The US-based America’s Cup team, American Magic has announced it will not compete in the 38th edition of the America’s Cup, stating that the event’s current Protocol and new Partnership Agreement ‘do not provide the necessary framework for a financially sustainable and highly competitive campaign’.

The team, which has represented the New York Yacht Club in the previous two Cup cycles, made the decision following, what they call ‘an extensive review of the governing documents’.

“After extensive engagement with the Defender [Emirates Team New Zealand], Challenger of Record [Athena Racing], and fellow teams, we’ve concluded that the present structure does not provide the framework for American Magic to operate a highly competitive and financially sustainable campaign for the 38th America’s Cup,” said Team Principal Doug DeVos.

“For a team committed to long-term excellence, alignment around financial viability and competitive performance is essential. At this time, we don’t believe those conditions are in place for American Magic to challenge.”

The decision comes amid significant structural changes to the America’s Cup. The new America’s Cup Partnership (ACP), established in the latest Protocol, fundamentally changes how the event is run.

The ACP aims to spread the logistical and financial burden of hosting the event among the Challengers and Defender, creating a more commercial structure intended to secure long-term sponsorship and hosting deals.

However, the American Magic’s withdrawal reflects growing concerns that this “democratisation” of the Cup, which shifts away from the traditional winner-takes-all format, may dilute the event’s unique appeal and prestige.

Critics of the ACP argue that commercialising the competition risks turning it into a world championship circuit, potentially making it harder for teams like American Magic to raise the necessary high-level finance by reducing the unique cachet of challenging for the Auld Mug.

Despite the withdrawal, American Magic confirmed it remains committed to its founding purpose of building a high-performance American sailing platform. The team’s focus will now shift to athlete and technology development, international competition, and supporting U.S. Olympic sailing from its base in Pensacola, Florida.

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