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The America's Cup, sailing's 157-year-old premier event, risks descending into farce with a bitter dispute showing no signs of reaching an amicable conclusion and the health of the sport at risk.

The two teams in the sport -- BMW Oracle and defending champions Alinghi -- have been trading legal challenges and angry letters for more than a year and while the latter are pressing on with plans for the 33rd edition of the event, the former are awaiting the outcome of a New York court appeal.

The next race was originally due to take place in 2009 but was put on hold after BMW Oracle challenged the legality of the Spanish team recognised by Alinghi as the official Challenger of Record.

The Challenger of Record is traditionally involved along with the holders in setting up the rules for the next edition of the race.

Last November, a New York judge ruled in BMW Oracle's favour, and a subsequent ruling set up a best-of-three, head-to-head series between the two rivals rather than the traditional multi-boat competition.

Alinghi successfully appealed, saying it preferred a later race date, a separate Challenger of Record and a larger field of challengers.

BMW Oracle, who object to a number of elements of the rules and structure of the planned event, filed their own appeal and the case is expected to be heard on Feb. 10 with a ruling due by the end of March.

Both sides say they are willing to compromise -- BMW Oracle say they are ready to join in the organising process if no conditions are imposed on them, Alinghi say their rivals are welcome -- as long as they drop their legal claims.

"They understand the situation and have said publicly that they won't enter under the current rules. They have to do what they have to do and we have to do what we have to do. They don't have to enter if they don't want to and I can understand that," Alinghi's New Zealand-born skipper Brad Butterworth recently told Seahorse Magazine.

Larry Ellison, the American CEO of Oracle and owner of the team, puts the blame on Ernesto Bertarelli, the Swiss owner of Alinghi.

"Terrible things have happened. Because of our lawsuit a lot of teams are unable to sell and come up with sponsors because there is no date for the next America's Cup and there is all this uncertainty. I put all of this on Ernesto's doorstep." He told the New York Times.

Russell Coutts, the BMW Oracle skipper -- another New Zealander -- who has triumphed three times in the Cup, says he is confident that his team will win their appeal.

"We are very optimistic about the appeal. Alinghi can move along with organising an event but it is not going to be the America's Cup, it is not in keeping with the 157-year history of the regatta," he told Reuters.

Coutts hopes the February appeal process will mark the end of the battle -- although the conduct of the parties suggests there will still be plenty of problems to overcome if a compromise is to be found.

It is hard to believe that a sport which includes many high-flyers from the world of business, such as Ellison and Bertarelli, cannot find the ways and means to put on a boat race, especially at a time of economic uncertainty where sponsors are being careful with their budgets.

The sport will surely now have to consider whether, in the modern era, it is any longer viable to try to organise a major international event on the basis of old gentlemen's agreements. As the current impasse shows, there is always the danger that the gentlemen do not agree.

There is a reason why most sports are governed by an international body with disputes settled within the sport and not in court -- it helps to avoid precisely the kind of damaging row that sailing's glamour event is now forced to deal with.

Reuters