US SailGP Team takes American Magic to court over stars-and-stripes spat

The weekend of racing in Rio is not yet upon us and already we have some SailGP drama, although this time it's unfolding in a Delaware courtroom rather than on the water.

The US SailGP Team has filed suit against AM Sailing Purchaser LLC, the entity through which Doug DeVos acquired the Danish Rockwool Racing operation late last year, alleging that the American Magic branding now adorning the Danish boat is causing marketplace confusion and treading all over their exclusive territorial rights.

The origins of the dispute go back to a deal that didn't happen. American Magic co-founder DeVos tried to buy the US team but couldn't get it done. So instead he snapped up the Danes for an estimated US$60m, and American Magic's red-white-and-blue livery has since appeared on everything from race shirts to social media backgrounds. The US team, which signed a renewal deal with SailGP in May last year granting exclusive rights to represent the United States, is not impressed.

At a hearing before Chancellor Kathaleen McCormick on Tuesday, lawyers for the plaintiffs argued the branding is causing real-world harm, pointing to social media confusion and sponsor inquiries as evidence that fans genuinely don't know whether there's now a second American team on the circuit.

DeVos's legal team pushed back hard, contending that SailGP itself – not the US squad – controls branding rules and had already signed off on the American Magic name. They also noted that the plaintiffs previously sought emergency relief at the Court of Arbitration for Sport and were knocked back there too.

No ruling has been handed down yet – Chancellor McCormick took the matter under advisement – and the arbitration process grinds on in parallel. For now, at least, no injunction means no forced rebrand. When the boats hit the water in Rio this weekend, expect to see the Danes flying the same American Magic colours that sparked this whole mess.