A new protocol, signed by Team New Zealand (the Defender, representing the Royal New Zealand Yacht Squadron) and Athena Racing (the Challenger of Record, representing the Royal Yacht Squadron Ltd), outlines several major changes and a new partnership model for the event, which will be held in Naples, Italy, in July 2027.
Key Elements of the 38th America’s Cup Protocol
•Equal Team Governance: The America’s Cup Partnership (ACP) creates a governance structure in which all teams have equal authority, moving away from the previous model dominated by the Defender. The ACP board will make major decisions collectively, with various voting thresholds depending on the type of change.
•Biennial Schedule: The Cup transitions to a two-year cycle, aiming for predictable scheduling and increased commercial and audience engagement.
•Crew Rules: Teams will sail AC75s with a five-member crew, which must include at least one woman. At least two crew members plus the female sailor must be nationals of the team’s country.
•Battery Power: Manual cycling (“cyclors”) will be replaced by a regulated battery power system that mimics previous crew output.
•Cost Cap: Team budgets are capped at €75million for this edition, targeting financial sustainability. The protocol explicitly requires all teams to submit full financial accounts—audited if necessary—after the Cup Match. If a team exceeds the spending cap, they must pay 100% of the excess to the America’s Cup Partnership (ACP), the new governing entity formed by the participating teams. This mechanism is intended to enforce financial discipline and ensure a level playing field
•Female and Youth Representation: A quota system ensures female sailors on each team, along with mandates and expanded opportunities for women’s and youth events.
•Venue Selection: The Defender will not have exclusive control of future venue selection, opening the process to commercial and collective evaluation.
•No Non-Compete Clause: The previous draft’s prohibition on sailors switching teams has been removed; high-profile sailors like Peter Burling are now free to helm with any team.
•Competition Format: The Louis Vuitton Cup Challenger Series will feature both fleet and match racing, with preliminary events for women and youth sailors in AC40s ahead of the main AC75 races.
Entries for the 38th America’s Cup officially open August 19. The protocol marks a historic shift towards inclusivity, shared governance, commercial stability, and technical innovation for the oldest sporting trophy in the world.
AMERICAN MAGIC
American Magic has not yet formally agreed to participate in the 38th America’s Cup. In public statements made as recently as May 29, the team expressed strong concerns about governance, transparency, and the process by which the Protocol and host venue were established. American Magic explicitly stated that they “will not commit to participation in the 38th America’s Cup Challenger Selection Series” until a fair and transparent framework is agreed upon.
However, the new protocol appears to answer many of its concerns.
