Subject: [NEXTEL-1] America's Cup, Craig McCaw, Trades Secretes, £1 Million, Lawsuits

From: Marcel <[email-masked]>
Date: Tue, 19 Nov 2002 03:11:26 -0500

America's Cup, Craig McCaw, Trades Secretes, £1 Million, Lawsuits

Nextel a OneWorld Sponsor

Just another example of:

"How Business Gets Done"

(Background)

 SCUTTLEBUTT No. 1005 - February 12, 2002

SERIOUS STUFF

Willful wrongdoing litters 152 years of the America's Cup yet the allegations
detailed by New Zealander Sean Reeves, that the Seattle-based OneWorld team
he help set up illegally obtained design secrets, are probably the most serious in
cup history. Reeves, a former New Zealand Olympic sailor who was Team New
Zealand's rule adviser in 1995, has been at odds with the OneWorld team since he
left last year, despite a separation agreement.

The battle is fought on two fronts: a civil action going through the Seattle courts
over damages and defamation, and with the cup's arbitration panel over whether
OneWorld will be penalized for breaching the cup protocol rules. In each, the
veracity of Reeves's evidence is the crux.

Reeves's latest declaration and counter-claim court papers name seven designers,
sailors and technicians who allegedly either brought, sold or passed on
confidential details. The most serious charge is that in August 2000, just four
months after Team New Zealand won the last cup, their 1995 and 2000 winning
designer, Laurie Davidson, was allegedly involved in a £1 million transaction of the
Kiwis' secrets. Reeves alleges that this included plans of past and future boats. It
is these allegations in the civil suit that OneWorld have "unclean hands" which will
most upset the team, backed by Craig McCaw, the telecommunications
billionaire, and Paul Allen, the co-founder of Microsoft.

It is further alleged that OneWorld's chief executive, Gary Wright, approved this
purchase; that OneWorld had in their possession photographs of tank tests and
measurement certificates of the TNZ boats; and that colleagues of Davidson
allegedly brought further design information from the hard drives of TNZ's
computers to OneWorld.

AmericaTrue designer, Phil Kaiko, also joined OneWorld and Reeves alleges that
he brought with him the design of his 2000 cup boat when he was hired, and that a
team-mate of Kaiko allegedly brought along detail of a special and unique
boat-building process that had been used on AmericaTrue.

OneWorld have already admitted that some of the charges are true in their
submission to the panel before Christmas, notably about knowingly having
AmericaTrue information. This was a mea culpa pre-emptive admission made nine
months before racing starts in the challenger trials in October, when a rival team
might have lodged a protest. This way, OneWorld could learn early what penalty
they might receive.

Some might feel that in owning up to this charge, OneWorld were acknowledging
only something that happens in every cup team anyway. Just as when a Formula
One designer swaps teams, people's memories of past work cannot be erased.

However, Reeves's latest allegations in the civil action are so explicit, so serious
and so damaging that to find any truth in them would cast grave doubts over
OneWorld's future. Hence the pivotal nature of Reeves' evidence. A swingeing
points fine even before racing has started might make OneWorld wonder if it would
be worth continuing. - Tim Jeffery in Auckland, The Telegraph, UK

Full story: sport.telegraph.co.uk/sport/

ONEWORLD RESPONDS
In a brief press conference held at the OneWorld Challenge base Monday in
Auckland members of the senior management of the OneWorld syndicate replied
to press allegations that they had obtained designs and information illegally.
Following is the full text of a prepared statement written by Gary Wright CEO of
the OneWorld Challenge:

Given the sensational headlines finding their way into the press these last few
days, from a certain Mr Reeves, I believe you all deserve a note from me, to give
you OWC's perspective. Firstly there is nothing of any surprise in Mr. Reeves
allegations. We expected this to happen, however we have tried to keep this
matter dealt with in the appropriate forum, namely the US courts and the
Arbitration Panel. It has always been our desire to ensure that the honor, tradition
and prestige of the America's Cup is upheld. You have all received our first
Submission to the Arbitration Panel. A further Submission will be with you in a
matter of days and I am confident that all will be clearer then.

In the early days of OWC certain Rules issues were handled by Mr. Reeves during
his time at the helm of our first Auckland office. Certain questions have been
raised about Reeves' actions whilst in this position with us. These questions have
formed the basis of the Submission that you have all seen, and the Full Grounds
of which you will see further in the next few days. Obviously we could have sought
not to pursue this matter and hide it from you all and reach a cozy settlement with
Mr. Reeves, rather, we chose the more difficult path of a through investigation of
OWC's early operations. This we have undertaken.

Clearly we have made some mistakes, but we believe these to be minor and not
beneficial to the OWC's design process. If we have not raised any of Reeves
allegations in the Submission to the Panel, then it is because there are no
grounds or basis in fact. They are untrue and did not happen.

I am saddened that several of our team members, men of integrity and of good
standing in the America's Cup world, have had allegations leveled at them by
Reeves. I and all of us at OWC plan to stand behind these individuals fully and
without reservation.

We apologize for the disrepute this action with Reeves has bought this event into
and will do our up most to set the record straight. We remain happy that our future
is in the hands of the Arbitration Panel, and that truth, honor and integrity will
prevail.

Posted on the Louis Vuitton Cup website: www.lvcup.com

 SCUTTLEBUTT No. 1005 - February 12, 2002

http://www.sailingsource.com/scuttlebutt/1005.html

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