Bermuda Beats San Diego to Host 2017 America’s Cup

America's Cup commercial commissioner Harvey Schiller made the announcement Tuesday in New York.

The decision was made two weeks ago by billionaire Larry Ellison of Oracle Corp. after consulting with Russell Coutts, the CEO of Oracle Team USA and director of the America's Cup Event Authority.

This will be the first time a U.S. defender holds the America's Cup outside the United States. It also will be the first time in the regatta's 163-year history that a defender sails the races in foreign waters by choice rather than necessity.

Bermuda is a British territory some 640 miles off North Carolina.