They go through gate two with an advantage of 540.
Jimmy Spithill did a great job to draw the penalty. The penalty means Team NZ have to slow down (not hard in thiscase) for a certain amount of time
They're around the bottom mark at 41 knots and well in control of this race.
Team NZ round the bottom mark 29 seconds back.
Onto the upwind leg now - Team NZ will need something special to pull back Oracle's lead.
The lead on the water is down to 300m as both boats tack towards Alcatraz.
Both boats are heading to the cone of Alcatraz to get tidal relief but TeamNZ will need a little more than that to get back into this race
Oracle up on their foils and their lead up to 350m again.
Oracle sailing at 27 knots. Team NZ at a similar speed 350m back.
Oracle tack back towards the city side of the course.
The lead drops to 250m as Team NZ have held their line.
Team NZ staying on port while Oracle have gone right to the city side of the course.
If we have a second race today, Team NZ will have port entry. There's a concern the wind might increase as the day progresses
Oracle's lead up tp 350m.
Oracle reach the city boundary and tack again.
Oracle's lead hasn't dropped below 200m since the start of the race.
Team NZ have chipped away but they'll need do to a lot more.
Oracle's lead currently at 280m.
The lead hasn't changed much throughout the race but Oracle really only need to cover Team NZ
Both boats are reaching speeds approaching 30 knots while heading upwind.
Gate three is now in sight for Oracle - it looks like they will hold onto their lead through this crucial leg.
Team NZ about 200m back - as close as they've been.
Team NZ are on their foils as well and reaching some good speeds but the gap is too much
The lead keeps dropping but it might be too little, too late.
Oracle back to a 250m advantage. Gate three is approaching.