America's Cup challengers release spectacular footage of near-disaster in training

US America’s Cup challengers American Magic have released stunning footage of the team narrowly avoiding disaster during a training session off Rhode Island.

The footage from Instagram shows the American syndicate’s smaller AM38 test boat flying nose first into the water, with the boat quickly capsizing.

“So you wanna be a test [boat] pilot? (Starring the Mule and @danmorrissailing’s close encounter with the mast, back up in Newport),” was the caption for the Instagram post.

It's understood it was late last year in the earlier stages of training, but the American Magic crew are yet to reveal exactly when or where the incident happened.

It's also believed former Team New Zealand skipper Dean Barker was at the helm at the time.

The AC38 is half the size of the AC75 that'll be used in the America's Cup in Auckland next year.