altDECEMBER 18 - SIR KEITH MILLS (pictured), the vice-chairman of London 2012, has been forced to scale back his planning for the America's Cup following a legal dispute.

 

A dispute between Swiss champions Alinghi and US syndicate Oracle means the date for the 33rd America's Cup, originally planned for 2009 in the Spanish Mediterranean port of Valencia, is unknown.

 

Experts now believe the race is most likely to involve a catamaran duel between Alinghi and Oracle in 2008 or 2009, with the next traditional cup with challengers in 2011.

 

The uncertainty has forced Spain's challenger Desafio to reduce its personnel by 20 per cent to around 80 people based in Valencia and suspend the activities of the rest of team, a spokesman said today.

 

Spanish media said Desafio, which is planning for 2009 with a budget of around 60 million Euros (£43.32 million), must sharply reduce its expenses, while remaining at its base in Valencia, ahead of 2011.

 

Sir Keith's Team Origin also announced it is "lowering its current level of activity and re-focusing on planning for a 2011 event."

 

"I remain totally committed to the America's Cup..," Sir Keith said in a statement.

 

"But I am extremely frustrated and disappointed about the current state of affairs.

 

"What we need is clarity and I urge (Alinghi) and (Oracle) to reach an agreement that provides the prospective challengers like Team Origin with the certainty they need to plan future campaigns."

 

Among the other challengers, United Team Germany and Team New Zealand have already said they would be forced to reexamine the situation due to the uncertainties surrounding the event.

 

Team New Zealand has also said it will demand a large financial compensation from Alinghi if the edition of yachting showpiece event does not take place in two years.

 

The America's Cup hit the rocks in the aftermath of the hugely sucessful staging of the 32nd edition won by defender Alinghi against Team New Zealand in Valencia in July.

 

The crisis was triggered by Alinghi's naming of Desafio as the official 'Challenger of Record' and a controversial reworking of some of the rules.

 

Oracle claimed Alinghi was giving itself an unfair advantage and took their case to court, with a New York judge ruling in their favour last month.

 

The court ruled that Oracle should be the Challenger of Record, meaning it can help negotiate the rules for the next America's Cup.

 

The court is set to meet to confirm the decision on January 14, and may also rule on the date of the possible catamaran duel between Oracle and Alinghi.