Oracle Team USA face hearing over ‘illegal changes’ to yachts

An international jury has begun hearings into what could be one of the biggest scandals in the 162-year history of the America's Cup.

The panel, meeting in San Francisco, is investigating defending champions Oracle Team USA for illegally modifying two of three prototype boats they sailed in four warm-up regattas last year and earlier this year.

The jury held a hearing on Monday for Oracle Team USA employees being investigated under rule 69 of the Racing Rules of Sailing, which deals with gross misconduct. That hearing was expected to continue yesterday.

The syndicate itself faces another hearing tomorrow dealing with protocol article 60, which is aimed at protecting the reputation of the America's Cup.

The jury could decide to punish individual employees or the syndicate itself. If the jury punishes the team, the sanction could be unprecedented, ranging from forfeiture of races in the best-of-17 America's Cup match against Emirates Team New Zealand beginning on September 7 in San Francisco Bay, or disqualification.

While it's unlikely the jury would give powerhouse Oracle the heave-ho from the regatta, forfeiting any races against the strong Kiwis would be a huge setback.

The jury could also levy a fine, although it's unknown how big of a financial penalty the jury would need to impose to punish a syndicate with a budget estimated at US$100 million.