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in a businesslike manner: (1) Dr. DeMattia failed to adequately
assess the activity's profitability; (2) the sponsorship
agreements failed to limit Dr. DeMattia's potential liability or
require Constant to participate in a minimum number of
tournaments during any given year; (3) Dr. DeMattia failed to
maintain expense ledgers or journals indicating expenses incurred
or the specific reason for expenses incurred; (4) Dr. DeMattia
failed to document Constant's golf performance at any given
tournament, the number of tournaments entered, or the potential
prize money available at any given tournament. Respondent also
argues that Dr. DeMattia's failure to implement any changes in
operating procedures and methods in response to mounting losses
indicates a lack of profit motive.
Petitioners argue that Dr. DeMattia entered into the
agreements and conducted the activity in a businesslike manner.
First, petitioners cite Dr. DeMattia's preliminary investigation
into the feasibility of the sponsorship as evidence of the
requisite intent. Dr. DeMattia testified that his decision to
sponsor his son was based on extensive research. For example, in
order to evaluate the investment's profitability potential, he
talked to a number of knowledgeable people regarding his son's
likelihood of playing on the PGA tour. Among others, Dr.
DeMattia spoke to his son's college coach at Stetson University,
the head golf instructor for Golf Digest, the golf coach at
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Last modified: May 25, 2011