Grant Dalton is expected to tell Royal New Zealand Yacht Squadron members tonight Team New Zealand has no option but to defend the America's Cup offshore, according to a former team member.
The three month exclusive negotiation period with the Government ends on Thursday.
It's understood there is a significant gap in what the Government is prepared to offer and what Team New Zealand wants, and Dalton will attempt to convince the squadron that the best chance of mounting a successful defence is to hold the next regatta in the Northern Hemisphere.
That won't sit well with some, and the possibility of legal action looms.
![It's understood there is a significant gap in what the Government is prepared to offer and what Team New Zealand wants. Photo / Michael Craig](https://www.nzherald.co.nz/resizer/v2/KUJMECDR4ZRRSGENU4OWJRIROA.jpg?auth=08c456ce61e6712001c92ad92cf925ea9ed7c953d2488c0e33cb36764507663a&width=16&height=9&quality=70&smart=true)