A possible explanation for the partial payment offer and other happenings:
Kevin Trudeau thought he could make money with the IPT and found out that he couldn't. So he tried to unload it onto Stanley Ho, and maybe others, and learned that big money men aren't as impressed by his flash and dazzle as Natural Cures and infomercial customers (and, I'm afraid, most of the pool world). So now he wants to end this thing as quickly and as cheaply as possible.
He could declare bankruptcy but that would be costly to his reputation (no need to say it) and the legal fees would chew up any cash remaining in the IPT (and maybe some from his own pocket). A better way would be give the tour to someone or some group and walk away. But no one will take it off his hands while it owes 3 million dollars. So he has to clear up this debt as cheaply as possible, and avoid lawsuits as well.
Hence the offer to the players to accept one-third payment in full settlement of their claims. In return for this payment the IPT will also require them to sign an agreement whereby they promise not to sue for any reason.
Problem solved? Only partly. He could still be sued by those who paid entry fees to qualifiers. There has to be a "2007 tour" or he could be sued for the return of the entry fees, since the only prize was participation in the 2007 tour. That's why turning the tour over to someone else is better than just closing the tour.
Of course, even if debt-free it's not clear that anyone credible would be willing to take over the IPT. But that is KT's opportunity to get away clean, so he must try for it. I suspect that he will be talking to potential white knights soon, if not already. Have there lately been any well-established billiard promoters taking his side lately?
My theory fails to explain why he is offering installments to the players rather than a lump sum. It would be more effective in getting the players to sign if it were a lump sum. The only explanation I can think of is that the IPT doesn't have the cash and KT is relying on the white knight, if he can find one, to take over the remaining installments. He is nothing if not an optimist.
Kevin Trudeau thought he could make money with the IPT and found out that he couldn't. So he tried to unload it onto Stanley Ho, and maybe others, and learned that big money men aren't as impressed by his flash and dazzle as Natural Cures and infomercial customers (and, I'm afraid, most of the pool world). So now he wants to end this thing as quickly and as cheaply as possible.
He could declare bankruptcy but that would be costly to his reputation (no need to say it) and the legal fees would chew up any cash remaining in the IPT (and maybe some from his own pocket). A better way would be give the tour to someone or some group and walk away. But no one will take it off his hands while it owes 3 million dollars. So he has to clear up this debt as cheaply as possible, and avoid lawsuits as well.
Hence the offer to the players to accept one-third payment in full settlement of their claims. In return for this payment the IPT will also require them to sign an agreement whereby they promise not to sue for any reason.
Problem solved? Only partly. He could still be sued by those who paid entry fees to qualifiers. There has to be a "2007 tour" or he could be sued for the return of the entry fees, since the only prize was participation in the 2007 tour. That's why turning the tour over to someone else is better than just closing the tour.
Of course, even if debt-free it's not clear that anyone credible would be willing to take over the IPT. But that is KT's opportunity to get away clean, so he must try for it. I suspect that he will be talking to potential white knights soon, if not already. Have there lately been any well-established billiard promoters taking his side lately?
My theory fails to explain why he is offering installments to the players rather than a lump sum. It would be more effective in getting the players to sign if it were a lump sum. The only explanation I can think of is that the IPT doesn't have the cash and KT is relying on the white knight, if he can find one, to take over the remaining installments. He is nothing if not an optimist.
