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OneWorld docked one point

OneWorld: Breached cup rules by possessing Team NZ designs
OneWorld: Breached cup rules by possessing Team NZ designs

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AUCKLAND, New Zealand (CNN) -- Seattle-based syndicate OneWorld will be docked one point during the Louis Vuitton Cup semifinals for breaching the America's Cup rules, an arbitration panel has ruled.

OneWorld has also been ordered to pay costs to the panel of $65,000. It was accused by Italian team Prada and New York-based Team Dennis Conner of using designs belonging to America's Cup holder Team New Zealand.

After a special weekend meeting in Auckland, the five-man arbitration panel on Monday decided to dock OneWorld one point for the semifinal and one point in the final -- if it gets there.

The first day of semifinals racing was postponed on Monday due to strong wind on the Hauraki Gulf. OneWorld will race Prada, while top-ranked team Swiss Alinghi will meet another American syndicate, Oracle BMW Racing.

In its decision, the panel said: "OneWorld Challenge has been in breach of the Protocol in that a designer employed by OneWorld Challenge had in his possession a computer file, a ZIP disk and a computer that contained design information that was the property of Team New Zealand, facts that were not disclosed in the previous application."

The panel made its ruling after two days of evidence, including cross-examination of former OneWorld Challenge operations manager Sean Reeves, who stood by his allegations that the syndicate stole design information. (Full story)

OneWorld said the panel's decision was "extremely harsh," but would continue to race. (Full story)

Commodore of the New York Yacht Club Charles Dana said that Team Dennis Conner took "no pleasure in the verdict" claiming that the new information that his team and Prada had submitted to the panel went far beyond the earlier admissions of guilt made by OneWorld.

Monday was the 15th day out of 42 that racing has been lost because of either too much wind or too little wind. The teams will try again on Tuesday.

The winner of the Louis Vuitton Cup will race against Team New Zealand for the America's Cup next year.



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