magic CEO Mike Cazer was direct about the reasoning: “This acquisition transforms a passion-driven project into a return-delivering, strategic investment in a fast-growing sport.”
ROCKWOOL, the Danish stone wool manufacturer that has backed the team since it entered the league, remains title partner through 2032. The team races as Denmark, carries a minimum of three Danish athletes under SailGP nationality rules, and is driven by Nicolai Sehested. It also holds the SailGP speed record of 103.93 km/h, set at the Germany event in Sassnitz during the 2025 season.
Back to racing
With the court ruling behind them, both teams raced at the Enel Rio Sail Grand Prix on April 11 and 12, SailGP’s first visit to South America. After three rounds of Season 6, Great Britain lead the standings, Australia sit second, and the US team are third. Denmark are eighth. DeVos did not spend $60 million to stay eighth.
