Originally Posted by giftofgab
why are you only worried about the US players getting paid what about the ROW players
I don't think it is fair to conclude from his comments that Barry doesn't care about the ROW players. He is concerned that by paying all of his debt to GBT, who will only be paying ROW players, that US players will not be getting their portion of what he owes.
FWIW, I think he may be mistaken in this analysis. If he and the other pros, who between them owe between $10M and $20M, fail to pay FTP for the debt, GBT, who is buying FTP assets, are justified in asking for a price reduction equal to the amount of debt not paid. If they don't get it they are justified in walking away from the deal.
That price reduction comes out of what might have been available to pay US players. I would presume that the way Barry is looking at it, he would prefer to pay to the DoJ a portion of his debt equal to the US player portion of all outstanding balances, and pay the rest of the debt to GBT. Even if Barry pays the whole debt to the DoJ, as long as Tapie gets a corresponding price reduction, the same amount of money will be available to the DoJ.
Essentially, as long as the deal goes through, with Tapie paying $80M minus whatever debt pros don't pay, the DoJ will get the same amount of money. So, there appears to be no benefit to US players to Barry and other pros holding out.
However, there is a risk to US players if enough pros hold out and GBT cannnot get an offsetting price reduction. If GBT pulls out of the deal, the DoJ will be the only source of compensation for all player debt - not just US player debt, and they will have less money in their coffers. They won't have the $80M from GBT. They might collect the $40M in the foreign account that the DoJ seems willng to turn over to GBT rather than to litigate to gain forfeiture of it. They might gain some or all of the $10-$20M of pro debt that GBT couldn't get. At best the DoJ will still be $20M short of what they'd have if the deal went through. At worst they'd be $80M short.
If the deal falls through, GBT won't be paying up to $150M for ROW player accounts. If the DoJ is offering remission, ROW players would qualify just as much as US players, (and possibly more - it wasn't illegal for FTP to take their money). This leaves the DoJ on the hook for twice the player debt with $20-$80M less available to cover it. That would seem to cut funds available to US players by more than half. If the deal falls through, US players will only get paid in full if the DoJ has enough money to cover all US and ROW balances without GBT's $20-$80M. I don't think the seized funds add up to this much.
I doubt that Barry's $400K is enough to kill the deal. Perhaps no one player's debt will kill the deal. But the sum total of debt, if not realized by GBT through payment or price reduction, would seem to be enough to kill the deal, and if the deal dies because the pros refuse to pay GBT and GBT isn't compensated for the lost asset, then US players and ROW player both lose. If this happens, every pro who refused to pay will share responsblity for the resulting player losses.
Having said all that, as long as GBT can get a price reduction for unpaid debts, then there is a potential upside to US players in what Barry is doing. Money that the DoJ gets from GBT for FTP assets is not guaranteed to be available to compensate players. Money paid into a fund set up for compensating US players is pretty well guaranteed to go to players.
It would seem the best solution for all parites involved (except perhaps the DoJ's coffers) would be for the DoJ to allow pros who owe money to FTP to make a contribution of the amount owing to a player compensation fund, in return for discharge for the debt, and to allow GBT to reduce the price they pay by the amount of the pros' debts. IDK if this is legal, but if it is, it would seem to satisfy all the stated concerns.