Former Team New Zealand boss Tom Schnackenberg looks set to join Italian syndicate Team Luna Rossa for the next America's Cup.
Schnackenberg was released from Emirates Team New Zealand in December. The explanation was that his role had diminished to an extent that the best solution was for him to leave the team.
The designer then announced in April he was taking legal action against the team, claiming they had deliberately shut him out of the next America's Cup.
He and his company North Sails were seeking to lift a restraint of trade covenant in his agreement so he could join another syndicate.
Yesterday, Team New Zealand announced they had reached a settlement which allowed Schnackenberg to join the Luna Rossa Challenge, formerly Prada.
Schnackenberg had agreed to cover Team New Zealand's legal costs.
Team New Zealand managing director Grant Dalton said the team was pleased to finally settle the dispute.
"I was becoming concerned about the amount of time and sponsors' money the campaign was spending on it.
"We can now move on, concentrating on the business of racing."
It is unclear how Schnackenberg will get around the cup protocol which says designers are restricted to work for one competitor.
In a sport saturated by controversy, is it likely one of the teams will protest. However, that is an issue for Team Luna Rossa to deal with.
Schnackenberg has been involved in nine cup campaigns, the first in 1977, and has been described as "the best brain in yachting".
He was part of the successful Australia II campaign in 1983 then worked for the New Zealand challenge and the Spirit of Australia before signing with Team New Zealand in 1995, which under Sir Peter Blake's guidance brought the America's Cup to Auckland.
Following the departure of Russell Coutts and Brad Butterworth to Alinghi, he held the team together for the 2003 defence - after which an independent report identified the management structure as the most important reason for the failure to retain the cup.
When Dalton was brought in to manage the next challenge, Schnackenberg was demoted to the design team.
Tom Schnackenberg
* Born: May 11, 1945.
America's Cup:
* 1977: Enterprise (US), sail designer.
* 1980: Australia, sail designer.
* 1983: Australia II, sail co-ordinator.
* 1987: Australia III & IV, sail co-ordinator.
* 1988: New Zealand Challenge, sail co-ordinator.
* 1992: Spirit of Australia, sail co-ordinator.
* 1995: Team New Zealand, design co-ordinator, navigator.
* 2000: Team New Zealand, design co-ordinator, navigator.
* 2003: Team New Zealand, syndicate head, design co-ordinator.
Yachting: Schnackenberg free to join Italian cup syndicate
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