OneWorld escapes with points penalty

AUCKLAND, New Zealand — Seattle's OneWorld Challenge avoided disqualification from the America's Cup yesterday but was penalized a point for each of the remaining stages of the challenger rounds after admitting to breaches of the regatta's protocol.

The Cup's arbitration panel announced the penalty yesterday, one day after a designer for OneWorld admitted owning a computer and computer disk containing secret design information belonging to America's Cup defenders Team New Zealand.

The decision followed a two-day hearing by the five-member panel into allegations OneWorld used secret design data belonging to three rival teams.

The panel also ordered the Seattle Yacht Club's syndicate to pay $65,000 in costs by Dec. 16.

"The panel determines that OneWorld Challenge has been in breach of the protocol in that a designer employed by OWC had in his possession a computer file, a zip disk and a computer that contained design information that was the property of Team New Zealand," the panel said in its ruling.

Team New Zealand declined to comment on the ruling.

The panel ruled that the existence of the computer and the files had not been disclosed by OneWorld at a previous hearing. Other charges against the team were dismissed.

"For the breach, the panel imposes the following penalty. OWC will lose one point in ... the semifinal of the Louis Vuitton Cup and, if it advances ... the final of the Louis Vuitton Cup and, if it advances ... the match for the America's Cup," the panel said.

OneWorld could have been disqualified after admitting to holding secret design information of a rival. However, the panel ruled that OneWorld was eligible to continue in the semifinal series against Prada of Italy.

OneWorld will start one point behind Prada in the semifinals and, if it advances, will be docked a point in the best-of-nine race challenger final series starting Jan. 11.

OneWorld spokesman Bob Ratliffe described the ruling as "a stunningly harsh indictment of honesty."

The panel was only aware of the protocol breach and existence of the computer and files because OneWorld admitted it, Ratliffe said.

He said a close examination of all teams in Auckland could possibly find similar inadvertent breaches.

The semifinals between OneWorld and Prada, and Alinghi of Switzerland and Oracle of San Francisco, due to begin yesterday, were postponed because of high winds.

The 31st America's Cup match, between the leading challenger and Team New Zealand, begins Feb. 15.

Former Team New Zealand designer Ian Mitchell admitted to the panel in an affidavit and again under cross-examination that he had a disk and computer containing design files when he left Team New Zealand and joined OneWorld.