AzHousePro said:Dear IPT Players:
In my last e-mail I told you to pop the champagne. This may have been a
little premature; for that I sincerely apologize. First, I want to clarify
the most important issue. You all will be paid 100 percent of the $3
million prize fund from the World Tournament. You will be paid 100 percent,
in full.
As you are aware, President Bush has signed a new law making online gaming
in America illegal. Online gaming was an integral part of the IPT business
model. Over one year ago I met with representatives at HoCasino.com and
structured a strategy that would combine online gaming with our pool website
and televised pool matches. This business "trade secret" was the magic
ingredient that produced a viable, profitable business model and revenue
stream that would make the IPT a profitable ongoing business enterprise.
The unforeseen, surprise, and sudden outlawing of online gaming in America
dramatically and instantly reduced the IPT's 2006 sponsorship revenue and
additional funding sources by over 80 percent. This totally unforeseen and
unfortunate development has caused a temporary shortfall in IPT revenues.
This has forced us to delay your prize money from the last tournament. Even
with the funding that we have received in the last week, a major shortfall
still exists. Even with this shortfall, it is still the IPT's intention to
pay all players, in full, 100 percent of the prize money promised. We are
organizing additional funding sources now to get you paid in full as soon as
possible. For the future, we have commitments, based on the IPO of Ho
Interactive, of $25 million from institutional investors after the first of
the year.
The funding and sponsorship money that was promised to us was reduced to
only 20 percent of what was originally committed. Other sponsors and
funding sources are being organized now.
Again, I want to make perfectly clear that all players will be paid 100
percent, in full. At this time, due to these funding shortfalls, the IPT
cannot immediately pay all of the prize money. What we are committed to do
is pay all players a portion of the prize money due each week, starting this
week, until you are paid in full. I appreciate your displeasure with not
receiving 100 percent of the money immediately. However, please know that
no one is more disappointed than me.
This situation was created by the congressional legislation outlawing online
gaming. It was completely unforeseen, unavoidable, and came as a complete
surprise to everyone. Partypoker and other publicly traded online gaming
companies lost 70% of their value in one day because of this surprise law.
Investors, including myself, lost over $15 billion in combined valuation
following the signing of this new legislation. Nobody in the online gaming
community or international investor community saw this coming. Because of
it, our investors, sponsors, and funding sources temporarily put the IPT on
hold. We are handling this situation and are doing everything we can to
correct it. Based on this new U.S. law, the IPT's business model is
currently being revised to deal with this substantial change.
Many of you may wonder why I do not personally put the money in the IPT to
pay the players. I have already personally invested over $10 million to
date into the IPT. The IPT must operate as a profitable, independent
corporation to achieve long-term success. Remember, I have the most to lose
if the IPT is not successful. In business, unforeseen circumstances can
dramatically change the viability of an enterprise. Hotel owners in New
Orleans had to dramatically alter their businesses when hurricane Katrina
wiped out their hotels. People who were promised rooms did not receive
them. The hotel owner lost money. Everyone was adversely affected by the
unforeseen hurricane. When an airline is not profitable, it closes down.
Passengers who paid for tickets lost all their money due to the business
failure. The stockholders and owners of the airline lost the most. When
companies fail to achieve profitability they file bankruptcy. All of the
creditors do not get paid. Customers lose, vendors lose, employees lose,
and stockholders lose. These things happen in business all the time.
Business owners do not personally fund companies whose business models are
adversely affected by changing market conditions, new legislation, or
natural disasters. Donald Trump bankrupts companies instead of personally
putting cash into those enterprises. The wealthiest people in the world do
not continually fund businesses out of their personal assets. They have a
lot more money than I do, yet they still don't personally fund business
ventures. To date, I have personally invested more money into the IPT than
any successful business person would ever consider. I took the risk and
invested the money when nobody else in or out of the industry even
considered putting up a dollar. I did it because of my sincere love of the
game, my personal friendships with several players, and my total belief that
a professional pool tour can be an enormous success.
Due to the new U.S. law, the IPT's business model and operating structure
will change. I have $10 million invested in this business and I have every
intention and desire to deal with this situation and make the IPT a
long-term viable business and tour. I have the most to lose. You, as
players, should have a strong desire for the IPT to succeed. If the IPT
continues and succeeds, all of you will financially benefit. If the IPT no
longer exists, we all lose. As players, you should consider being
understanding and supportive of this tour. It is in your personal best
interest to do whatever you can so that the tour deals with this business
model change and continues year after year.
I want to answer directly several questions. Will there be another
tournament? The answer is absolutely yes! Most importantly, every player
will have been paid 100 percent, in full, before the next tournament. Will
there be a 2007 season? The answer is absolutely yes. We are working with
venues and dates now. We hope to announce the tournaments for 2007 very
shortly. Is the Ho Interactive merger completed? No. We are still
finalizing documents for the Ho Interactive acquisition. The delay has been
caused by a dramatic restating of our pro forma and business plan based on
the new U.S. legislation. It still appears to be a deal that will happen.
However, our backup plan is to do an independent IPO of the IPT regardless
of whether HoCasino.com is involved.
Our television coverage on VS in primetime is expanding. Our European Euro
Sport TV coverage is also expanding. We will be announcing further
television broadcasting deals for IPT tournaments. Our broadcasting
partners are excited and committed to the IPT for the 2007 season and
beyond. The IPT continues to achieve more television broadcasting than any
billiard tour in history. We continue to generate never before seen ratings
for billiards. With massive TV coverage world-wide, and strong ratings, we
are attracting major sponsors for the 2007 tour and beyond. Fortune 500
companies look at TV distribution and ratings. We have achieved
unprecedented success in both of these areas. Major sponsors budget a year
in advance for sponsorship initiatives. I will have great pleasure
silencing critics when we announce unprecedented major corporate sponsorship
for the 2007 season.
Please remember that when I launched the IPT we were met with massive
negativity and skepticism. I was criticized for every decision I made by
players, so-called fans, billiard organizations, and competitors. The IPT
plan was the most ambitious and risky business endeavor in billiards
history. I have my own personal money at risk. I have been attacked
personally and repeatedly even though we have, in fact, achieved great
things. Remember, we have paid out over $3 1/2 million in prize money
directly to the players. We have put on world-class tournaments sparing no
expense, providing the best accommodations for spectators and players. We
have paid over $1 million providing free food to players. For the first
time in billiards history we have secured primetime television coverage in
America with a major broadcast partner. For the first time in history, pool
is being broadcast live in primetime in Europe. For the first time ever,
pool is achieving spectacular ratings on television. Major sponsors are
coming onboard.
Yes, not having the players paid from the last tournament is more than
disappointing. Yes, having to cancel a planned tournament is disappointing.
Yes, having to reschedule several tournaments is disappointing. I admit
that our 2006 tournament schedule was overly optimistic and overly
ambitious. If I were to do it all over again, I would have had only one
tournament this year and built the business slower. Creating such high
expectations based on the commitments I received from funding sources and
sponsors was a mistake.
Overall I believe that the positives dramatically outweigh the negatives.
Mistakes were made. I am sure more mistakes will be made. I believe we all
should focus on the positives and the achievements we have made so far, and
focus on the future as we deal with this challenging temporary situation
caused by the new U.S. legislation.
I wish I could call each and every player personally, but time commitments
make this impossible. I would like to personally thank the overwhelming
majority of players who have e-mailed me and left messages offering their
support, understanding, and patience. To the players who have been vocally
negative, I would like to say I appreciate and understand your frustration
and disappointment. I would ask for your understanding and patience. At
this point it would be easy for me to shut down the IPT and have it become
another failed sports business venture like the USFL, XFL, or the dozens of
other attempted sports leagues that have failed. This would be the easy
thing to do. However, my whole life I have received great pleasure in
silencing critics and proving people wrong. To all the nay-sayers I would
simply say, "You will eat your words."
Remember, all players will be receiving checks this week and each week
thereafter until paid in full. There will be a robust 2007 season and
beyond. If you want to play in these tournaments I encourage you to do so.
If you choose not to play in IPT events, that will be your choice. I am
taking the IPT to the very top and whoever wants to come along with me is
welcome!
Remember, the dogs may bark but the caravan moves on!
Very truly yours,
Kevin Trudeau, Founder
International Pool Tour
LOL, this is absolutely ridiculous. This entire letter is loaded with more lies and stalling tactics. The whole story that he is trying to get everyone to believe is goddamn bullsh*t. The only reason he sent this is to try and appease everyone for a little while longer because he knows that the players have reached their toleration limit. The fact that he still thinks that anyone will believe any of this is appalling to say the least. More stall from the biggest piece of sh*t I've ever seen.
Oh and he didn't reschedule because he "couldn't find another venue".....anyone still beleive that excuse now?
