Team New Zealand have confirmed they will head to the America's Cup arbitration panel after their latest racecourse proposal was rejected by Luna Rossa.
Last week, Italian syndicate Luna Rossa won an appeal which effectively eliminated two of the five courses planned for the event, just off Devonport and Takapuna, known as racecourses B and C.
After the Auckland harbourmaster restricted challengers' access to the two courses, an America's Cup arbitration panel ruled they could not be used for the subsequent America's Cup defence.
The decision "outraged" Team NZ boss Grant Dalton as the two courses offer spectators the best view of racing from land, and are considered crucial to funding agreements with central and local government.
To try solve the dispute, Team NZ said they would not sail or train on the two courses when the challengers were also unable to do so.
But Luna Rossa has rejected the proposal, saying it was "far from fair and is not acceptable".
Team NZ say they are surprised by their decision and have opted to take the dispute back to the arbitration panel.
"Given the fact that specific courses - B and C - would also be available for the best-of-13 race Prada Cup final regatta which the defender is not part of," says Team NZ.
"That proposal made it clear that the Defender - Team NZ - would not sail in the area defined as course B and C on the race days when the challengers couldn't race there to eliminate any extra sailing time or perceived advantage the defender might have.
"Luna Rossa, without specified reasoning have sadly rejected this proposal saying only that the defenders proposal is 'far from fair and is not acceptable'.
"Therefore Team NZ will now refer the dispute to the arbitration panel requesting a formal mediation of the issue."
Since the feud has gone public, Auckland Mayor Phil Goff urged all parties involved to "sort it out", but Luna Rossa tactician Brad Butterworth disagrees.
"It's not really a stoush with the challengers, it's a stoush between Team NZ and the local authorities," Butterworth told The AM Show.
"The Mayor could do something about it, he runs the city, doesn't he? He can talk to the harbourmaster and the Ports of Auckland.
"It's got nothing to do with me and Grant Dalton. It's a problem he's got with the local authorities about when he can run the races.
"Luna Rossa just wants the rules that they signed on in the beginning honoured. Anyone of the courses they deemed good for the day of racing."
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.
