On their arrival into Hobart, LDV Comanche lodged their protest and it was upheld by an international jury of five from Germany, Australia and New Zealand.
International jury chairman John Rountree said because of the breach of race rules — which are the International Racing Rules of Sailing under which the race was being conducted — Wild Oats XI was penalised.
Wild Oats XI was found to have breached the rules over a tacking manoeuvre at the start.
Comanche crossed the line in second place nearly 27 minutes after Wild Oats XI.
They handed Wild Oats XI a one-hour time penalty, which saw them lose line honours and their record finishing time.
Both now go to LDV Comanche.
When asked if there were any hard feelings, Mason replied: "Absolutely there is. We reckon Jimmy's getting a little bit desperate for a win. But, anyway, he can take that, that's cool."
"We're obviously shattered. We broke the record and we're going to lose that. An hour penalty, we're struggling the fathom the reasoning, but that's sport.
"It's an ocean race. In all respect, we were surprised they wanted to go to the room but they've done that and this is the result. At the end of the day, you don't want to go to the protest room – stay out of it
"We were confused that they gave us an hour. We thought the penalty, if we were in the wrong and did our turns, would have probably cost us five minutes."
With an international jury, there is no right of appeal.
This is the first case since the disqualification of the American yacht Nirvana in 1983 in which there been such drama affecting a winner.
That year the drama was played out on the Derwent River when Nirvana failed to give Condor sufficient sea room and she ran aground and was stuck for five minutes.
Nirvana went on to win the race by 2min 16sec but the next day was disqualified by the race committee and the fastest team win awarded to Condor.
