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PArdon me if I end up repeating what has been stated in this thread (or on other threads) but i’ve worked through them and I can’t see the following … so I’ll post my thoughts …
Here is how I see the landscape …
ONE
Empire do not have the rights to 100% of the profits of their customers – as between 25%-40% of profits from Empire customers will go to the existing affiliates (depending on commission levels).TWO
Therefore any negotiation to purchase Empire and it’s customers needs to be mindful that only 60-75% of the revenue of these customers is for the new owner to keep.THREE
The exisiting affiliate contracts bind those customers to the affiliate as surely as they bind the customers to Empire. Party cannot buy 100% of the rights – as Empire do not have 100% of the rights to sell.FOUR
The rest of the future profits from these customers (25%-40%) must continue to be dispersed back to the affiliates according to the existing terms in the existing contracts.
The upshot is that the purchase price stated is only for EMpires share of those customers. If PartyGaming do not want to continue on with those existing affiliate agreements then they must ALSO buy out those affiliates (unlikely) … or honour the contracts.That seems to be common sense to me … but whether the US legal system values common sense is debateable …
Comments ?
:popcorn:
