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Ssb - the barry hearn gamble

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  • Ssb - the barry hearn gamble

    Barry Hearn is promising 11 televised tournaments plus 12 Pro Tour events each worth £10,000 to the winner and an increase in prize money of at least £1m next season.

    The new WPBSA chairman wants control of the game’s commercial rights in exchange, although these will revert back to the players if he fails to hit his targets.

    In a bullish, at times confrontational letter to the players, Hearn has set out his master plan to revive snooker’s fortunes.

    At the centrepiece of this is the Pro Tour which will be open to all 96 players on the main tour.

    It will include some established events, including the Paul Hunter Classic in Germany, and new ones and have its own order of merit. TV coverage and internet streaming of some events is a possibility.

    The top 24 at the end of the season will go into a televised Players Championship worth £60,000 to the winner.

    The players, with justification, have complained of not having enough tournaments to play in. The finances are not there to stage legions more ranking events. If they were, the previous WPBSA administration would have done it.

    But a Pro Tour along the lines of the successful PDC darts model would provide significantly increased playing opportunities and the chance to earn more money.

    These new events may also, in time, be built up into bigger ranking tournaments, just as many of Hearn’s overseas tournaments for Matchroom in places like China, Thailand and Dubai in the 1980s were.

    However, one of the major differences between the Hearn chairmanship and those of the past is that he believes the association should reward achievement and not mediocrity. He has told the players as much.

    As Hearn sees it, the players deserve only one thing: an opportunity. What they make of this is up to them but if they fail to make the grade they should do something else.

    This will be hard to hear for some players, although in reality most of them will be no worse off than before. The pro circuit will still consist of 96 players. The top 64 will still be safe and those relegated will have an immediate chance to re-qualify through a new Cue School held after the 2011 Betfred.com World Championship.

    New tournaments include a ranking event in Germany, a gloriously tacky one-frame shootout on Sky Sports which will have purists crying into their back issues of Snooker Scene, a World Seniors Championship and a World Open, featuring the 96 main tour players and amateurs, which will replace the Grand Prix.

    This is because the BBC has stated they will drop the Grand Prix in any new contract renewal. Hearn has therefore immediately instituted the World Open in the hope the BBC will be sufficiently impressed with it to take it in 2011, which would be the first year of their new contract.

    Hearn is not the sort to do things by committee. He likes to be in control and, as such, is proposing to purchase the game’s commercial rights for the nominal fee of £1. He will then issue share capital in this new company worth £500,000 and control 51% himself.

    Players will be able to purchase shares with priority given to those who have won most based on a points system taking into account tournament wins, meaning Stephen Hendry, Steve Davis, Ronnie O’Sullivan and John Higgins would have first chance to become shareholders.

    Prize money would rise from £3.5m to a minimum of £4.5m next season and by more in the years that follow. If it does not, the rights would be ceded back to the WPBSA.

    The new commercial body would pay an annual licence fee to finance the WPBSA’s rules and regulatory functions, still controlled by the players. Hearn describes this as a ‘win-win situation.’

    The Hearn plan includes support for the Snooker Players Association and a new ranking system that will change during the season rather than at the end of it.

    Not everyone will agree with all of it. Cost cutting has seen the end of CueZone – which was popular with many fans, although at some tournaments it was little more than a table in a foyer – and courtesy cars for the players.

    Some players lower down the rankings will fear for their own futures but, in reality, they aren’t any better off now. Snooker Scene’s own player columnist Jordan Brown spent in the region of £8,000 in expenses in his debut season and earned less than £1,000. Had he turned pro under the new Hearn plan he would have had the chance to play more, to earn more and to improve, possibly even keep his tour place if the results started to come his way.

    At its core, the Hearn plan is a major attempt to increase snooker’s profile, the players’ opportunities and end the stagnation in the qualifying system and ranking list. Even Hearn’s critics would be hard pushed to deny his enthusiasm and commitment to making it work.

    So will it work?

    Hearn is a great ideas man but some of the fine detail needs to be ironed out. Players should attempt to ascertain how all this will operate in practice and have the perfect chance to because, unusually for a WPBSA chairman, Hearn has given every player his mobile number and email address and invited them to contact him with any questions or concerns they have.

    But he will resign the WPBSA chairmanship if they reject his proposals in May, which would most likely sink the entire plan and deal a possibly fatal blow to snooker’s credibility with the broadcasters and sponsors he has been negotiating with.

    We’ve been here before. The Hearn plan shares many similarities with the Altium bid, which failed to attract enough player support in 2002.

    They were promising significant investment into the sport in exchange for its commercial rights. The players clung to the rights themselves, after which prize money fell dramatically and the number of tournaments on the circuit were reduced.

    Players should read Hearn’s plans and consider them carefully rather than asking their managers – or those who call themselves managers – what it says and what it means. If they have any queries, they should address them directly to Hearn instead of relying on rumour.

    Black propaganda was what did for Altium in the main, with talk of hidden agendas and ‘taking over the game,’ as if the game belongs to anyone in the first place.

    On May 5, the players will get their chance to decide their own futures – again.

    They should ask themselves three simple questions:

    1) Do we really want to play more?

    If they do, as they have always said, then the Hearn plan is a no-brainer.

    2) Why should we care who runs the game’s commercial rights?

    Surely players should concentrate on playing and earning money from their sport. As long as the money is going up, why does it matter who is in charge?

    3) What is the alternative?

    Most of them aren’t happy with the way the game has been the last few years. Supporting Hearn may be a gamble but turning down this chance to reinvigorate the sport is a bigger one.


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  • #2
    So Barry Hearn's plan for the development of the game involves a new company being set up to acquire World Snooker for £1, including its £3m bank balance.

    The new company is to have Matchroom as its majority shareholder (51%), with the existing Top 64 main tour players having options on 25% and 'commercial partners' having 24%.

    The new company would acquire all commercial rights to the game.

    In return Hearn is guaranteeing a 5% annual growth in total prize funds for the six year period 2010/11 to 2015/16, with further six year periods to be negotiated. That's 5% of original 2009/10 figure, not compound growth, according to the illustration given which shows an increase of £225kpa.

    The existing £3m bank balance would ensure the growth over the three coming seasons, but further growth would be dependent on the company securing new deals and successfully exploiting the game's potential. Failure to meet the targets would mean a revocation of the company's licence from WPBSA, and the commercial rights would revert to WPBSA.

    These outline plans, which are to be discussed and voted upon at a players meeting on 5th May (to which players are encouraged to take a guest, manager, solicitor or advisor) raise a number of issues on first reading:

    • The players’ shares can be sold on, so what’s to stop Matchroom acquiring all of those shares eventually, if they make a sensible offer to the players? Indeed Matchroom could presumably also acquire the other 24% initially to be allocated to ‘commercial partners’, and eventually become 100% owner of the game’s commercial rights. Even with 51% Hearn can effectively do as he likes.
    • The plan makes no mention of issue of further new shares being issued to future Top 64 players. If the current Top 64 take up their shares and hang on to them, in years to come they’ll end up by potentially benefitting substantially from a game they are no longer involved in.
    • Hearn confirms his intention to create more events worldwide, but at the same time is only *guaranteeing* an increase in the overall prize pot. Potentially that could mean the prize pot being spread more thinly over the larger number of events.
    • The plans make no mention of a guaranteed proportion of additional revenues being added to the prize pot: what’s to stop that £225k minimum growth in the prize fund being paid from a £1m increased revenue, with Matchroom, the ‘commercial partners’ and current Top 64 laughing all the way to the bank with the other £775k?
    • Should the current plan be accepted Hearn will basically have total control over the structure of the professional game for the next six years. What’s to stop him completely changing that structure from 2011/12, by, for example, cutting the main tour to 32 players? Provided the prize pot increases per the guarantee, what could be done to prevent him going down an unwelcome path?

    Like the Chancellor’s Budget day speech, only the headlines catch the media attention, and a lot of the detail of the changes, and plenty more as well, comes from reading the small print. I’m sure that many of the issues raised above are adequately covered in the fine detail of the plan, but perhaps players ought to seek assurances that this is the case.

    Certainly the proposed calendar looks a lot fuller than previously, with a new ranking event in Germany and ranking points available from the Players Tour Championship. One can’t deny that Hearn is planning to provide more opportunities for professional players.

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