TRAPANI - Hamish Pepper's contract with Mascalzone Latino has been terminated, leaving him open to join another America's Cup team should he not work out his differences with the Italian syndicate.
Pepper joined the syndicate last year but has disagreed with team bosses over the direction in which the team are going.
Mascalzone Latino Capitalia team manager Tom Weaver said his syndicate were still in discussions with the former Team New Zealand tactician.
However Pepper's name has been linked to other teams, one of which is BMW Oracle Racing.
The America's Cup rules state that sailors cannot change teams if they have worked for one syndicate for more than 180 days.
The rule came into effect last year and is designed to protect teams.
Weaver said Pepper's issues lie with the team's philosophies rather than his position on the boat.
"We all want to win the America's Cup. We have a style and philosophy to do it and Hamish has come from Team New Zealand, which is a different style and philosophy. We have to have everyone pointing in the same direction."
On the water, the Emirates-sponsored Team New Zealand provided the upset of the opening day of the seventh America's Cup pre-regatta in Trapani, Sicily, losing to France's K-Challenge by 1m 45s.
The loss was made worst by the fact the French were sailing the old New Zealand boat NZL60, which defended the cup in 2000.
After a comfortable 1m 49s win over Team Shosholoza in their first race, Team New Zealand held a good lead over the French up the first beat but performed a couple of unnecessary tacks at the top mark which allowed their opposition to close in.
Around the mark Team New Zealand set themselves up to match K-Challenge gybe for gybe, however a crew error meant they were unable to complete a gybe and were forced to go back the other way, allowing K-Challenge to reap the benefits of a massive windshift.
"To have turned such a big lead into such a deficit was frustrating," said Team New Zealand skipper Dean Barker.
"It is bloody hard. We have come here to win races and we are looking to sail the perfect race and when you have a crew issue like that it is very disappointing.
"We can still win but it puts the pressure on. We have to win every race from here on in."
Defenders Alinghi recovered from a scare in their second race against Team China, who jumped on a big left-hand shift on the startline to seize an instant four-boat-length lead over the Swiss.
However, once wound up, Alinghi's SUI75 cruised to an easy 2m 47s victory.
Team New Zealand faced United Internet Germany and Mascalzone overnight. They meet Oracle and Victory Challenge tomorrow.
Yachting: Pepper looking for another Cup berth
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