Team NZ chief executive Grant Dalton is "outraged" by a decision that rules out the use of inner-harbour 'stadium' courses for next year's America's Cup, limiting the number of spectators.
Challenger of Record Luna Rossa has led the campaign through the America's Cup arbitration panel, effectively eliminating two of the five courses planned for the event, just off Devonport and Takapuna.
The decision follows a Ports of Auckland ruling that the two courses should not be used during the Prada Cup challenger rounds, although they could host the Christmas Cup build-up regatta, challenger finals and America's Cup races.
Luna Rossa claim limited access to those courses would disadvantage the challengers and the arbitration panel agrees, although it has left the door ajar for all parties to uanimously negotiate an alternative solution.
Team NZ say the decision has "considerable and negative repercussions to the accessibility of the event for the public of Auckland and New Zealand, the safety of the event and the reliability of the racing.
"All of which are elements that have been fundamental to Team NZ, since we won the America’s Cup in 2017.
"The images with Auckland City as a backdrop during racing have always been a critical part of showcasing Auckland and New Zealand to the world in an event with a significant global audience, and another reason for the original racecourse designs."
Dalton is furious with the outcome.
"Quite frankly, we are outraged by this decision," he says. "It has gone against everything we have been trying to achieve over the last three years, with no consideration to the effect this has on the public of New Zealand and the city of Auckland."
Team NZ are now considering what options are available to remedy this decision.
The incident is the latest in a frosty relationship between Team NZ and Luna Rossa.
In an interview with Italian newspaper La Stampa earlier this week, Luna Rossa skipper Max Sirena hinted the relationship was tense between Luna Rossa and Team NZ.
"In the America's Cup, there are no friends, like in sport," says Sirena. "I would be surprised otherwise.
"It is in the DNA of this competition - we all want to win.
"If I went out for a beer with Grant Dalton every night, it would sound out of place, it would sound strange."
Luna Rossa need to overcome American Magic and INEOS Team UK in the Prada Cup challenger regatta to qualify for the America's Cup, which begins in March.