"But the event is housed in the same building. Maybe in hindsight, that's not the right way to do it.
"However, in a million years, you couldn't expect this was happening. Everybody else is straight as a die and here to hold on to the America's Cup.
"So, if there's a failing, it would simply be that probably we shouldn't have housed the two together," he told Hosking.
"But again, you just can't foresee this sort of thing. And you don't want to believe it until you have proof that it's true."
The situation is now being handled by the team's lawyers - whom they had spent days with, he said.
He did, however, say that Team NZ did not have any intention to take the matter any further at this point. But he acknowledged that was not necessarily their call.
"The bottom line is it's solved, we've done it, we've sorted it. We've had nothing but help from the Government. They've been brilliant through this, through the process.
"We've just got to finish that process off and get some new people and get on with it."