KEY POINTS:
It's supposed to be yachting but the next America's Cup is at present resembling more a game of poker.
As the clock ticked past midnight yesterday morning, so any chances of a settlement in the vexed Cup wrangle were ticked off - revealing supposed attempts to negotiate an accord as so much bluffing in a high-stakes game of poker.
Midnight on Friday (NZT) was the deadline for any settlement between BMW Oracle and embattled holders Alinghi, locked in the court action that could see the next America's Cup delayed for two years or even longer.
Delay seems to be the most likely result and Alinghi may even make a formal announcement this week - although Oracle's continued bullish behaviour suggests that the American syndicate headed by billionaire Larry Ellison thinks it has a strong legal case and can force either a head-to-head duel in multi-hulls against Alinghi or persuade the Swiss to climb down from its protocol for the next America's Cup, widely viewed as unfair.
A judgment is expected soon in the case brought to the New York Supreme Court by Oracle, based on the fact that Alinghi's choice as Challenger of Record, Spain's CNEV, is illegitimate. However, matters really hinge on the rules for the next tournament as cooked up by Alinghi in its protocol.
The past weeks have seen painstaking negotiations around the rules to settle the matter and halt the court case. That all came to a shuddering stop when Oracle did not meet Alinghi's midnight deadline for settlement.
But it now appears the negotiating was mere window dressing - with the strongest indication the fact that new Oracle sailing supremo, Russell Coutts, played a leading role in the 'yes-we've-solved-it, no-we-haven't' shenanigans that have been played around the ongoing court action.
The latest manoeuvrings around Oracle's court action saw Alinghi pressing Oracle hard for a settlement - until Coutts stumped up with five previously unseen and undiscussed conditions, effectively ending negotiations and leading to Alinghi's midnight deadline. Now both parties are waiting for the NYSC judgment due later this month. However, observers close to the issue think that Coutts' and Oracle's actions show that the American syndicate thinks it has a royal show of winning.
"It's been interesting to see Russell come out hard like that," said one Cup source close to Oracle. "It really does look like Larry Ellison and Russell think they have the whip hand.
"Previously we weren't sure that Russell was 100 per cent behind the court action and that he wanted to win the Cup on the water - but this makes it look as though he also thinks they have the upper hand and that this is the best way forward for Oracle."
The America's Cup Deed of Gift means that if the court finds for Oracle, their challenge is the 'next cab off the rank'. Their challenge specifications were based around two 90ft multi-hulls, in a head-to-head challenge which excludes other challengers, including Team New Zealand - now becalmed like Britain's Team Origin, South Africa's Shosholoza, Team Germany and Desafio Espanol.
The date for the multi-hull challenge is set down for October 2008 - but no matter who wins or loses, an appeal is likely. Most are predicting that will delay the Cup past Alinghi's date of 2009 and possibly past 2010.
"But it looks like Oracle think that Alinghi are bluffing because they need more challengers [there are only five in for the next regatta, after 11 in Valencia this year]. That is why Russell is being so hard-nosed."
Oracle may be confident they will be able to get Alinghi to back down on the protocol and become the Challenger of Record or, if they lose the court action, still be able to compete as Alinghi is short of challengers.
