In their submissions to the panel in regard to the application, both Team New Zealand and Britannia opposed it being granted.
The entry from the New York Yacht Club cited safety concerns in their bid to be excluded from the regatta in Jeddah.
The New York Yacht Club noted the US State Department had issued an advisory warning Americans to reconsider travel to Saudi Arabia because of heightened threats and said the nature of the regatta would make security difficult to guarantee.
The New York Yacht Club first voiced concerns about competing in the region when Jeddah was being considered to host the America’s Cup, before Barcelona was selected.
The panel also warned of confidentiality breaches around the initial appeal.
The 21-page application document was leaked to mainstream New Zealand media in mid-May, cast into the public eye while the matter was being revised.
All competitors denied leaking the documents.
The panel referred to it as a “blatant breach of the protocol” and warned it would take more stringent steps regarding future breaches, with several penalties available for them to hand out stated in the protocol.
American Magic were ordered to pay costs of almost $26,000 for the initial case.
The regatta in Jeddah will be the second preliminary event of the America’s Cup cycle, following the event in Vilanova i La Geltru, Spain, in mid-September.
The two regattas will be contested on the scaled-down AC40s, before a third preliminary regatta held in Barcelona next August will see the teams race their AC75s for the first time this cycle.