OneWorld America's Cup Challenge heading for the rocks

The downturn in US technology stocks has hit the OneWorld challenge's chances of even making it to the starting line.

Following announcements late last week that Craig McCaw was looking for commercial partners in his OneWorld America's Cup campaign, it has now become clear that the project is close to foundering. McCaw who made his money in telecommunications has been hard hit by the downturn in the US technology stock sector and appears to have run out of cash to fund the operation.

Though no official news has been released, sources close to the challenge suggest that McCaw is looking for a sum close to US$20million in the very near future if the project is to continue. While there are suspicions that the crisis may have been manufactured to prompt action from potential sponsors, it does now appear that there is a very strong chance that the project will fold. An official announcement is expected on Monday.

Cancellation of the OneWorld Challenge would come as a big blow to those involved. Many have signed on for stratospheric salaries. All are now barred by America's Cup nationality rules from signing for 'foreign' syndicates and short of going back to challenges in their native countries will have to resign themselves to supporting roles - if any - in the 2003 America's Cup .

For Britain's Ben Ainslie this would be the second major project that has run onto the rocks in as many months, following the cancellation of the Admiral's Cup. Ainslie is now back in Britain and remained tight lipped when questioned. It does however appear that he is uncertain if he will be returning to the USA.

Other challengers will doubtless be mightily relieved if OneWorld collapses. McCaw has assembled a cast list that looked like the Who's Who of yachting and was reputed to be prepared to spend as much as US$80million to try and bring The Cup back to Seattle. The design team of Laurie Davidson, Bruce Nelson and Phil Kaiko look awesome, having been involved in four of the last five successful America's Cup teams.

America's Cup veteran and former world number one match racer, Peter Gilmour, leads the sailing team which includes ten Olympic medallists, three Whitbread race winners, over 60 World Championship title holders and 14 America's Cup winners.

Perhaps most significantly of all, the core of the OneWorld Sailing group is seven of the successful Team New Zealand squad from AC2000. Should the OneWorld challenge fold it will be interesting indeed to see if any of this group are welcome back in the New Zealand camp.