WELLINGTON (Reuters) – Two syndicates challenging for the America’s Cup have been granted exemptions to enter New Zealand and begin their preparations for the event that will be held in Auckland early next year.

Just over 400 people, almost 200 staff working for the American Magic and Britain’s INEOS Team UK syndicates and 214 of their family members would receive the exemptions, New Zealand’s Economic Development Minister Phil Twyford said on Friday.

“The America’s Cup would not be able to go ahead unless these international syndicate teams are allowed entry into New Zealand,” Twyford said in a statement.

“Approving these border exemptions allow the teams to start setting up their bases, and carry on key design and boat testing that can be progressed from our shores in New Zealand.”