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

From: Marcel <[email-masked]>
Date: Tue, 19 Nov 2002 03:22:29 -0500

SCUTTLEBUTT No. 1139 - August 19, 2002

COMMENTARY

Seattle's OneWorld Challenge have been penalised one point by the America's
Cup arbitration panel for possession of design drawings from three other teams,
including defenders Team New Zealand. In an age of billionaire-backed syndicates,
the panel felt a monetary fine as sanction in a year-long scandal was
meaningless. How harmful the one-point penalty is will become evident when the
Louis Vuitton challenger trials start on Oct 1.

The deduction will be made at the end of the pair of rounds-robin on Nov 1 when
the field of nine is reduced to eight. At the very least it will affect the rankings and
may pit OneWorld against a stronger rival as the trials move to a knockout format.
If OneWorld's boats are fast, this should not trouble them, but if they are caught
up in the pack, then it may be decisive and has been enough to eliminate the likes
of Dennis Conner in previous years. - Tim Jeffery, The Telegraph, UK, full story:
sport.telegraph.co.uk/sport/

PERSPECTIVE
The America's Cup has a long history of infighting, espionage, back-stabbing and
dirty tricks. Cast in that light, according to the author and marine historian John
Rousmaniere, the current contretemps are little more than business as usual. "It's
a great story with some great characters," said Rousmaniere in a phone interview.
"But sometimes it goes a little astray.

* With a combustible mix of endless and highly interpretive rules, ambitious
players and skyrocketing budgets, Rousmaniere said he was not surprised that
lawyers were playing a prominent role in the lead-up to the Cup. "When things get
too technical and heated for the rest of us, that's when you hire lawyers," he said.
"They serve as mediators. I think they have a place." - Herb McCormick, New
York Times, full story:
www.nytimes.com/2002/08/18/sports/othersports/18BOAT.html

FACTS FOUND
(A story by Helen Tunnah in the NZ Herald included a list of the facts found by the
America's Cup Arbitration Panel in the matter concerning the OneWorld Challenge
America's Cup syndicate.)

Former Team NZ designer Laurie Davidson did not work for OneWorld before the
end of his Team NZ contract in 2000.

Davidson did have Team NZ tank-testing photographs that were "briefly and
casually" shown to other OneWorld crew.

He had Team NZ measurement certificates. The panel accepted he did not use
them but they could have provided "vital measurements" of NZL57 and NZL60.

Former Team NZ employee Wayne Smith had carbon-fibre material certificates
containing "significant design information" while at OneWorld. He said he did not
refer to them or show them to anyone.

Former Team NZ designer Ian Mitchell copied a file when leaving the syndicate.
He later produced "as an initial point of reference for discussion by a group of
OneWorld designers and crew" a document representing the general deck layout
of NZL60. He said the information was available in public photos.

OneWorld had Prada's sail design material from the last cup.

America True's boats were bought by OneWorld and their principal designer hired.
Design drawings for America True were used during repairs to those boats.

Full story: www.nzherald.co.nz/sports/

OWC REACTION
OneWorld Challenge chief executive Gary Wright told the (New Zealand) Herald he
thought the one-point penalty imposed by the panel was severe enough, and more
punishing than a monetary fine. "Every point counts. For most teams, fines are
probably easier to pay than penalties. "We'll give it our best shot to be in the top
four [but] we don't have expectations of just automatically being there. "That point
could be the difference." - Helen Tunnah, NZ Herald, full story:

www.nzherald.co.nz/sports/

http://www.sailingsource.com/scuttlebutt/1139.php

--------------------------------------------------------------------------------------------

About OneWorld

In May of 2000, the Seattle Yacht Club and telecommunications investor Craig McCaw
launched the OneWorld Challenge campaign for the America's Cup, to be held in
Auckland New Zealand in 2003. OneWorld assembled a world-class team of
designers, boat builders and sailors from around the globe, many of whom were
already America's Cup winners, Olympic medallists and world champions. The
OneWorld mission is to win the 31st America's Cup in the name of the health of our
planet. The syndicate will use its profile to draw the World's attention to a broader
environmental message, the health of the planet and its oceans. Underwriters of
OneWorld at this point include Craig McCaw, Paul Allen's TechTV, SAIC, and Lincoln
vehicles. More information is available at:  http://www.oneworldchallenge.com

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Subject: [NEXTEL-1] America's Cup, Craig McCaw, Trades Secretes, £1 Million, Lawsuits
From: Marcel <[email-masked]>
To: "[email-masked]" <[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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