The Ministry of Business Innovation and Employment has settled its legal dispute with Emirates Team New Zealand over the use of public money for the hosting of the America’s Cup.

MBIE announced that it had met ETNZ and America’s Cup Events (ACE) today in mediation to resolve the issues.

MBIE said the dispute was over whether the creation of a Class Rule for the America’s Cup was an event cost under the host venue agreement.

“We regret the manner in which this issue has played out in the public arena and the detrimental reputational impact of the process on ETNZ and ACE, its directors and the teams.

“The parties have all agreed that there was reasonable basis for the differing views held to date,” a joint statement from the parties said.

“The contractual dispute arose during the course of an independent audit initiated by MBIE as a result of allegations of financial impropriety and misappropriation of funds, which were subsequently investigated and found to be wrong.

“In the course of the mediation regarding the dispute, ETNZ and ACE have provided MBIE with information and independent advice that supports their view.

“MBIE, ETNZ and ACE have now agreed that there was a reasonable and legitimate basis for ETNZ and ACE to consider that the Class Rule costs were within the scope of Event Costs in the Host Venue Agreement.”

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