Update on the Anti-Trust Lawsuit against WPTE
Most have probably heard about the lawsuit filed against WPTE by Howard Lederer, Andy Bloch, Annie Duke, Phil Gordon, Chris Ferguson, Greg Raymer, and Joseph Hachem.
Nothing has been heard about the lawsuit for weeks, but today, as reported on PR Newswire, the players have filed for a motion which, if granted, would end the case quickly and without a trial, citing that the WPTE’s contract constitutes “per se” and “quick look” violations. If you are not familiar with the lawsuit, here is a summary of it:
From PR Newswire:
Specifically, the Plaintiffs seek a summary declaration by the Court that WPTE and the casinos which host WPT events have unlawfully conspired to force poker players to sign non-negotiable “releases” that require those players to grant WPTE the right to use their valuable names, likenesses, voices and images for zero compensation so that WPTE can exploit these rights to promote its own products and services. The Plaintiffs contend that the undisputed facts establish that WPTE and the casinos have agreed to boycott and exclude from WPT events any poker player who does not sign such a “release.” The Plaintiffs have also offered undisputed evidence that WPTE and the casinos are conspiring to restrict the number of poker tournaments in competition with the WPT by agreeing that the casinos cannot sponsor any televised non-WPT events. The Plaintiffs contend that these agreements constitute “per se” or “quick look” violations of federal antitrust laws. The “per se” and “quick look” tests apply to conduct which is so inherently anticompetitive that a court may summarily decide that such conduct violates U.S. antitrust laws without the need for full discovery or a trial.
My take on the case is that the poker players are right, even if I disagree with their true motives. The WPTE is a corporation and has people invested in their stock, so making a profit is of the utmost importance.
Poker News is reporting that the WPTE will lose 1.1 million dollars for the fourth quarter, which is an improvement from last year at this time when they reported a loss of 1.4 million. Total net earnings, however, was 7.8 million dollars, mostly due to the 10.2 million dollar sale of PokerTek stock. This news doesn’t make me confident that the WPT will remain profitable in the long run, especially if they can’t generate a profit from the Word Poker Tour television show, which one would think should be the main cog in their business model.
The WPTE’s earnings report makes it clear why the company has resorted to the practices mentioned above, not to mention the the lawsuit filed by Shana Hiatt in September 2006. My conclusion is fairly obvious, but the WPTE needs to make money to survive, and if they are not making a profit off the show, how can they afford to pay the players for the use of their likeness and image?
WPTE, WPT, WPTE lawsuit, WPTE earnings report
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