New U.S. Challenger Enters 38th America’s Cup With American Magic’s Assets in Hand
American Racing Challenger Team USA was confirmed on April 8 as an official challenger for the 38th America’s Cup in Naples, restoring a U.S. entry after American Magic’s withdrawal in October 2025 had raised the prospect of the first American absence in the event’s 175-year history. The new team, backed by Czech billionaire Karel Komárek and British entrepreneur Chris Welch, acquired American Magic’s AC75 yacht Patriot and two AC40 platforms, giving it a competitive starting point that a blank-sheet campaign could not have achieved in the time remaining before racing begins in 2027.
The asset transfer
The acquisition goes beyond a single hull. American Magic Services, based at the American Magic High Performance Center in Pensacola, Florida, will support the new challenger’s race boat modifications and on-water testing. That means the team inherits an operational base, engineering capability, and a facility already built for AC75-level work.
Under the current Cup rules, a new entrant must either acquire an existing AC75 from a previous cycle or build a new boat to an approved hull design purchased from a past competitor. By taking on Patriot and the two AC40 development platforms, American Racing Challenger Team USA avoided the cost and delay of starting from zero, and gained immediate access to foiling hardware for crew training and systems development.
Marzio Perrelli, Chief Executive Officer of the America’s Cup Partnership, said the team “has already acquired the assets of American Magic” and that “this makes Sail Newport’s challenge a real contender,” according to WBUR.
Ken Read and the backers
Ken Read, a two-time Rolex Yachtsman of the Year winner, leads the campaign. “We’re under no illusion about the challenges ahead and we’re fully focused on building a team that can win the Cup,” Read said.
Komárek, founder and chairman of KKCG, said the group “would only move forward with the right partners in place.” Welch described the entry as “a rare chance to help shape the opening chapter of a new era in America’s Cup history.”
The team represents Sail Newport and has partnered with US Sailing, with both organizations committing to youth development and expanding pathways for female sailors.
Why American Magic left
American Magic confirmed its withdrawal in late October 2025, saying the event’s Protocol and Partnership Agreement did not provide “the necessary framework for a financially sustainable and highly competitive campaign.” Team principal Doug DeVos said the structure was not suitable after “extensive engagement with the Defender, Challenger of Record, and fellow teams.”
American Magic had represented the New York Yacht Club in the previous two Cup cycles. The team said it would shift toward athlete development, technology research, and international competition from its Pensacola base.
American Racing Challenger Team USA enters under the same broad event conditions that American Magic rejected, but with different financing and an acquired platform that reduces the upfront capital required to field a competitive boat.
What comes next
The 38th America’s Cup Match is scheduled for July 10–18, 2027 in Naples. The new team’s confirmation arrived after the initial entry deadline had passed in October 2025, within a late-entry window that extended through March 31, 2026.
The campaign is not a rebranded continuation of American Magic. It is a new challenger built from the former team’s racing ecosystem, under separate ownership and leadership. Whether design staff, sail designers, or crew members from American Magic will join remains unreported. The open questions now centre on how quickly Read can assemble a full sailing and engineering team, whether Patriot will be modified or sailed largely as acquired, and how much development time the compressed schedule allows before racing begins off the Italian coast.