KEY POINTS:
Team New Zealand yachting boss Grant Dalton has ripped into his arch rival Ernesto Bertarelli, accusing him of tarnishing the image of the 156-year-old America's Cup contest.
Team New Zealand announced today it was taking Bertarelli's Alinghi syndicate to court to seek "tens of millions of euros" compensation
after Bertarelli delayed the next regatta, probably until 2011.
Bertarelli and Alinghi had done a lot of damage, Dalton said.
"It has done damage to the cup and to the brand America's Cup. The whole event was on the crest of a wave which has crashed on the shore."
The next regatta was to have been sailed next year but was delayed because of a bitter dispute over the rules between Alinghi and rival American syndicate Oracle.
Dalton said today Alinghi had breached its contract with Team New Zealand to run the contest next year.
Team New Zealand filed two actions in New York against Alinghi, America's Cup Management which organised the event and which was controlled by Bertarelli, and the defending yacht club, Societe Nautique de Geneve.
One legal action claimed a breach of contract for the delay and the second was an anti-trust action which claimed Alinghi abused its powers under the Deed of Gift and had harmed the event and challenging syndicates.
Dalton said although the team had had "fantastic support" from existing sponsors, the breach of contract had made it impossible to go door knocking for more funding and Team New Zealand had made 25 people redundant.
He said the delays had been driven by Bertarelli.
"I was head of his fan club. There has been a massive change in the environment since the end of the last cup.
"I could never in a thousand years have envisaged the event would go from such a pinnacle to the environment it now finds itself in."
Dalton said the protocol adopted by Alinghi badly affected entries and that made it harder to get funding for the regatta from the City of Valencia.
"Basically in a nutshell we had a deal. He has reneged on that deal and we are looking for compensation."
Dalton said the final compensation being sought by Team New Zealand would depend on how long the regatta was delayed.
He said he could also not say how the court would assess the damage to Team New Zealand.
"But every day he delays the meter is on as far as we are concerned."
He said the design process on the 90-foot racing yacht was "trickling along" until it was time to go again.
Dalton said Team New Zealand had a "meagre amount and we must cut our cloth accordingly."
Dalton was emphatic no government or sponsor money was involved in the legal action.
"It is supported by a group of friends of the team. It won't be cheap."
Dalton said a legal challenge was "terrible" and not the position a New Zealander would want to be in.
He said Team New Zealand ideally wanted the next event - which would cost more than the $100 million spent on the last campaign - in 2010.
- NZPA
