San Diego and Bermuda have been named finalists to host the 35th America’s Cup in 2017. Chicago, which had also submitted a bid, was dropped from consideration by the America’s Cup Event Authority, but will be considered as a likely venue for America’s Cup World Series racing in 2015 and 2016.

“Both Bermuda and San Diego have made very compelling cases to be the host for the next America’s Cup,” said Russell Coutts, director of the America’s Cup Event Authority. “We will be in good hands with either venue.”

The island of Bermuda sits 640 miles east-southeast of North Carolina and is known by sailors for the Newport to Bermuda race, as well as the Bermuda Gold Cup match-racing event. According to its bid, Bermuda would keep America’s Cup racing close to its shore, within the Great Sound.

San Diego is one of only seven cities to have hosted the America’s Cup, having previously hosted in 1988, 1992 and 1995. In previous events, the course was held far offshore, on ocean waters beyond Point Loma. This time, the city is proposing hosting the event in San Diego Bay to make for prime viewing opportunities for spectators.

The America’s Cup Event Authority hopes to select a host city by the end of 2014. It will be working with each bid committee to finalize logistics requirements and commercial opportunities, as well as to establish needed relationships with private and public entities. “We are now able to focus on two venues that are motivated and enthusiastic at the prospect of hosting the next America’s Cup,” Coutts said. “I’m confident that we’re on target to finish with a venue that allows us to achieve our goal of hosting an exciting and successful America’s Cup built on a strong commercial foundation.”

San Francisco hosted the 2013 version of the race but was earlier taken out of consideration to host again.