Cup challenger urges yacht club to rethink venue

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A bitter fight between the syndicates set to compete for the America's Cup took another twist due to the U.S.-based challenger's concerns about the Swiss-backed champion's selection of a Persian Gulf port to host February's races.

Challenger Golden Gate Yacht Club of San Francisco told the Societe Nautique de Geneve that it is considering filing a complaint with New York courts on the grounds of breach of fiduciary duty, in part because of the selection of Ras al-Khaimah, United Arab Emirates, as the site of the best-of-three showdown.

In a letter sent late Thursday, GGYC commodore Marcus Young urged SNG "to reconsider that choice in respect of your duty and responsibility as Trustee."

GGYC, which backs the BMW Oracle Racing sailing team, has already asked the New York State Supreme Court -- which has jurisdiction in America's Cup legal spats -- to reject RAK as the venue, largely because of its proximity to Iran.

Young's letter includes several links to news reports of RAK's connections with Iran and arrests of an Iranian-linked terror cell operating in RAK.

"The foregoing is a small and representative sample," Young wrote to SNG, which backs two-time defending champion Alinghi, owned by biotech tycoon Ernesto Bertarelli.

"Regrettably, terrorism and threats to public safety are, these days, a fact of life," Young wrote. "We note in your brief filed with the court earlier this week the assertion that Ras al-Khaimah has never been connected with terrorism. On the contrary, according to the FBI one of the pilots who crashed into the World Trade Center on 9/11 was born and raised in Ras al-Khaimah," he said, referring to Marwan al-Shehhi.

"If Mr. Bertarelli has encouraged your Club into this irresponsible situation, now is the opportunity to salvage the reputation of your Club, the America's Cup and the sport of sailing by leading the way out," Young wrote.

Representatives from BMW Oracle Racing and Alinghi couldn't immediately be reached for comment.

It wasn't clear what penalties SNG could face, or if GGYC would ask the court to remove the Swiss as trustee. Pursuing breach of fiduciary duty could be an offshoot of the GGYC's mid-August hiring of David Boies, a trial lawyer who has been involved in several high-profile cases in the United States.

In a motion filed Oct. 2, BMW Oracle Racing cited "grave safety concerns" for its U.S.-based crew that would be sailing a massive trimaran named USA within several miles of Iran.

A hearing has been scheduled for Oct. 27 on the venue issue and ongoing rules squabbles between the bitter rivals.

BMW Oracle Racing is owned by software mogul Larry Ellison of Oracle Corp. A twisting, two-year court fight resulted in the Americans being declared the rightful challenger, and the sides have continued to spar over rules and other matters.

Besides safety concerns, BMW Oracle Racing has argued that RAK doesn't comply with the requirements of the Deed of Gift, the 19th-century document that governs the America's Cup.

Alinghi said in its court filing that it is entitled to hold the racing in RAK based on a court order from earlier this year, and that the emirate is capable of the security and infrastructure needed to host sailing's marquee event.

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