Poker News / Short-Stacked Shamus / 30 September 2011 / Leave a Comment

After having its licenses to operate revoked by the Alderney Gambling Control Commission just one day ago, Full Tilt Poker today announced it has signed an agreement with Groupe Bernard Tapie to acquire the site and its assets. The statement notes that the acquisition would entail the repayment of players worldwide, but also is contingent upon the site's current legal troubles with the U.S. Department of Justice being satisfactorily resolved.

The short press release -- like earlier statements from the beleaguered online poker site delivered as an "exclusive" by Full Tilt Poker to the affiliate-site PokerStrategy.com -- reports that Laurent Tapie, son of the French entrepreneur and Managing Director of "Groupe Bernard Tapie," signed an agreement with FTP "to acquire the company and all of its associated assets."

The news came somewhat unexpectedly, particularly given the fact that it was just yesterday that the site had stated the AGCC's revoking of its licenses "makes it more difficult to execute the sale of the company and hence repay its players."

Today's statement by FTP goes on to note that the agreement "includes the repayment of Full Tilt Poker's world-wide players in full," yet is also "subject to several conditions," including "a favorable resolution with the United States Department of Justice," with whom discussions "will begin immediately."

There is no mention in the release of the amount Groupe Bernard Tapie is paying to acquire the company.

Finding Ways to Repay Players

In an interview with iGaming France, Laurent Tapie said his company has the funds with which to repay players, but that his company "want[s] to find ways where we don't have to put in all the money and will be talking to the US Department of Justice next week."

One subject of those talks will no doubt be the considerable amount of money the U.S. Department of Justice has seized from accounts belonging to Full Tilt Poker and its associated companies.

When the Alderney Gambling Control Commission revoked FTP's licenses to operate yesterday, it explained in its report the rationale behind its decision. There it was noted that "individual seizures made by the Department of Justice during the period 28th June 2007 to 20th June 2011... amount[ed] to a cumulative total of approximately $331 million US Dollars." FTP's failure to report this amount accurately to the AGCC was one of the many reasons why the commission decided to revoke the site's licenses.

While it is unknown exactly how much players are owed by Full Tilt Poker, some have estimated the amount exceeds $300 million.

January 2012 Relaunch?

The U.S. Department of Justice has not commented as yet on today's acquisition agreement. However, yesterday's statement by the DOJ alluded to its efforts to "examine the books and records of Full Tilt Poker" while assessing the possibility of the return of players' funds.

"The return of forfeited funds to victims of the alleged fraud may be possible," said the DOJ, "but will depend on several factors, including the successful conclusion of the litigation, the amount of funds seized and ordered forfeited by the court, and the compliance with other procedures the Department of Justice may eventually establish regarding the return of forfeited funds to victims who lost money as a result of the alleged fraudulent conflict."

In other words -- as some are already beginning to speculate -- such "other procedures" could feasibly involve facilitating the transfer of funds from seized accounts to the new owners and eventually back to the players. But this is obviously just speculation.

Laurent Tapie went on to indicate the new group's intention to keep the Full Tilt Poker name as well as restart the site using its current software. "It's a well-known brand and the technology is widely recognized as being possibly the best in the industry," Tapie told iGaming France. While acknowledging there was much to be done, he expressed the optimistic hope that the site would be back online by January 2012.

The New York Times later reported that Barry Boss, a lawyer representing Full Tilt Poker, had "stressed that the agreement announced on Friday was merely a prelude to a formal acquisition" until the site's legal matters could be resolved. However, Boss was also quoted saying he believed the agreement to be "a significant development and one that definitely gives a renewed sense of optimism that the players will get paid."

The Tarnished Tycoon

The statement by Full Tilt Poker alludes as well to Groupe Bernard Tapie's previous "experience in the salvation of financially distressed businesses... the most well-known being the sport equipment giant, Adidas."

However, details regarding Tapie's involvement with Adidas -- as well as other facets of the French tycoon's controversial story -- provide less cause for optimism than is implied FTP's statement.

In 1989, Tapie purchased the sportswear company with money borrowed from the French bank Crédit Lyonnais. By 1992, Tapie found himself unable to pay interest on the loan, and thus had the bank sell the company which it did in early 1993 for a higher price than Tapie owed.

Tapie subsequently sued Crédit Lyonnais over improprieties with the Adidas sale, and ultimately was awarded a sum equaling close to $450 million.

Tapie's story also includes his having been convicted of having bribed players on his Olympique de Marseille soccer club to throw one of its matches against Valenciennes in 1993. Tapie was eventually sentenced to two years in a Parisian prison, of which served six months in 1997. Tapie has additionally been prosecuted for tax fraud.

"One Time!"

All of which leaves players with funds still tied up on Full Tilt Poker unsure how to react to today's news.

"Hold one time!" tweeted pro player Josh Brikis in response to the news, as though the acquisition agreement were like an all-in preflop shove and there were still community cards to come.

It just so happens the name "Tapie" sounds like the French word tapis -- the word used by French players when declaring themselves "all in."

Hard to know for sure where things stand at present, not to mention what will happen next. However, for players seeking the return of funds it probably feels less like a "hold" is in order. Rather, the money seems to have gone in bad... and now is time for a suckout.

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