A MOMENT IN 1993, IN A LAWYER’S OFFICE IN Wisconsin: Erik Buell sits at his attorney’s desk, with a contract from Harley-Davidson in front of him that will terminate the then-current Buell Motor Corporation while creating a new entity, the Buell Motorcycle Company.
In many ways, this is a fulfillment of Erik Buell’s dream: He will finally have the resources to create the American motorcycles he has passionately, fervidly wanted to make. But his attorney sits there urging that he not sign the contract: “It amounts to indentured servitude,” he says. “You’re putting yourself in bondage if you sign this contract.”
In exchange, Harley-Davidson would inject just $500,000 in capital for 49 percent of the company and take Erik's house as security in case the investment goes bad. "If you insist on signing this," his attorney warns, "you have to sign a letter saying this law firm has most strongly advised against such action." Erik eventually signs both.