An jnternational jury at the America's Cup competition has rejected last-minute rule changes and found in favour of Team New Zealand and Luna Rossa of Italy.
The jury on Thursday said regatta director Iain Murray did not have the authority to implement rule changes opposed by the two teams.
The changes in boat design were made in an attempt to improve safety after an Artemis crew member was killed when the Swedish catamaran capsized during training on San Francisco Bay in May.
Organisers say that racing can proceed as scheduled if the teams adhere to the AC72 class rule as well as 37 safety rules established following the death of the crew member.
Event chief executive Stephen Barclay said if the teams take this step, it will ensure the safety plan remains intact and the US Coast Guard permit is unaffected.