2009 America's Cup on hold over legal dispute

MADRID (Reuters) - The 2009 America's Cup in Valencia has been postponed because of a legal dispute between holders Alinghi and BMW Oracle Racing, organizers said on Thursday.

BMW Oracle have taken Alinghi to court in New York arguing that the Swiss defender chose an illegitimate yacht club (Spain's Club Nautico Espanol de Vela) to help set the rules for the next Cup, which the San Francisco-based team say are unfairly weighted in Alinghi's favor.

Cup organizers said the ongoing uncertainty had left them no choice "but to delay the event" as "many indicators demonstrate a lack of viability to stage the event in 2009".

"During the past months, AC Management (ACM), the Societe Nautique de Geneve (SNG) and CNEV, in conjunction with the competing Challengers, have worked hand in hand to develop the rules and regulations for an event in 2009," America's Cup Management (ACM) said in a statement.

"These rules and regulations were agreed by all competitors and supported by the most recent entrants bringing the number of registered syndicates to eight, with an additional two currently filing entry documents."

Alinghi said they understood why ACM had taken their decision.

"Alinghi is now considering various scenarios for a Cup held in Valencia in either 2010 or 2011 and the implications for the team," a statement read on their official Web site (www.alinghi.com).

A spokesman for the BMW Oracle team said ACM had been hasty in their postponement decision.

"There have been many opportunities to resolve this without taking this step. It's unfortunate and unnecessary," Tom Ehman was quoted as saying by the Europa Press news agency.