America’s Cup Faces Legal Challenge Over Governance and Charitable Trust Status
Naples’ preparations to host the 38th America’s Cup in 2027 are underway, but a legal complaint filed in New York is raising questions about the governance of the historic sailing competition and its status as a charitable trust. The complaint, brought by former America’s Cup insider John Sweeney, alleges serious violations of the Deed of Gift, the foundational document governing the event.
Complaint Filed with New York Attorney General
John Sweeney, a former sailor with campaigns including America True and Oracle, and with experience in IACC boat management, has filed a complaint with the Charities Bureau of the New York Attorney General against the Royal New Zealand Yacht Squadron (RNZYS), the current trustee of the America’s Cup. The complaint, filed on February 12, 2026, centers on concerns that the RNZYS has made fundamental changes to the Deed of Gift without the required approval from the New York Attorney General or the courts.
Core of the Dispute: The Deed of Gift
The America’s Cup is unique in that its rules cannot be altered without the approval of the New York Attorney General. Sweeney’s complaint alleges that the RNZYS has violated the Deed of Gift by eliminating required measurement certificates, allowing foiling boats that do not meet the Deed’s requirements for load water-line, beam, and draught, and replacing yacht-club governance with for-profit corporations. These changes, according to Sweeney, bind all future Cup winners to sail under RNZYS rules indefinitely, a practice he deems illegal.
Governance Concerns and the America’s Cup Partnership
A key point of contention is the establishment of the America’s Cup Partnership (ACP), which Sweeney argues has shifted governance from yacht clubs to for-profit entities. This move, he contends, extends beyond the current cycle in Naples and potentially predetermines the rules for future America’s Cup competitions, conflicting with the Deed of Gift’s cycle of negotiation between the Defender and Challenger of Record.
Attorney General’s Options and Current Status
The New York Attorney General’s office has assigned case number 26-020937 to the complaint. The Attorney General has several options, including launching an investigation, authorizing Sweeney to proceed as a relator, or taking no action. Legal experts note that the case is currently in an exploratory phase, with the Charities Bureau still assessing the boundaries of its potential intervention.
Focus on Future Governance, Not Just Naples
While the immediate focus is on the 2027 event in Naples, the core issue is the long-term governance of the America’s Cup. The concern isn’t necessarily the current format of the competition, but rather the attempt to impose rules on future Cups. Sweeney’s challenge, despite being described as forceful, highlights a sensitive area regarding the future direction of the America’s Cup.
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