"Following a careful evaluation of the serious implications of this unprecedented initiative, Team Luna Rossa confirms that it will withdraw from the 35th America's Cup," a statement from the team said.
On Tuesday night, America's Cup organizers said a majority of teams favored the move from 62-foot (19-metre) catamarans to 48-foot (14.65-metre) boats.
While the AC62 Class Rule could be changed only with unanimous consent, organizers led by two-time defending champion Oracle Team USA said last week that they had agreed with the other squads to amend the protocol to change the class rule with a majority vote.
"Team Luna Rossa indeed considers illegitimate the procedure adopted and founded on an evident abuse of process by surreptitious use of procedures to modify the protocol in order to overturn the class rule, which instead requires the unanimity of the teams entered," said Luna Rossa, which is backed by the fashion house Prada.
"This is an attempt to introduce boats that are substantially monotypes and in total contrast with the ultra-centennial tradition of the America's Cup, not to mention a two-month extension period to introduce further modifications to the rules, decided by the majority."
The rule change was passed despite Luna Rossa saying last week it "will be obliged to withdraw" if the race boat was downsized. Team New Zealand supported the Italians.
While the downsizing was considered a cost-cutting move, Luna Rossa was believed to be at an advanced stage in its development of a larger boat.
"This radical change also implies a waste of important resources already invested based on the rules that were sanctioned in June last year," Luna Rossa said. "Luna Rossa frequently advanced proposals aimed at containing costs that however would not have changed the nature of the boats, but these proposals have systematically been rejected by the defender."
It's not the first time that Luna Rossa team principal Patrizio Bertelli, who is married to Miuccia Prada, has followed through on a threat.
In July 2013, Luna Rossa sat out the opening race of the challenger trials on San Francisco Bay to protest rules changes, leaving organizers with the embarrassing scenario of Team New Zealand sailing around the course alone.
"Sometimes it is necessary to make decisions that are painful but must be clear cut," Bertelli said. "As only these can make everybody aware of the drifts of the system and therefore set the basis for the future: respect of legality and sportsmanship."
Luna Rossa said it would honor all of its contractual obligations to its team members
"I want to thank the whole team for its hard work during this past year," Bertelli said. "Regretfully this effort has been frustrated by this maneuver that is unprecedented in the history of the America's Cup.
Luna Rossa's withdrawal could also put in jeopardy the opening event of this year's America's Cup World Series, scheduled for Cagliari, Sardinia, in June.
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