NEW YORK (Reuters) - The terms of the next America's Cup were again in the hands of a U.S. court on Thursday after lawyers for holders Alinghi and challenger BMW Oracle sparred over how, when and where the prestigious race should be held.

Lawyers for the two teams argued before a five-judge appeals panel at the New York State Supreme Court. A decision is expected within weeks.

At issue are a series of rulings by Judge Herman Cahn declaring BMW Oracle the challenger of record and saying the America's Cup should be held in March 2009 in Valencia, Spain, or another location chosen by Alinghi.

Alinghi, based in Switzerland, appealed the rulings because it preferred a later race date, a separate challenger of record and restoring America's Cup tradition by allowing a larger of field of other challengers. BMW Oracle also filed an appeal, saying October 2008 was the appropriate date.

"All issues at stake could be reversed by this court," Alinghi's lead attorney Lucien Masmejan told Reuters outside the courthouse. He said the proposed duel between Alinghi and BMW Oracle would unfairly exclude 10 other teams.

"We can play either game," he said. "We will face them on the water and we will win."

But Tom Ehman, a spokesman for BMW Oracle, said Alinghi was throwing all of its grievances "up on the wall to see if one of them sticks."

"They are trying to delay so that they gain even more advantage over us," he said, adding he was confident the appeals court would uphold Cahn's rulings.

In November, Cahn ruled the Spanish club favoured by Alinghi was not a legitimate challenger in the next edition of yachting's biggest prize.

A May ruling set up a best-of-three, head-to-head series for the America's Cup rather than the usual multiboat competition to determine a challenger.

As challenger, BMW Oracle can name the type of boat to be used for the race and they have said they will opt for a large-scale multihull vessel.

(Editing by Daniel Trotta)