Comanche has won line honours in the Sydney to Hobart yacht race after Wild Oats XI was penalised by an hour for breaking race rules.

International jury chairman John Rountree said because of the breach of race rules — which are the International Racing Rules of Sailing under which the race was being conducted — Wild Oats XI was penalised one hour.

Wild Oats XI was found to have breached the rules over a tacking manoeuvre at the start.

Comanche crossed the line in second place nearly 27 minutes after Wild Oats XI.

Now though, the two maxis have swapped places in the record books with Comanche holding the new race record of 1 day, 9 hours, 15 minutes and 24 seconds — just over four hours faster than the record set by Perpetual Loyal last year — and Wild Oats XI the runner-up.

Comanche skipper and owner Jim Cooney said the decision was "fair and reasonable".

"I'm thrilled to be installed as the line honours winner. It's something we've worked very hard for," he said.

"It's always a bit of a shame it may happen in these circumstances [but] ... the jury's decided very clearly that there was an infringement in the harbour that penalised us.

"And when things come down to the wire so closely like that I think it's only fair and reasonable that the jury acted the way they did."

Wild Oats XI skipper Mark Richards said he and his crew would take the decision on the chin.

"Obviously, we're very disappointed but you know ... at the end of the day the result's the result and we've got to respect the decision of the jury," he said.

"It's not very often you smash a Sydney to Hobart record and get it taken away from you.

"We're very disappointed but we're also good sports. We have to take it on the chin, this one."

Sorry, this video has expired Wild Oats XI Skipper 'disappointed, but good sports'

He said he was surprised at the one-hour penalty.

There are no appeal provisions in the rules.

Overall winner announcement delayed

The lengthy protest hearing on Thursday caused the race organisers to delay the announcement of the handicap overall winner.

It is expected that the overall winner will be announced on Friday.

Comanche lodged the protest after the two yachts nearly collided when Wild Oats XI tacked near the start line, with Cooney claiming it tacked too late.

Under the Sydney to Hobart yacht race rules for 2017, an international jury is ready to hear any protests.

It is in the form of a tribunal that can call evidence from the skippers, tacticians, navigators and any others who the jury feels has information relevant to the complaint.

The jury can also view evidence such as television footage.

The allegation lodged with the jury was that Wild Oats XI was on a port tack, and Comanche was on a starboard tack, putting them on a collision course at the start of the race.

It alleged that Wild Oats did not complete its tack from port to starboard, failing to keep clear of Comanche, which was on a starboard tack.

The jury was told that under the rules Comanche had to avoid a collision and alter course before Wild Oats XI completed its tack, which was argued to be a breach.