Favourite Wild Oats XI was first out of Sydney Harbour on Wednesday and maintained the early lead ahead of fellow super maxi and defending champion Ragamuffin Loyal in the annual Sydney to Hobart yacht race.

With spinnakers up, the 76-yacht fleet weaved its way around thousands of spectator craft in the harbor before heading out to the Tasman Sea for the 628-nautical-mile (723-mile; 1,163-kilometer) race to the island state of Tasmania.

Five-time line honors champion Wild Oats XI's race record from 2005 is 1 day, 18 hours, 40 minutes, 10 seconds — a time that could be in danger of falling this year, given the favorable weather forecasts.

By late Wednesday afternoon, Wild Oats XI held a slender lead over Ragamuffin Loyal, with Lahana in third place as the yachts sailed down the southern coast of New South Wales state.

Ragamuffin Loyal was being skippered by 85-year-old Syd Fischer, who is taking part in his 44th Sydney to Hobart race.

Two hours before the start of the race, officials said super maxi Wild Thing, the 2003 line honors winner, would not be allowed to compete because it had not provided necessary documentation following hull modifications.

Cruising Yacht Club of Australia commodore Howard Piggott said the boat's owner had failed to provide paperwork after the length of the yacht's hull was extended from 98 feet to 100.

"The race committee has worked with the owner of the boat to allow him up to three hours prior to the start of race to provide the documentation required," Piggott said. "However, this has not been forthcoming. The race committee has no option but to not accept the entry of Wild Thing."

Wild Thing had not raced since being modified.

"We are absolutely devastated to be told at the 11th hour that we are unable to race to Hobart," Wild Thing skipper Grant Wharington said. "We're a bit stuck for words as to why it happened."

Wharington said he had his mobile phone switched off during a pre-race briefing to his crew when Piggott tried to call on Wednesday morning.

"As everybody turned their phones back on just before 11 o'clock (two hours before the race), hundreds of messages from everybody saying, 'It's all over the press, we've been knocked out,' and we were absolutely dumbfounded," Wharington said.