Alinghi consider Australia as possible venue 

Source: Carlo Borlenghi/AlinghiAlinghi training in Valencia for the Louis Vuitton Pacific Series

Australia has emerged as a possible compromise venue for next year's America's Cup race after a New York judge on Saturday ordered two rivals for yachting's most prestigious prize to hold private negotiations.

Defending champion Alinghi of Switzerland and California challenger BMW Oracle have been locked in a two-year legal dispute over the terms of the 33rd edition of the race.

The most recent disagreement has concerned where the race, now scheduled for February 2010, will be held.

"We're waiting to see if there's a consensual resolution that ends all this litigation," said Barry Ostrager, a lawyer for Alinghi.

Alinghi, which as defending champion is charged with choosing a venue, had selected Ras al-Khaimah in the United Arab Emirates. But a New York State Supreme Court justice ruled it did not qualify because cup rules hold that wintertime races must be held in the southern hemisphere.

Alinghi, which sails under the colors of Societe Nautique de Geneve and is backed by Swiss biotechnology billionaire Ernesto Bertarelli, has appealed the ruling but has since proposed Australia as a possible venue.

BMW Oracle, which sails under the colors of the Golden Gate Yacht Club and is backed by Oracle Corp CEO Larry Ellison, has said the race should be held in Valencia, Spain. Though Spain, like the UAE, is in the northern hemisphere, Valencia has been deemed acceptable because it was the site of the previous race in 2007.

On Saturday, both sides said they would be open to finding a compromise.

"We think we are entitled to a southern hemisphere location," said Ostrager, suggesting that the team would not consent to a race in Valencia.

He would not comment on whether Alinghi would drop its appeal regarding Ras al-Khaimah.

BMW Oracle lawyer David Boies, a lawyer who represented Vice President Al Gore in the 2000 election vote recount leading to George W. Bush's presidency, said the team would be prepared to race in Valencia or Australia.

But he added BMW Oracle may seek a delay.

"From our perspective, we think if it's going to be held in Australia, we'll need some additional time," said Boies, saying the team would need some additional "weeks" to prepare.