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Performance Handicap Racing Fleet (PHRF) is a handicapping system used in yacht racing. It allows dissimilar classes of sailboats to be raced against each other. The aim is to cancel out the inherent advantages and disadvantages of each class of boats, so that results reflect crew skill rather than equipment superiority.

The handicap number assigned to a class of yachts is based on the yacht’s speed relative to a theoretical yacht with a rating of 0. A yacht’s handicap, or rating, is the number of seconds per mile traveled that the theoretical yacht should be in front of or behind that yacht. Most boats have a positive PHRF rating, but some very fast boats have a negative PHRF rating. If Boat A has a PHRF rating of 15 and Boat B has a rating of 30 and they compete on a 1 mile course, Boat A should finish approximately 15 seconds in front of Boat B. Results are adjusted for handicap by the race committee after all competitors have finished.

The above is from Wikipedia.