IPT a Pyramid Scheme?

J

jjinfla

Banned
If you google pyramid scam you get the following:

http://en.wikipedia.org/wiki/Pyramid_scheme

This will explain a pryamid scheme pretty well. Is the IPT a pyramid scheme? Most likely not. But I don't know.

If you scroll down you see a box that has "8 ball model". How interesting. Maybe that is why the IPT chose 8-ball. Coincidence?

Also mentioned is a "Ponzi Scam". Is that the great pool player Ponzi?

Of course if you look at the qualifiers as "passengers" and only the top dog, KT, and the two winning players being the next tier then it might look more like a pyramid. Or a MLM plan. And if the winners are being paid by money received from other contestents then it could be illegal.



Jake
 
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jjinfla said:
And if the winners are being paid by money received from other contestents then it could be illegal.



Jake
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If that was the case all tournements, where players paid an entry fee, would be illegal. IMHO

Steve
 
jjinfla said:
If you google pyramid scam you get the following:

http://en.wikipedia.org/wiki/Pyramid_scheme

This will explain a pryamid scheme pretty well. Is the IPT a pyramid scheme? Most likely not. But I don't know.

If you scroll down you see a box that has "8 ball model". How interesting. Maybe that is why the IPT chose 8-ball. Coincidence?

Also mentioned is a "Ponzi Scam". Is that the great pool player Ponzi?

Of course if you look at the qualifiers as "passengers" and only the top dog, KT, and the two winning players being the next tier then it might look more like a pyramid. Or a MLM plan. And if the winners are being paid by money received from other contestents then it could be illegal.



Jake
Click to expand...
I have eluded to this in this previous threads. My thoughts are no its not a pyramid scheme in its purest form. However it does share lots of similar characteristics and is not sustainable in its current form.

Lets take the N.A.Open...

Top 60 = PROFIT (Made 10,000 or more)
61st-120th = EVEN (After tax and expenses)
121st-200th = LOSS (After tax and expenses)
Unsuccessful Qualifiers = BIGGER LOSS!


The IPT events are top heavy and very few will walk away from this with much profit. However as has been stated this isn't too disimilar from other pool tournaments.

Where I believe the IPT are on shaky ground is IF, as it seems, they are using revenue from future tournaments to fund past events. This is simply not sustainable.
 
there is no crime for giving the FBI a bad lead.

and no they will not check if you have or have not paid your taxes, maybe? But they will focus on the org suspected of crime.
 
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The IPT isnt failed, as far as fact goes people are still have this month to attend qualifiers.

Which means money transfers may be taking place.

options are available(not a complete list, go ahead make the jokes):

1-individual lawsuits->maybe players get paid

2-prompt the FBI for investigative assistance
-->IPT not allowed to operate


My choice offer $1 to KT for ownership of IPT name and reestablish the IPT. Should this happen players still wont get paid.
 
sde said:
If that was the case all tournements, where players paid an entry fee, would be illegal. IMHO

Steve
Click to expand...

I believe that is why in the tournaments all of the money has to be returned to the players plus added money by the owner of the room.


That is why if $7 dollars is the entry fee $2 of the $7 goes to the owner as a greens fee then he turns around and gives back the $2 as added money.

The IPT may well have thought that qualifiers would draw 30-40 players. 30 players at $2,000 each would bring in $60,000. Ten tournaments in a week brings in $600,000. In one month you then have 2.4 Million. If you pay out 2 million you have a profit of 400K.

They just didn't get enough people to play in the qualifiers.

Jake
 
jjinfla said:
Of course if you look at the qualifiers as "passengers" and only the top dog, KT, and the two winning players being the next tier then it might look more like a pyramid. Or a MLM plan. And if the winners are being paid by money received from other contestents then it could be illegal.



Jake
Click to expand...


I think the APA might disagree with you there.
 
Da Poet said:
I think the APA might disagree with you there.
Click to expand...

Yeah, nothing wrong or illegal with the IPT format, not much different then any poker or other gambling setup. Most other gambling formats are much less individually driven, you pay your $1 in the lotto and 99% lose, and only a handful win, actually the IPT's format is better then any lotto or even the APA, and nothing like a pyramid scheme.

The IPT was a failed business plan, the only bad part of the IPT was all the pie in the sky promises that were based on the plan working 100% as they thought, and it didn't, as simple as that, in a pyramid scam those that get in early make all the money off the looser at the bottom that think they will make money but truly never have a shot. In the IPT if you won a Qualifier and made a tournament and got into the top 30 or so, you made money, your success was based on how you play, not how many suckers you sign up like in pyramid scheme.


The big lie or was that Kevin was going to finance this thing for the first 2/3 years with his money, he obviously had no plan to do that, or got nervous losing the first 3 million and wanted no part of paying another 3 if he feels the original business model has failed.

So the scam was not in the plan, but in the way he talked everything up and made false promises.
 
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