Oracle will begin America's Cup on -2
Team NZ will begin the best-of-17 America's Cup series against Team Oracle with a two point advantage.
That means Oracle needs to win 11 races to defend the America's Cup, while Team NZ will have to win just nine of the scheduled races to take the trophy (the series will extend to up to 17 races).
An international jury ruled this morning that Oracle made illegal modifications to its catamarans.
The jury found four sailors guilty of gross misconduct after adding weights and altering measurements to the smaller AC45s used to win the last two world series titles they subsequently forfeited.
As well as being docked a crucial two points, Team Oracle has been fined $US250,000 and one sailor and two shore crew have been banned from the competition.
The America's Cup begins in San Francisco on September 7.