WPT now on Game Show Network

by Amy Calistri

When World Poker Tour Enterprises, Inc.
first teamed up with the Travel Channel in
2003 to air the first season of WPT events,
they became part of the fuel that spurred
poker's meteoric growth. But today, WPTE
officially announced that their alliance with
the Travel Channel has officially ended.

In a SEC filing dated April 5, 2007, WPTE
announced that the Travel Channel had
not exercised its option for season six.
But viewers will not be deprived of seeing
the upcoming season as WPTE also
announced that they had reached a deal
with GSN for season six, which also includes
an additional two season option.

During poker's boom years, the Travel
Channel had been eager to exercise its
WPT option, often beating the deadline.
This year, however, sources speculated
that the Travel Channel might pass as the
March 10, 2007 exercise deadline was
extended to April 1, 2007. Also complicating
this year's time line was the recent acquisition
of the Travel Channel by Cox Communications,
announced March 29, 2007. With season six
fast approaching and a more saturated poker
television market, the WPT's leverage to ink
a new deal was called into question.

Today the question was answered as,
according to the SEC filing, GSN agreed to
pay $300,000 per episode for the upcoming
season's twenty-three episodes. As part of
the deal, GSN has also committed to spend
at least $3,000,000 in marketing costs for
each season.

While the per episode fee is somewhat
lower than past years, it demonstrates that
the WPT brand still commands a premium
in a market that became populated with
time buys and faced flagging online poker
advertising revenue.
Also, the deal, according to the SEC filing,
has additional upside revenue potential for
WPTE. Should GSN exercise their option
after season six, they will pay a 5% increase
per episode for each future season. WPTE
also has the opportunity to augment their
per episode fees with a bonus clause
should they exceed pre-agreed to Nielsen
ratings for the season.

It's an obvious fit for both companies;
something that becomes even more
obvious when listening to Steve Lipscomb,
CEO of WPTE and Rich Cronin, President
and CEO of GSN, enthusiastically discuss
their alliance, as we did today. It is only then
that you realize that this is less of a network
deal and more about a partnership based
on a shared vision and philosophy.

Lipscomb described their relationship as
an "industry changing event," and affirmed
that, together, GSN and WPTE were
committed to "both foster and grow our
community." He applauded the ability and
care GSN demonstrated, introducing a
quality and differentiated product like
High Stakes Poker into a competitive market.
As Lipscomb described it, GSN was not
just a network that would air the WPT,
they represented an environment
where quality poker programming was
both appreciated and nurtured. Cronin, too,
saw the alliance as a growth opportunity,
describing the union as "a classic case of
where 1+1 = 3." Since 2004, when GSN
first ventured into casino programming,
they have been actively seeking quality
program partners to complement their space.
To Cronin, GSN's deal with WPTE
represents the "sweet spot; a premier
franchise at the ideal moment."

The "sweet spot" for poker viewers is
going to be Monday nights, when both
High Stakes Poker and the WPT
will air on GSN.