SYDNEY — The next America’s Cup in 2017 has been thrown into turmoil with the official Challengers of Record withdrawing from the regatta.



Organizers said Saturday that Australia’s Hamilton Island Yacht Club has withdrawn its Team Australia challenge for the 35th America’s Cup event, which is to be sailed in 2017 in either San Diego or Bermuda.



“The America’s Cup organizers have received notification from the principals of Hamilton Island Yacht Club of their intention to withdraw Team Australia from the 35th America’s Cup,” America’s Cup Event Authority chief executive Russell Coutts said in a statement.



“We are very disappointed to be receiving this news. We were excited to have Australia as a challenger and we were also looking forward to the prospect of holding America’s Cup World Series events in Australia.”



No one was immediately available at the Hamilton Yacht Club to clarify its decision.



Hamilton Island were named as Challengers of Record, who represent all of the challenging teams in negotiations with the holders of sport’s oldest sporting trophy, after software billionaire Larry Ellison’s Oracle Team USA retained the Cup last year.



Oracle won the final winner-takes-all race in San Francisco beating New Zealand 9-8 after the Dean Barker-skippered New Zealanders had held an 8-1 lead before the American team roared back.



New Zealand’s challenge, which was partially government funded, have said they will challenge again, though a lack of clarity on the venue had been putting potential sponsors off committing to fund the venture.



Local media have reported that sponsors were also concerned at the move away from San Francisco.



Oracle and Hamilton Island released the protocol for the next event last month.



The event will be sailed with a similar but smaller version of the 72-foot (21.94-metre), wing-sail catamarans used in 2013.



The new 62-foot boats, called AC62s, will be crewed by eight people, three fewer than last year.



Nationality rules have also been introduced with at least two of the eight crew members having to be nationals of the country of the yacht club represented. The venue will be announced in October.



Britain’s Olympic champion Ben Ainslie, who was the tactician on Oracle and widely credited with turning their fortunes around in the last regatta, has said he will head a British challenge.



America’s Cup organizers said Saturday the British were still continuing with their challenge.



“While the withdrawal of the Challenger of Record is regrettable, it is also not unusual and we will continue our own preparations for the 35th Americas Cup and look forward to an exciting future,” a statement from Ben Ainslie Racing read. — Reuters