Robert & Diane Schwartz - Page 4




                                        - 4 -                                         
          countries.  The people involved with the Association were also              
          involved with the America’s Cup race.  The America’s Cup occurred           
          every 4 years, whereas the Association would have ongoing races.            
          The incorporation papers signed in 1989 stated that the                     
          Association was formed as a “Social Club”.  By 1991, however,               
          owners were allowed to display advertising material from                    
          sponsors, and the Association reported sponsorship income in its            
          financial reports.  Mr. Schwartz joined the Association during              
          this period when sponsorships were being sought.                            
               Mr. Schwartz viewed the Association as “an opportunity to              
          potentially make a lot of money.”  By 1990, the Association                 
          obtained sponsorship of $3.5 million for a trip to Japan and                
          already conducted meetings with Volkswagen for other sponsorship.           
          Petitioners’ understanding of the Association was that any                  
          sponsorship money that came to the Association would be handed              
          down to the members equally.                                                
               Mr. Schwartz respected the advice from the Association’s               
          members because “that’s where all the best minds were” in the 50-           
          foot sailing industry.  Mr. Schwartz consulted with professional            
          racers regarding the business implications of owning a 50-foot              
          boat.  Mr. Schwartz also consulted other professionals, including           
          Stephen Benjamin, a sail manufacturer and sailing consultant,               
          regarding expenses that would be incurred, e.g., sails for the              








Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011