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were encouraged about forming a racing league because many of the
owners in the Association had experience in sports franchising
and, by 1991, there was media coverage of the 50-foot class of
boats, e.g., television programs and hundreds of magazine
articles.
3. Chartering Activity
The Diane was well suited for racing or racing-related
charters, with its good design, decent size, simplicity of deck
layout and sail plan, good sails, stable platform, and reasonable
price. Further, petitioners foresaw that people would charter
boats in order to test crews, sails, and other equipment, and to
compete in events. Chartering for a race is common.
In order to obtain charters during the years in issue,
petitioners placed advertisements in yachting magazines and the
New York Times, created and maintained a Web site, used a broker,
and sent out promotional materials. For publicity purposes,
petitioners placed the Diane in “the most visible” regattas each
year. Petitioners calculated that they would make a profit if
they could find five or six steady charterers.
4. Resale
Petitioners expected to make a profit from the Diane because
they had profited from the resales of their prior boats and
thought that the replacement value of boats would keep
increasing.
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