Royal NZ Yacht Squadron members have withdrawn their bid for a special meeting to keep the next America's Cup defence in Auckland.
But in the process, Queen's Counsel Jim Farmer has accused Emirates Team NZ boss Grant Dalton of making "threats" against the members, as they try to block attempts to take the 2024 'Auld Mug' regatta offshore.
Since their successful defence of the trophy at home this year, Team NZ have searched for a more lucrative overseas venue, hoping to generate enough revenue to pay for their campaign.
The trophyholders have rejected a $99 million Government offer to keep the regatta in Auckland, but as trustee of the America's Cup, the RNZYS was petitioned by members to reconsider where the next defence is staged.
Last month, Farmer filed paperwork under club rules, which require 25 signatures of current members to force a special meeting, set down for December 9. COVID-19 restrictions would have see the gathering split into two rooms, with others attending via video conference.
But he has now withdrawn that request, claiming Dalton had approached those club members, threatening to put Team NZ into liquidation and leaving RNZYS without a team to defend the Cup.
"Given that position, I felt it incumbent on me, as the representative of those members who had signed the requisition in good faith, to go back to them and advise them that, in my view, there was a real prospect that the SGM would be undermined by the threats made," says Farmer.
"That communication has taken place and I have their authority to withdraw the requisition, which I have done by letter this morning to the commodore."
Farmer has told RNZYS commodore Aaron Young that Dalton's intervention meant the meeting was "unlikely to be a constructive, transparent and rational debate on the critical AC venue issue".
"The objection to the defence of the Cup taking place offshore by all requisitioners remains unaltered and the claim made by Grant Dalton that the defence of the Cup in Auckland is not viable remains disputed," Farmer has told Young.
"My position remains also that the way forward, in the interests of everyone who has a genuine desire for the defence to take place in Auckland, is for direct discussions to take place to make this happen, if necessary, with the assistance of a mediator or facilitator, between representatives of the squadron, Team NZ and those offering funding."
Team NZ are due to announce a venue for their next defence in March 2022, with Cork in Ireland, Jeddah in Saudi Arabia and Valencia in Spain looming as leading candidates.
Last month, Young warned the petitioners their action may have dire consequences for any future Cup defence.
"We have said all along that it is the RNZYS’s preference for AC37 to be held in New Zealand, however it needs to be viable to allow this to happen," he said. "What we and the team have allowed ourselves is time to do everything possible for this to happen.
"It is also very important to us that ETNZ remains viable, that we keep the team together, and we honour our commitments and undertakings with our challenger of record, RYS and INEOS Britannia.
"Currently, we do not have a viable New Zealand venue proposition and, as a result, ETNZ are in discussions with other potential locations. It would be an unprecedented achievement to win the America’s Cup three times in a row and taking the defence overseas - while not our preferred choice - may well offer the best chance for us to do so."
