Tampa Bay Devil Rays, Ltd., Naimoli Baseball Enterprises, Inc., Tax Matters Partner - Page 8




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          baseball players that the partnership drafted and signed in late            
          1997 and early 1998 for the Devil Rays’ 1998 major league                   
          baseball season.                                                            
               During 1995 and 1996, the partnership received funds from              
          customers as deposits on advance season tickets (representing 25            
          percent of the total stated season ticket price), as deposits on            
          reservations for private suites, and one sponsor fee in                     
          anticipation of major league baseball games to be played by the             
          Devil Rays in St. Petersburg, Florida, during the 1998 major                
          league baseball season.                                                     
               On the application form for the advance 1998 season tickets,           
          it was indicated that the customers’ deposits were                          
          “nonrefundable”.  However, in spite of the reference to                     
          nonrefundability on the application forms for advance season                
          tickets, if the partnership did not fulfill the conditions                  
          specified in the March 1995 major league baseball resolution and            
          agreement, if the partnership and the Devil Rays were not                   
          eventually and finally approved to participate in major league              
          baseball, and if the Devil Rays failed to play major league                 
          baseball games in 1998, the partnership would have been required            
          to refund the deposits received from customers in 1995 and 1996             











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