Panel accepts illicit Team NZ designs never used

By HELEN TUNNAH

Vital Team New Zealand design secrets were obtained by rival America's Cup syndicate OneWorld Challenge, but there is no proof any of the confidential plans were used.

The findings of the America's Cup Arbitration Panel released yesterday are embarrassing for OneWorld. They confirm it had design plans from three syndicates: Team NZ, Prada of Italy and the defunct America True.

The secrets were taken to Seattle-based OneWorld by designers poached from other syndicates, including three former Team NZ staff who had tank-testing photographs, deck plans and carbon-fibre material certificates for the 2000 winner NZL60.

While describing that information as potentially "vital", the five-member panel ruled that OneWorld should not be expelled from the Cup.

It accepted OneWorld's assertions that the information was not used.

OneWorld has been penalised one competition point going into the October 1 start of the challenger series, when teams try to avoid sudden-death racing in the quarterfinals. It was also ordered to pay US$13,500 ($28,860) costs.

Team NZ head Tom Schnackenberg said the New Zealanders were pleased with the finding that OneWorld had broken the rules, and that "what are seen to be breaches don't go unpunished".

The loss of information was annoying, but Team NZ's design efforts had moved on. "We figure we always needed to build a boat a lot better than NZL60 to defend the cup successfully."

OneWorld head Gary Wright said the one-point penalty was potentially costly. OneWorld had been given credit for voluntarily disclosing to the panel that it had material it should not have.

"It was our intention to assure the panel ... that any of the information that inadvertently found its way on to our base wasn't used in the design process."

He said he did not know if the public would believe OneWorld.

"If there was any evidence that we'd used that information in our design process, I am absolutely certain that one or another of the teams would have pulled that evidence to light. The fact is that evidence doesn't exist."

Mr Wright said he would not be surprised if the issue of secrets moving between syndicates was raised again in the regatta.

"I don't doubt for a minute that we may not be the only challenger to have had some of these issues circulating within our team."

OneWorld went to the panel after it was caught in a legal battle with former operations manager Sean Reeves, a former Team NZ employee who helped to set up OneWorld after the 2000 cup but left last year.

OneWorld sued him for allegedly trying to sell its design secrets to other challengers.

Reeves denied the claims, and alleged OneWorld had obtained Team NZ design secrets. That prompted OneWorld's admissions to the panel, but the legal dispute with Reeves continues in US courts.

Reeves' claims were not admissible as evidence to the panel.

Reeves last week gave Team NZ sealed copies of OneWorld line drawings. OneWorld complained to the panel that Team NZ might have broken cup rules, but is now considering dropping the complaint.