Welcome to big buisness.
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"Oh, you're wearing a tail and ears, you're a freak."
"No social change has ever come about without freaks. Einstein was a freak. Ben Franklin was a freak. Martin Luther King was a freak. ...be proud to be included in those ranks."
-2, The Ranting Gryphon -
Why blame SP?
Take out the emotion of business for a minute. Given what little information given on this thread, it looks like SP made a great deal. I'd guess the whole idea wasn't theirs to start with. I'd go back to the groups trying to fill-in for Dick Clark Productions.
Hey, they want to form a league. A league in which they get paid as well. The only way you can have a league, is to ensure you have teams at a determined minimum caliber to participate. I'd guess they went to SP and made them a deal they couldn't refuse. They bought/brought-in their needed teams. They are forcing the tournament industry in a new direction. Would you give credibility to a televised tournament if you knew some of the better teams weren't participating? Nope. So and so won only because XSV wasn't playing...or so forth.
Second, thing to look at...always the $$$. If you don't have $40 for paint, you don't play. That should be at a level in which most on this board can relate. If a monetary agreement was not in the least worked out, why again would the production guys be asking for so much money? They wouldn't be asking for the money if it wasn't there or if they didn't know it would be available. I don't necessarily agree with the second $800,000 hit, but that's what negotiation is all about. Ask for something and see what you can get.
Let's equate this to mid-major collegiate football. The idea is to get on TV as much as physically possible, even if it means operating in less-than-ideal situations or at a loss for a while. You have to get on TV to get recognized. You have to spend the time on TV to promote your team/sport. Those mid-major teams that get on TV usually do better than those that don't. Exposure rules.
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