America's Cup 2021: Stars + Stripes rejected in bid to use Team New Zealand boat

American syndicate Stars + Stripes have been denied the request to use a Team New Zealand boat in the Prada Cup challenger series at next year's America's Cup.

The struggling US team – who have run out of time and money to build their own AC75 – were seeking clarification from the America's Cup independent arbitration panel if they could use a boat built in another country in the Prada Cup and take over Team NZ's 'Te Aihe'.

The Cup rookies out of the Long Beach Yacht Club in southern California previously bought a design package from Team NZ but financial struggles have left their boat only half built.

The question put to the independent arbitration panel was whether "constructed-in-country requirements" applied to just the America's Cup race against defenders Team New Zealand - therefore excluding the Prada Cup challenger series.

In the decision the independent arbitration panel confirmed the rule applies for all events.

Mike Buckley and Taylor Canfield, co-founders of Stars and Stripes Team USA. Photo / Photosport

It seems the decision could have a major impact on whether Stars + Stripes will compete in the 2021 event. They will need a boat for the first World Series event in Auckland set for mid-December.

In the application, Stars+Stripes pointed out the query over using Team New Zealand's boat was "not a hypothetical question" and said that "The Arbitration Panel's decision in this matter will have direct and immediate implications and could determine the applicant's continued participation in the remaining Events".

There was initial interest from six challengers to enter the America's Cup event but it looks more likely just the entries of Luna Rossa, American Magic and INEOS Team UK will compete.

American Magic are the only entry to arrive in New Zealand and sail on the Waitemata Harbour. Luna Rossa and INEOS Team UK are expected to arrive in October.