Perpetual Loyal keeps the fight on high seas after ditching protest Red alert: Perpetual Loyal hang their red protest flag off the stern after a run-in with Wild Oats XI shortly after the start of the Sydney to Hobart on Thursday. The Sydney to Hobart had barely begun its run south on Thursday before the dreaded prospect of the race being decided by the judiciary emerged, when line honours contender Perpetual Loyal had raised its red protest flag for an incident after the start. That black cloud hovered for 3½ hours, when, as the crews settled for their first night at sea, Perpetual Loyal's owner and skipper Anthony Bell called on Skype to say they would not be continuing with their protest. "Just had team meeting; decided not to proceed with protest," Bell announced at 4.21pm. At first we thought we may have been fouled - but ...  Then, at 4.43pm, Bell called to say: "Pretty light winds [11-12 knots] so doing our best to keep boat going as fast as we can in non-ideal conditions." As the sun set after a dramatic day, defending line honours champions Wild Oats XI was in first place. After a thrilling start to the race under warm sun and crisp blue skies and in an east to south-easterly 12 to 15 knot wind, Wild Oats XI led the fleet out of Sydney Heads and soon put a reef in her mainsail. Trailing behind them was Perpetual Loyal, Black Jack, Giacomo, Ragamuffin and Wild Thing. But by then controversy and drama was already starting to unfold. Apart from Perpetual Loyal having hoisted their protest flag soon after the first mark, where she lost distance on the approach in a tight duel with Wild Oats XI - only to cross behind Wild Oats XI and Beau Geste - the 1997 line honours winner Brindabella was forced to return and re-round the start mark after breaking the line early. Meanwhile, the size of the 94-strong fleet started to decrease. The Welbourn 50 entrant, Audi Sunshine Coast, was the first to pull out due to damaged rigging. "Subdued would be the best way to describe how I feel - disappointed," her skipper and owner Rod Jones said. Soon after, the Adrian Dunphy-owned Andrews 52, Dodo, followed with a ripped mainsail and headed back to the Cruising Yacht Club of Australia at Rushcutters Bay. As the fleet sailed into a light southerly and in uncomfortable conditions, an intriguing tactical battle began to unfold between the line honours favourites, as they prepared their angles for overnight. At 8.30pm on Thursday, Wild Oats XI led the fleet nine nautical miles south east of Jervis Bay, sailing at 13.7 knots. Perpetual Loyal was next at 12 nautical miles and 15 knots, followed by Black Jack at 10 nautical miles and 9.9 knots, Beau Geste at eight nautical miles and nine knots, Ragamuffin at seven nautical miles and eight knots, Giacomo at 13 nautical miles - but east of Jervis Bay and 16.2 knots - and Wild Thing, which was still closest to shore of the seven big boat contenders, comprising four maxis, two Volvo 70s and one Botin 80 and inside the rhumbline at two nautical miles east of Jervis Bay and 11.2 knots. Wild Thing navigator David Turtom said by satellite phone: "We are trying to get as far south as fast as we possibly can. That is Plan A. We are pretty happy to be in touch with the front group.