Question on sale of IPT

[Colin Colenso]

The 150 million figure came from KT's own mouth during the Reno players meeting which you were probably at...can't blame you for nodding off though mate

You can listen to it again on the IPT site.From memory the (strange) wording was "insiders value the deal at around 150 million".More than strange in fact seeing as you can't be much more of an insider to a buyout than the guy who's selling.That wording only served to make it sound like he was reading a press release that wuld be fed to a newspaper hack so that the hack could later put his own name to it in 'report' format without having to do any editing work

Thanks for clearing that up Mikey. I better keep remembering to take my memory pills
Colin

 

[SlimShafty]

Just some thoughts.

btw: I have no idea where this 150m number came about. I think it was just some forum speculation.

My own guess is 30-60m, rather than a number in the single digits. Maybe we'll find out, maybe we wont.

Colin

We will find out, but I already figured it out, the wording used "insiders value the deal at around 150 million" is the hidden secret that shows just exactly what he is getting, if you have to value the deal, your not talking all cash, your talking assets, and assets that don't really exist yet. and the term insiders is referring to himself

The IPT will most likely be bailed out with Ho paying KT what he has already put out and still owes (most likely 8 million) and this may even be paid in IPO stock from Ho Interactive which cost Ho a lot less, this explains the complicated nature of the deal and the linking of Ho going public with one of his ventures.

But KT is also looking to gain future considerations, like advertising sponsorship.

This is where KT can say the IPT was sold for what ever he feels the future considerations are worth to him, say 15 years as a top sponsor of the IPT, KT can look at that as 50 million, and say he gets to call one of the tournaments the IPT natural Cures open and still has logos on the tables? he could say thats worth 50 million and all the TV exposer on Versus another 42 million, so bingo 150 million deal with no money at all exchanging hands.

So KT can sell the IPT for the debt owed and future considerations that he feels are worth over 100 million to him, and if the IPT is successful, he could have pulled of a good deal for himself.

And the IPT could very well be worth taking over for Ho, he has many other entertainment ventures and this one also fits nicely into his gambling ventures as well.

If you look at past sales of in debt sports franchises, you have one thats pretty close to the same position. The PBA (professional bowlers tour) was sold for 5 million when it was in debt for 3 million and falling apart at the seams. Thats basically 8 million dollars paid for the PBA, and I would argue the IPT is in a similar position, TV ratings are about the same even after the new owners made adjustments, Average ratings before the sale (0.8) the IPT pulled around a 1.0 very much the same.

 

[DaveK]

I must be very dumb because I just can not understand just what it is that Kevin Trudeau is selling to Ho.

Would someone please explain to me just what it is that he is selling.

Goodwill ? (snicker snicker snicker)

Dave

 

[!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 )

 

[ribdoner]

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 )

They've picked out some PINK and ORANGE jumpsuits.

DA is soooooooo cute in them and I'm sure they'll have a positive impact on his popularity

 

[AuntyDan]

The 150 million figure came from KT's own mouth during the Reno players meeting which you were probably at...can't blame you for nodding off though mate

Ahh, but perhaps he was quoting in Hong Kong dollars? 150 million would be about 20 million USD right now, a marginally more sane figure.

Either way though it just plain makes no sense. All it took to setup the IPT was enough cash to fund decent prize purses, and a modicum of tournament and business organizational skills that can be purchased easily enough.

If Ho really wanted his own Pro Pool tour and really had 20 million USD, let alone 150 million, that he was willing to spend on it what would he possibly need the IPT for? All they have to do is announce an "HPT" is being formed, double or triple the IPT's prize funds, put on events at around the same time and it's farewell KT and crew.

 

[TATE]

I must be very dumb because I just can not understand just what it is that Kevin Trudeau is selling to Ho.

Would someone please explain to me just what it is that he is selling.

This reminds me of the Emperor's new suit.

The basic concept is, it's only worth money if there is a profit at the end of the tunnel, or an expansion opportunity for a going concern, or a cost savings from a merger, or if you're going into that business picking it up for pennies on the dollar instead of start-up costs.

Just an example, it might be worth it for Matchroom, for example, to pick it up to expand their schedule. They would have to probably revise the payouts and fire everybody but it might be do-able.

Chris

 

[jay helfert]

The basic concept is, it's only worth money if there is a profit at the end of the tunnel, or an expansion opportunity for a going concern, or a cost savings from a merger, or if you're going into that business picking it up for pennies on the dollar instead of start-up costs.

Just an example, it might be worth it for Matchroom, for example, to pick it up to expand their schedule. They would have to probably revise the payouts and fire everybody but it might be do-able.

Chris

The IPT is damaged goods now. I don't think Barry Hearn would want to be associated with this product or name in any way. He is much smarter than that.

 

[professorpool]

Which is probably one of the reasons he kept clear in the first place..

 

[av84fun]

I fully agree. And by the way, has there been any CREDIBLE announcement...other than from IPT sources that there are....in fact...any negotiations taking place between that IPT and Ho?
Thanks,
Jim