Spanish team wins challenger ruling

A Spanish yacht club will be the official challenger in the next America's Cup yachting race, a New York appeals court ruled on Tuesday, handing a key legal victory to defending champions Alinghi.

The ruling, issued by the New York State Appellate Division, reversed a lower court's ruling declaring a challenge by the Spanish club, Real Federation Espanola de Vela (CNEV), invalid in favour of a challenge by the US-based BMW Oracle.

"We hold that CNEV was organised as a yacht club at the time of its challenge," the appeals panel wrote in the 3-2 decision.

Swiss-based Alinghi, sponsored by Societe Nautique de Geneve (SNG) yacht club, has sparred for months with BMW Oracle, owned by Silicon Valley billionaire Larry Ellison, over how, when and where the prestigious race should be held.

"The Appellate Division's decision is a significant victory for both SNG and sailing fans throughout the world as it permits the America's Cup to proceed as a multi-challenger series as originally contemplated with CNEV as the Challenger of Record," Alinghi lawyer Barry Ostrager said in a statement.

The challenger of record is able to name the type of boat to be used for the race.

At issue before the appeals court were rulings by Judge Herman Cahn declaring BMW Oracle the challenger of record and saying the America's Cup should be held in March 2009 in Valencia, Spain, or at another location chosen by Alinghi.

A ruling by Cahn in May set up a best-of-three, head-to-head series for the next edition of yachting's biggest prize rather than the traditional multi-boat competition to determine a challenger.

Alinghi appealed the rulings because it preferred a later race date, a separate challenger of record and restoring America's Cup tradition by allowing a larger field of challengers.