Sailing: Troubled waters in the America's Cup

New dictatorships always take a little time to bed down and are bound to ruffle some feathers along the way, but the brave new world of America's Cup racing, on the water at least, is in good heart. Ashore, it is no surprise that the £1.5bn first staging of the event in Europe has led to conflict.

Seven of the 11 challengers miss the semi-final cut having hardly been able to reach full stretch because of unusually soggy weather. They had a disjointed 23 days to display the results of years of work. The big programme teams have taken the semi-final places: all are agreed that the next five weeks should see some of the tightest America's Cup racing ever.

Not that the seven have been whitewashed. Even the smaller teams have shown fast boats which could produce an upset. And the cut is due to go to the wire.

When Sweden's Victory Challenge beat the home team, Desafio Espanol, yesterday a vintage conspiracy script was set up. In their last two races the Spanish must race both the table-topping BMW Oracle and the proud Italians, Luna Rossa.

The Swedes meet first Team New Zealand and then Mascalzone Latino, who had beaten Spain, been ordered to resail the race, lost it and were then subjected to some abusively triumphal gestures from the Spanish. Of course, no one would ever throw a race, but if Mascalzone were to lose that would give Sweden a one-point ticket to the semi-finals.

Neither Team New Zealand, unbeaten in this second round robin, nor BMW Oracle can afford to give an inch in their bids to be top of the points table at the end and so have the right to choose their semi-final opponent.

The spring of sailing that has seen 12 teams plough anything from £14m to £84m into their programmes before pouring champagne like water down the throats of thousands of hospitality guests, was meant to move the event from behind an impenetrable owners' enclosure into the public arena.

As the millionth visitor to the America's Cup village, part of a huge investment by the city itself, was presented with certificates and prizes last week, that might appear to have happened.

But behind the scenes there has been some bitter fighting. Asked what mark out of 10 he would give the restructured event, which now has one organisation to control both the challenger knockout races and the eventual match with the defender, plus nearly everything else, Hamish Ross, the lawyer who drew up the protocol for the defender, Alinghi, said: "Nearly eight out of 10."

Vincenze Onorato, an Italian whose Mascalzone Latino syndicate has been eliminated, said no, he would give 10 out of 10 for the way in which Alinghi and its wholly owned company, America's Cup Management (ACM), had looked after its own interests. "But I would give only three out of 10 for the way they have looked after the other teams and their sponsors," he said.

Even before the 2007 cup has been staged, what was an old event in a new guise is already in another period of change. When it finishes, at the latest on 7 July, it will peel off the skin of what has been the 32nd defence to reveal new wings and new colours.

Ross insists that no negotiations are under way with a challenger of record, which this time is Larry Ellison's BMW Oracle syndicate. The Californian's representatives on Bertarelli's motor yacht Vava consummated the deal the second Alinghi crossed the finish line to win the cup in Auckland in 2003. The two are understood to have been having dinner together again recently.

Negotiations or not, the new, and probably tighter, protocol will already be in draft. At the heart of all the grumbling, apart from the organisation of the television, is the way in which the challengers have lost control of their own destinies. They no longer run their own knock-out series. If they want to take part they have to sign a participation agreement which includes a programme drawn up by the defender-owned ACM. They cannot organise their own regattas.

So the clarion call has been for neutral management by an event organiser jointly run by the defender and challengers with a chief executive officer appointed by both sides. Ross will hear none of it.

"Giving away control is a fundamental issue," he says. "Would Formula 1 be the same if the competitors ran it instead of Bernie Ecclestone?" he asks. "Our man [Bertarelli] has put his wallet on the table. The teams need to front up if they want a say." On the other hand, Alice in Wonderland rules also prevent Bertarelli's syndicate from taking television footage of the America's Cup harbour, which is designated an ACM arena.

Others want an Ecclestone but one that is appointed by them, not self-appointed.

In theory a Challenger Commission represents all their interests but Onorato says dejectedly: "It has no chance at all to change the ideas of the defender. The neutral management concept is hopeless. We have clearly seen how ACM wants to control everything." ACM does not speak to the commission and has even withdrawn the Foredeck hospitality club pass of its chairman, Alessandra Pandarese.

"If you want to change things, you have to win the cup," says Luis Saenz, legal advisor to the Luna Rossa campaign headed by Prada boss Patrizio Bertelli.

Progress has been made by South Africa's first boat, Shosholoza (a Zulu word which means "forward"), designed by Britain's Jason Ker. For them, Valencia has been a resounding success and the reputation of South Africa has been enhanced. They will probably be back because, for them, it is the sport which is important.

Just a sail away: The contenders for America's Cup glory

The Louis Vuitton Cup challenger semi-finals are a best-of-nine series starting next Monday. The leading scorer from the two rounds-robin can choose its opponent. The challenger final starts on 1 June, and is again best-of-nine. The winner of that series will meet the defender, Switzerland's Alinghi, in a best-of-nine series starting on Saturday 23 June. From these five teams will come the four semi-finalists:

* BMW ORACLE

The San Francisco-based team which was beaten by Alinghi in the last challenger final, in Auckland in 2003. Skippered by the New Zealander Chris Dickson, its largely Kiwi crew also includes the owner Larry Ellison, the billionaire founder of the Oracle software company. So far looking like the sharpest package.

* TEAM NEW ZEALAND

Back after their humiliating defeat at the hands of Alinghi in Auckland - and the team which should be the tightest. Dean Barker will skipper, but they have the British Olympian Ben Ainslie as emergency back-up. The question is: how much development and modification do they have in the locker to add vital speed?

* LUNA ROSSA

Used to be known as Prada, and is backed by the head of the fashion house, Patrizio Bertelli. Has adopted a new management style and brought in the Australian James Spithill as helmsman. Seem to have had a big change of design heart and will need an edge not so far seen if they are to make the final, as they did in 2000.

* DESAFIO ESPANOL

Carries local hopes and was always the dark horse. Has Karol Jablonski, a Pole, as helmsman and Eddie Warden Owen, a Welshman with long-time Spanish connections, as coach. A well-drilled and organised two-boat outfit but will need to find an extra gear if it is to progress beyond the semi-final stage.

* VICTORY CHALLENGE

The Swedish outfit has threatened all the way through but has never found a rhythm. While the 2003 Team GBR grinder Ian Weighell is the only Briton regularly on the crew, the team is packed with other Britons in terms of coaching, strategy and shore-crew back-up, and in Mani Frers it has an innovative designer.