Loud call: Jimmy Spithill at centre of Sydney-Hobart protest

Wild Oats XI - could be hit by time penalty after near-collision with Jimmy Spithill's LDV Comanche. Photo / Photosport

Beaten America's Cup skipper Jimmy Spithill is at the centre of a Sydney-Hobart controversy involving a protest between heavyweight entries Wild Oats XI and LDV Comanche.

The crew of Comanche, helmed by Aussie Spithill, were left waving wildly towards Wild Oats XI after narrowly avoiding a collision just after the race began on Boxing Day.

Spithill was heard to yell "that's way too close" as millions of dollars worth of damage was only just avoided. In the evening radio call, Comanche owner Jim Cooney said they would complete their protest after raising the red flag at the time of the incident.

But Wild Oats XI navigator Ian Burns claimed: "We didn't think there was an infraction.

"We discussed the 720-degree penalty and decided we didn't need to under the circumstances...(and) continued on, aware of the fact Comanche put up the red protest flag."

Wild Oats XI may face a five minute time penalty, while LDV Comanche recovered well from what would have been a disastrous start to the race involving the two glamour entries.

LDV Comanche is seeking its second win in three years, while Wild Oats XI has won the race eight times. But Wild Oats XI has had rough time of it in the past two years, with gear damage forcing early retirements.

Paper work for the protest needs to be lodged within six hours of arriving in Hobart, and an international jury will make a ruling within another six hours.