And here is KT's letter

[Holly]

ok....but what about -
1. The checks were fed-ex'd but Sat. delivery was not checked on the form?
2. The checks were being sent (according to many reported calls to IPT offices from several players)...on Tuesday, the week after the IPT Reno event, ok, now the following Friday and then again two weeks or so later on Fri. and then again the following Tuesday. How many times now has the IPT said the checks were being sent?

Very interesting that suddenly a long explanation about the Ho Interactive deal with two reams? of paper contained in the contract? is the reason.

I personal have been involved in US Federal governement contracts, including with the DOD when working in Consulting and you know what...they were never 1000 pages, not even close. Also, I would like to know during a business buyout, prior to an actual sale taking place, are the current debts not allowed or required to be satisfied? Unless KT is trying to saddle Ho with all his outstanding balances in relationship to the IPT and avoid paying out of pocket I just don't buy it that "legal reasons" are preventing the players from being paid. Instead...he asks everyone again for the what 5th, 6th or 7th time to be patient, while players scramble to cover expenses and still try to hold the faith. There is an old saying, "Fool me once shame on you, fool me twice, shame on me."

 

[ironman]

If Mr. Ho wanted a pool tour as part of his empire, why wouldn't he just start one? Or work with one of the promoters in Asia, if that is where the true public market is?

The IPT does not have players under an exclusive contract, so he can't be buying their enforced participation.

What exactly would he be buying?

If a person of means rolled into town, dangling big money and nice venues, AND put the money in escrow, does anyone want to bet that the players wouldn't show up?

This is the most logical point I've heard yet!

 

[Holly]

Tate...dead on in your analysis and commentary!

 

[straybullet]

I've been involved with my share of buyouts and I read something else out of it. He will no longer commit his funds to pay IPT debt while he is trying to unload it.

If he can't sell it, meaning someone else will assume the debt, I think they'll liquidate, first with a chapter 11 then with chaper 7. Why risk the money when you can just discharge the debt? If he really had long term plans, like going public, then not paying the players - which is a big public relations DISASTER - is the worst thing you can do.

He is trying to unload an albatross. Everybody here seems to think the IPT is some big famous thing. It's not. The public is virtually unaware of the IPT. Big ideas for an industry that cannot fund big ideas.

My prediction is the annoucement will be the deal fell through and the IPT is seeking protection while they reorganize.

For the hopes and dreams of all the players and the good people who want to make their dream of a viable pro tour come true, I sincerely hope that I am wrong.

Chris

Chris,

I mentioned this possibility in another thread. The common term used is "Suicide Pill" or the "Jonestown Defense" but it is usually used to prevent a "hostile" takeover. It doesn't make sense why Kevin would use this strategy as it would only damage his reputation even further.

I believe that the players were not paid because of a few "possibilities":

Possibility #1 - Someone alerted him that he was tossing good money after bad. He was advised that he would never turn a profit unless he sold out. Duhhhh. This is why he sought out a buyer for the IPT, Stanley Ho and Ho Interactive. Announcing the deal and the cancellation of the London event in Reno was possibly his way of saying he was bailing out to allow another person/company take responsibility for the IPT.

Possibility #2 - Given the facts of possibility #1, he was also advised that there was nothing in writing that would make him legally responsible for paying the players. There would be nothing to force Ho Interactive to make good on the promises Kevin Trudeau made in 2005-2006. Given the debt that Kevin has amassed during the first few events, these payments would take priority before he could pay the players. This means that the money wasnt there to pay them in the first place. He has probably made a deal with Ho INteractive to pay the players for Reno after the sale is finalized which relieves him of that responsibility. Hopefully that is the case so that everybody gets paid.

These are just possibilities, and my opinion is speculative due to not having any more information than anybody else.

This is what I do know:
There is no reason to freeze operating capital during an acquisition. That is a stupid, ridiculous excuse. If he has 30 accountants working for him, have one of them call me personally and explain why. ROTFLMAO! His letter was filled with a bunch of ridiculous garbage that sounds great if you don't know any better, but to those of us that do know better - let's just say I fell out my chair laughing.

There are only "possibilities" that can be discussed because nobody in the IPT office is willing to inform anybody honestly. There is a lot of hearsay and fragments of information being tossed around. I hope that tomorrow's "Big Message" sheds some light and hope into the lives of the players. It would be wise for the players not to sign anything or do anything with the IPT without legal representation from here on out - to include getting EVERYTHING in writing. The players need to hold the IPT accountable for their actions - legally. That's not being hostile, its just being smart. Linda, Mike, Markus, Pat, Colin, Tammy, - remember this - look out for number 1 first.

 

[!Smorgass Bored]

It's Them... I Swear

I think everything will be OK... My private tabloid photographer snapped a picture of KT preparing to take Deno out for a new wardrobe.
Doug
( Deno looks good... imo )

 

[RunArak]

I think everything will be OK... My private tabloid photographer snapped a picture of KT preparing to take Deno out for a new wardrobe.
Doug
( Deno looks good... imo )

Doug..

That Avatar and caption below is a flipping hoot!! LMAO

 

[Boro Nut]

I'm buying stock...

Oxo or Bovril?

Boro Nut

 

[jay helfert]

Chris,

I mentioned this possibility in another thread. The common term used is "Suicide Pill" or the "Jonestown Defense" but it is usually used to prevent a "hostile" takeover. It doesn't make sense why Kevin would use this strategy as it would only damage his reputation even further.

I believe that the players were not paid because of a few "possibilities":

Possibility #1 - Someone alerted him that he was tossing good money after bad. He was advised that he would never turn a profit unless he sold out. Duhhhh. This is why he sought out a buyer for the IPT, Stanley Ho and Ho Interactive. Announcing the deal and the cancellation of the London event in Reno was possibly his way of saying he was bailing out to allow another person/company take responsibility for the IPT.

Possibility #2 - Given the facts of possibility #1, he was also advised that there was nothing in writing that would make him legally responsible for paying the players. There would be nothing to force Ho Interactive to make good on the promises Kevin Trudeau made in 2005-2006. Given the debt that Kevin has amassed during the first few events, these payments would take priority before he could pay the players. This means that the money wasnt there to pay them in the first place. He has probably made a deal with Ho INteractive to pay the players for Reno after the sale is finalized which relieves him of that responsibility. Hopefully that is the case so that everybody gets paid.

These are just possibilities, and my opinion is speculative due to not having any more information than anybody else.

This is what I do know:
There is no reason to freeze operating capital during an acquisition. That is a stupid, ridiculous excuse. If he has 30 accountants working for him, have one of them call me personally and explain why. ROTFLMAO! His letter was filled with a bunch of ridiculous garbage that sounds great if you don't know any better, but to those of us that do know better - let's just say I fell out my chair laughing.

There are only "possibilities" that can be discussed because nobody in the IPT office is willing to inform anybody honestly. There is a lot of hearsay and fragments of information being tossed around. I hope that tomorrow's "Big Message" sheds some light and hope into the lives of the players. It would be wise for the players not to sign anything or do anything with the IPT without legal representation from here on out - to include getting EVERYTHING in writing. The players need to hold the IPT accountable for their actions - legally. That's not being hostile, its just being smart. Linda, Mike, Markus, Pat, Colin, Tammy, - remember this - look out for number 1 first.

Possibility #3 - The "buyout" is announced with new ownership. They will take over starting with Chicago. Unfortunately, the Reno event is a wash, no one gets paid. Every thing starts fresh in Chicago. How do you like them apples?

 

[cheesemouse]

Possibility #3 - The "buyout" is announced with new ownership. They will take over starting with Chicago. Unfortunately, the Reno event is a wash, no one gets paid. Every thing starts fresh in Chicago. How do you like them apples?

Jay,
Your getting booted at that event has really pissed you off hasn't it?....

 

[jimmyg]

Possibility #3 - The "buyout" is announced with new ownership. They will take over starting with Chicago. Unfortunately, the Reno event is a wash, no one gets paid. Every thing starts fresh in Chicago. How do you like them apples?

Possibility #4 - No announcement at all

Possibility #5 - Another delay

Possibility #6 - KY (oops KT) announces that HE is buying out HO

Bottom line = Unfortunately, still no checks.

 

[ScottR]

Youve hit the nail on the head/ The first question anyone should ask when buying a business is can this be copied/can I simply do it myself?

I beleive the IPT has created some value as Randy pointed out, the qualification/tournament structure and the excellent website. They have some relationships in place and a small but reasonably well known brand (not Mcdonalds of course but probably more well known than ANY other pool brand/tour). If he had the players signed up he'd have much more value and I'm really suprised he didn't force this before attempting to sell. This alone makes me wonder if he's actually going to sell a large stake at this point or if he's just looking for capital to limp through the remaining 2006 schedule, and then sign the players up and restructure.

Yes anyone could probably do what KT has done if they had a spare few million but why reinvent the wheel if the grunt work has been done and the IPT is struggling and a good deal can be done?

Whatever happens I'm sure KT will spin it as "the biggest gazillion dollar deal in the history of the galacticgalaxyosphere", we'll probably never know the real value.

Not arguing, just taking your line of thought, let's see . . . .

Website = ~$100K
Qualification/Tournament Structure = not proprietary, one month of work (see next item)
Relationships = $???, one month of phone calls and organizing
Brand = known outside of the small pool world?? don't think so

Let's throw in $150K for the last 3 items and call it $250K in assets (at least half are intangible)

vs

Outstanding Prize Payments = $3m
Unknown Other Accounts Payable = lord only knows

=

Assuming a $3m+ debt and $250k in assets, with what projected future income stream?

Sounds like my kind of purchase . . . . pure sizzle.

 

[Southpaw]

To sum this letter up......The IPT is broke and Kt is trying to sell it to HOPEFULLY pay the players or take a long vacation to the Caribbean!

Southpaw

 

[jay helfert]

Jay,
Your getting booted at that event has really pissed you off hasn't it?....

That's ancient history buddy. I don't live in the past. You wouldn't see a single post from me if they had paid off in Reno.

 

[cheesemouse]

Oh, I see...your past is off limits but not those you rag on...hmmm...that is very convenent.....see ya buddy....

 

[jasper]

Jay,
Your getting booted at that event has really pissed you off hasn't it?....

Why did he get booted ?

 

[cheesemouse]

Why did he get booted ?

The short story is: Jay backed a player in one of the IPT earliest events>the guy cashes>there is some mix up in who gets what, where, and how>Jay gets in the wrong persons face>later Jay shows up to smoke and jokes with his old buddies at another IPT event(Reno I think) and some of KT's tooshhog security guy's show him the exit~~~persons non grata...but Jay has let that part of his life go he says....My facts could be wrong. I'm sure I will be corrected....

 

[jasper]

The short story is: Jay backed a player in one of the IPT earliest events>the guy cashes>there is some mix up in who gets what, where, and how>Jay gets in the wrong persons face>later Jay shows up to smoke and jokes with his old buddies at another IPT event(Reno I think) and some of KT's tooshhog security guy's show him the exit~~~persons non grata...but Jay has let that part of his life go he says....My facts could be wrong. I'm sure I will be corrected....

So thats why hes so hell bent on seeing the IPT fail.
And we thought he was looking out for the players !!!!!!!!!!!!

 

[straybullet]

The short story is: Jay backed a player in one of the IPT earliest events>the guy cashes>there is some mix up in who gets what, where, and how>Jay gets in the wrong persons face>later Jay shows up to smoke and jokes with his old buddies at another IPT event(Reno I think) and some of KT's tooshhog security guy's show him the exit~~~persons non grata...but Jay has let that part of his life go he says....My facts could be wrong. I'm sure I will be corrected....

Almost, but not quite....

All of the enthusiastically negative Prophets of Doom pooled our money together and hired a witch doctor from an albino pigmy tribe in the African rain forest to do a voo-doo death dance to the godess of the sun in hopes that the IPT would fail miserably and leave the players out in the cold... yeah... yeah... that's it - that's the ticket...

after that, they posted wanted pictures all over Vegas - Enemies of The IPT - Wanted: Dead or Alive...

Bravely, Jay ventured into the playing area at the Venetian - he had ignored my advice to wear one of those Groucho Marx-big nose/glasses/mustache thingies... bad move - and before he knew it - Jay was wisked away by security. Life's a bytch - but Jay has shrugged it off and rolled with the punches. In the end, Jay still has an unblemished record as an honest tour director. He walks like he talks - no BS - and he doesnt rip off pool players or every day people to earn his money.

 

[ironman]

btw: Who actually said that the checks were in the mail? And where is the evidence for it?

I can't recall ever hearing that the checks were in the mail.

Colin

When you get right down to it, what's it matter whay he says. The man can talk longer and say less than anyone around.

 

[ironman]

I think everything will be OK... My private tabloid photographer snapped a picture of KT preparing to take Deno out for a new wardrobe.
Doug
( Deno looks good... imo )

Hope he got a new tamborine too.