Black Boats' secrets back at team HQ

By EUGENE BINGHAM and HELEN TUNNAH

Secret Team New Zealand design plans from the last America's Cup have been returned to the syndicate.

In a major development in the cup spy scandal, Black Boat plans allegedly used by a rival syndicate have turned up at the team's Auckland base.

Sources told the Weekend Herald this week that drawings of NZL60 and NZL57 were returned with an affidavit alleging that they had been recovered from another syndicate.

Team NZ would not confirm yesterday that it had received the package.

The spy drama began last year when challenger OneWorld launched court action against Sean Reeves, who left Team NZ in 2000 and lured others with him to the Seattle-based team.

In a US court case that is still continuing, the syndicate alleged that Reeves had tried to sell secrets to another team after he left OneWorld in May last year.

Reeves has denied the allegations and made a counter-claim accusing OneWorld of obtaining sensitive Team NZ design and technical information.

The plans returned this week are believed to have been used by a rival syndicate to gain a valuable insight into New Zealand's design secrets in its 2000 defence of the cup.

Team NZ's designers have produced innovations for the boats that will race next year.

Syndicate head Tom Schnackenberg has said of the design process for next year's defence: "We have always believed that to defend the cup successfully we are going to have to move well on from 2000, and we have made good progress to that end."

Team NZ rules adviser Russell Green would not comment yesterday, except to say: "We are awaiting the decision of the arbitration panel on the use of design information by other syndicates."

Team NZ has filed affidavits to the panel alleging that OneWorld had vital data, including substantial information on Team NZ's hull and rigging programme, and the structure and strength of its 2000 winners.

Prada of Italy has also told the panel OneWorld obtained confidential material on their sail programme from the last regatta.

OneWorld has admitted to the panel that it did have some "minor" Team NZ design data, but said the information was never used in its own design process.

A ruling by the panel is expected within weeks after a breakthrough yesterday in talks to insure the panel against lawsuits.

Decisions had been held up until the syndicates agreed on a deed of indemnity and insurance cover for the five members of the panel.

A deal hammered out by Team NZ and the nine challengers means none of the syndicates can sue the panel, with continuing insurance provided in case anyone breaks the deal or any other party decides to launch any legal action.

The agreement must now be signed by all 10 syndicates, and the yacht clubs they represent, which could take up to two weeks.

Syndicates now spend up to US$100 million ($220 million) on campaign costs, making panel decisions critical.

The panel can fine syndicates, penalise them points or even expel them from the event for breaking cup rules, one of which bars the transfer of design information between syndicates.

nzherald.co.nz/americascup