Before we can accept KT's description of a hurricane analogy, as some shock, unpredictable incident, that messed up pro-forma valuations of the IPT, we need some more information.
btw: Some have said that the legislation that passed was not a shock. But it certainly was. It sent stocks tumbling. These stocks would have been discounted significantly prior to the announcement if it had been expected.
But the information that we need to believe, is how can such a high value be placed on the capability to add online gaming to the IPT mix?
Now none of us are experts in this field, but we have speculated on a few mechanisms.
1. Exposure: Obviously gaming sponsors get value out of being partnered to the sport, but title sponsorship from other types of companies can offer similar amounts. The value for being able to add a gaming sponsor to the list of sponsors is probably in the range of 300,000 to 1MM per event for the kind of exposure the IPT has been getting. Just a guess based on some sponsorship charge estimates for past World Pool and World snooker events.
2. The other possible mechanism that has been suggested is exclusive rights to gaming on the events. But as far as I know, there is no way to stop other gaming companies from offering betting on the events. But through sponsorship or partnership, exclusivity could be granted to on website coverage links to the betting for this partner and through venue exclusivity of more detailed and real time results, allowing the partner to offer more betting features and to hold bets longer. This would be a significant advantage over competitors.
Now how much all this could be worth is hard to estimate. But it's hard to imagine it could be worth more than 10-20 million a year total. One would have to know progressive estimates of value from inside professionals Also factored in must be estimates of online membership numbers, viewership, expected number of events etc.
Also, perhaps there are other synergies that we're not aware of. And perhaps this information is too secretive to be disclosed.
But if this hurricane really did hit and hurt the IPT, then one would like to know the nature of that hurricane and it's real impact on the business, because I suspect, that people will not be convinced by this explanation of an unexpected, unpredictable disaster befalling the IPT, which compares the IPT to an innocent victim, much the same as business owners in New Orleans.
Without people believing that such a disaster took place on the pro-forma valuations of the IPT, then naturally the intended purpose of rallying the troups and their sympathies behind the IPT will likely fall short.
So again the catch-cry will continue, that being for more information, and information that both makes sense and is provable.
A Solution?
Perhaps an independent assessment of the books and records of prior business discussions and operations. That independent counsel could confirm such probabilities to players and supporters, without necessarily exposing sensitive business information.
Colin
btw: Some have said that the legislation that passed was not a shock. But it certainly was. It sent stocks tumbling. These stocks would have been discounted significantly prior to the announcement if it had been expected.
But the information that we need to believe, is how can such a high value be placed on the capability to add online gaming to the IPT mix?
Now none of us are experts in this field, but we have speculated on a few mechanisms.
1. Exposure: Obviously gaming sponsors get value out of being partnered to the sport, but title sponsorship from other types of companies can offer similar amounts. The value for being able to add a gaming sponsor to the list of sponsors is probably in the range of 300,000 to 1MM per event for the kind of exposure the IPT has been getting. Just a guess based on some sponsorship charge estimates for past World Pool and World snooker events.
2. The other possible mechanism that has been suggested is exclusive rights to gaming on the events. But as far as I know, there is no way to stop other gaming companies from offering betting on the events. But through sponsorship or partnership, exclusivity could be granted to on website coverage links to the betting for this partner and through venue exclusivity of more detailed and real time results, allowing the partner to offer more betting features and to hold bets longer. This would be a significant advantage over competitors.
Now how much all this could be worth is hard to estimate. But it's hard to imagine it could be worth more than 10-20 million a year total. One would have to know progressive estimates of value from inside professionals Also factored in must be estimates of online membership numbers, viewership, expected number of events etc.
Also, perhaps there are other synergies that we're not aware of. And perhaps this information is too secretive to be disclosed.
But if this hurricane really did hit and hurt the IPT, then one would like to know the nature of that hurricane and it's real impact on the business, because I suspect, that people will not be convinced by this explanation of an unexpected, unpredictable disaster befalling the IPT, which compares the IPT to an innocent victim, much the same as business owners in New Orleans.
Without people believing that such a disaster took place on the pro-forma valuations of the IPT, then naturally the intended purpose of rallying the troups and their sympathies behind the IPT will likely fall short.
So again the catch-cry will continue, that being for more information, and information that both makes sense and is provable.
A Solution?
Perhaps an independent assessment of the books and records of prior business discussions and operations. That independent counsel could confirm such probabilities to players and supporters, without necessarily exposing sensitive business information.
Colin
But can someone explain this to me?
