EXCLUSIVE: FTP potential investors speak out (Part 2) [7]
Read the final part of this amazing interview with The Investors
In part two our exclusive interview with the potential investors for the Full Tilt Poker (FTP) business, we ask some of the most requested questions from our readers and also close this amazing insight into one of the biggest ever stories in the online gaming world with what the future will look like in the online poker sector with or without Full Tilt Poker.
In part one of the interview we heard from the investors, why the exclusivity deal Groupe Bernard Tapie has is unfair and not a great deal for FTP and their customers. How were they introduced to FTP and what is their idea for the business with the investors.
Now read on and see what the investors have to say about:
Q: What is the possibility of FTP entering the US again with any new investment company?
A: We and also I am sure GBT know that the US market is not possible either in the mid term or long term for FTP, there has been a great deal of talk about GBT doing a deal with the US DOJ about paying players their funds, which is totally correct and we understand there is a mechanism in place for this by both parties. However there is some belief that GBT has also done a deal on the estimated $1 billion in taxes/penalties owed by the former owners of FTP in the US. Last year the DOJ announced that the three main sites that they targeted owe in total $3 billion in penalties, given that FTP was one of the leading two, they certainly look at having a $1 billion debt on them still after paying out the players. We very much doubt GBT have managed to reduce this to zero, in return for paying out to players. The best any new enterprise can hope for would be exclusion from the US and a dilution of tax/penalties. Very similar to the recent payment structure by Sportingbet to the US, now they are free to entertain potential partners in the US.
Q:Have you had any discussions with current Directors and Board Members of FTP?
A: We were introduced to FTP by one of the Directors of the company, at that stage FTP were still operational but having problems with payment processing. I am sure your readers remember the NETeller story, well it was soon after the US shut down NETeller, that FTP had liquidity problems and were in need of an investor. Our introduction was made by one of the Professional Poker players, who also had a stake in FTP. However discussions with FTP were difficult, there was an air of over confidence, they were “too big to fail” mentality about them. Also it was difficult getting a consensus with them as there was so many directors and owners. In total I think there were 19 or 20 stakeholders involved. Yes there were main shareholders, I think at the time the biggest shareholder was at 20%, so never a majority shareholder and any major decisions need a lead majority, always difficult when they all had different ideas. We cannot mention names of board members of course for legal reasons, however I do remember seeing a document that showed payments to directors monthly of some $5 million. This is not substantial given the estimated $1 million a day in profit the company were turning over. But was not shown to us and we do not know if true or not, is the well reported player loans. The big problem for us and we think for FTP was the poker players involved in the business, they promoted it and deserved rewards, but I think FTP went to far in keeping them all happy and in return keeping the illusion alive of the biggest and best pro players only go to FTP. Any how the discussions broke down when if I remember correctly they were able to source another avenue for payments via Intabill.
"FTP is not on the brink they have collapsed and the brand is toxic"
Q: Do you think GBT will eventually seal the deal for FTP?
A: First of all, we wish the GBT deal the very best of luck, they are a smart company and if it is possible they can do it, they have the experience of reviving companies from the brink. But that is the problem, FTP is not on the brink they have collapsed and the brand is toxic. Much has been said about GBT saving Adidas and they did a great job, but Adidas was a strong brand and had a loyal customer base. The issue with Adidas was production, distribution and poor management. If those were the only problems with FTP then we would be confident that GBT would be able to save FTP. But it has far more serious issues, finance being the least of them. GBT are planning the same idea we are in essence, to retain the software and database and re-brand, this is what you HAVE to do. FTP or FTP2 will not work. The biggest problem is time, the longer the deal takes the more eroded the customer base, the software will be and so on. Already FTP competitors have similar functions to Rush Poker and many others are trialing their own versions of “Rush Poker”. But it all comes down to money and $300 million to pay out, plus investments in marketing, advertising and there will be law suits of all kinds, just seems too much to overcome. I hope we are wrong for all the players owed money, but that is how we see it.
Q: Why were you not first in before GBT?
A: I guess we were, before FTP went down, why did we not go back in when it went down, I guess it was the history of our previous meetings and discussions. However we are still very interested in the purchase, should the GBT deal not happen.
Q: What is the best players can hope for, will they ever see their money?
A: I think the US players have the best chance of seeing some of the funds returned should the GBT deal fall through, the DOJ has bank accounts seized owned by FTP. But it will be nowhere near the hoped for full refund on account balances, I am sorry to say. As for ROW it is grim if there is no deal, in any case the FTP assets will be sold down into liquidation and those funds could be used to make some sort of refund, but something like 5c or 10c in the dollar would be best case scenario for ROW.
We really hope that for the players and the online poker industry that has received so much negative press, and tarred many legitimate, professionally run poker sites with the same brush as FTP, that GBT can save Full Tilt Poker and turn around this once great site, which had superb software and was appreciated by many thousands of players globally.
