In a seven-page document, which until recently was kept secret, the International Sailing Federation (ISAF) has given the Swiss holders of the America's Cup carte blanche with the sailing rules for the event, in exchange for a sum of €150,000 (£136,000).
The ISAF has granted the Société Nautique de Genève (SNG), which is represented by the Alinghi team, the right to amend the universally used Racing Rules of Sailing, and their interpretations. The ISAF has also agreed to waive all commercial and media rights to the event and to pay all the costs of anti-doping testing.
The US challenger, the Golden Gate Yacht Club, which will be represented in the 2010 race by the BMW Oracle team, fears the agreement gives the Swiss holders an advantage that is "grossly unfair" and threatens to bring the sport into disrepute.
In a letter to the ISAF the challenger's skipper, Russell Coutts, has queried almost every item of the "secret" agreement. "[The] ISAF has overstepped its authority and given blanket advance approval for any change in any racing rule," he wrote, adding that "there is no independent review available to the Golden Gate Yacht Club".
"We don't know when we go out to race what trick they are going to pull," said the challenging team's owner, Larry Ellison. "We can finish first, only for them to say, 'You have broken this or that rule.' We probably will be ruled out of every race."
SNG is also demanding that all members of the race jury be bilingual in French and English, which is in direct contravention of ISAF regulations in which English is the only language for the sport, until the ISAF council votes otherwise. It is particularly remarkable as the majority of the Alinghi team that will represent the SNG are not Swiss, but New Zealanders and others whose native tongue is English. In making this demand, SNG is effectively ruling out many potential high-level members of the jury.
ISAF claims that its appointments working party has suggested the top people for the jury based on their technical skills and "as it happens three of the five are fluent in French as well as English". The move is seen by some highly qualified international judges as being unnecessarily restrictive, particularly as two jurists must be "practising lawyers".
GGYC and BMW Oracle are considering further action in the New York courts, where the America's Cup is held in trust, against SNG for failing to meet its duties under the Deed of Gift that controls the way the cup races are managed.