It took place in Newport and consisted of a series of races between the defender Rainbow, entered by a syndicate of New York Yacht Club members headed by Harold S. Vanderbilt, and Endeavour, owned by Sir Thomas Sopwith.

[1] Endeavour was towed across the Atlantic by Sopwith's motor yacht Vita, arriving at Newport in late August.

[3] This tour led to a protest by Sopwith that Rainbow had not followed the spirit of a new rule introduced to the competition that year that yachts should be fitted out with crew accommodations.

[3] The Cup Committee responded to the protest by allowing Sopwith to strip out large parts of Endeavour's interior prior to racing.

Vanderbilt, skipper of Rainbow considered the race — and the Cup — lost, and handed the helm over to a member of his afterguard, Sherman Hoyt.

[1] Hoyt correctly anticipated how Sopwith would maneuver during this leg, and was able to lure his opponent into losing momentum and the race.

[1] Realizing what was happening, Sopwith maneuvered hard to try to force Rainbow to give way under the Racing Rules of Sailing.