But Mr Blackman, the syndicate's business manager, remains confident the boat is in good shape and the near-disaster will not have a lasting effect on the America's Cup challenger in San Francisco.
Team New Zealand was leading race eight yesterday when a tack went wrong. The wingsail stayed put because of a late hydraulic change, and the boat started to tip over.
Catastrophe was avoided when the boat crashed back down to the water, but Team New Zealand lost valuable time, and Oracle sailed away with the race to wipe its second penalty point.
The second race was abandoned - with the New Zealand boat in front - due to high winds. The regatta resumes today with the challenger leading 6-0, still needing three more wins to reclaim the Auld Mug.
''There was obviously a tense period there,'' Mr Blackman told the Otago Daily Times from San Francisco yesterday.
''But the team recovered quickly and settled down really well,'' the manager said.
Mr Blackman, an Otago Boys' High School old boy, denied speculation Team New Zealand's regatta would have been finished had the boat capsized and, presumably, sustained severe damage.
''I think the boat would have been fine. We would have had quite a lot of damage to the wing, but we could have pulled out our second wing.
''The boat is 100% fine. I know it looked horrible. I was on the water and quite close.
"I thought it had gone. It was on its way over. My heart just stopped.
''But there is nothing wrong with the boat, and never has been.''
The New Zealanders would have played their ''postponement card'' for the second race had they been worried about the boat, he said.
No fingers had been pointed for the incident.
''Tacking these boats is a really complicated process.''
''There's a lot of stuff that happens to get the boat through the turn, particularly on the wing. That's all hydraulic.
''Unless you get every little piece of the manoeuvre correct, you can have a glitch, which slows the wing down.
''So, when you're right at the top of the wind range, and the move isn't perfect, it'll delay the reshaping of the wing and create what we saw today.
''It was just a moment of pressure. No-one's fault. You've just got to move on.''
It was frustrating to have the second race abandoned but both crews knew the wind rules, Mr Blackman said.
Team New Zealand was ''rapt'' with how the boat was performing, and doubted the drama gave Oracle any psychological advantage.
''They'll take a lot of heart out of that first race. They were sailing well and they got a point.
"That could be interpreted as a momentum shift but that's not how we see it.''
Wind was likely to be strong today but Mr Blackman hoped two races would be possible.
''It could be touch and go but I think we've got a better chance of getting two races away.''
