An Australian wagering firm, BetMakers, has defended a $15 million payment to Matthew Tripp, a seasoned industry leader. The Australian Securities Exchange (ASX) raised concerns about whether the agreement violated listing regulations.
Tripp was recruited in 2021 to provide guidance to BetMakers on their B2B betting strategy and to acquire $25 million worth of company stock. Earlier this year, BetMakers declared a betting venture with News Corp and Tekkorp, which later became known as Betr.
BetMakers disclosed that they extended a three-year escrow arrangement for 35 million shares and that Tripp would receive a $15 million cash payment.
At BetMakers’ annual general meeting, the ASX voiced concerns about the $15 million payment. CEO Todd Buckingham clarified that the payment was partially attributed to Tripp’s personal assistance to him.
The ASX’s guidelines indicate that if there are “significant changes” to previously agreed-upon transaction terms, the ASX may require the company to seek fresh approval from its shareholders.
The Australian Securities Market (ASM) has stringent regulations concerning the disclosure of data that could influence a firm’s stock value. They stipulate that if an event could have a substantial impact on the price, the company must inform the ASM immediately.
BetMakers, a business that incurred a loss of $17 million in the fiscal year 2020-21, stated that a payment of $15 million would be deemed significant.
The ASM inquired about a payment made to Matthew Tripp and questioned BetMakers if they considered it material. BetMakers responded in the negative, asserting that it was a business expenditure and should be distributed over a decade, resulting in an annual cost of only $1.5 million.
The firm also highlighted that its earnings could rise considerably in the next decade due to the Betr accord (Tripp’s remuneration was publicized as part of the accord).
BetMakers investors endorsed the accord and inquired if it was permissible to modify the accord to allow for a cash disbursement.
BetMakers stated that the alteration “would not change or decrease” the initial arrangement, as Tripp would still receive the originally agreed upon performance rights after the extended escrow period.
BetMakers stated: “The modifications to the escrow accord, notably Tripp’s remuneration, did not provide Tripp with extra remuneration in exchange for services under the consulting accord, nor did it try to compensate Tripp for pursuing strategic transactions.” “Instead, the transactions made under the amended escrow accord were to motivate Tripp to secure the Betr accord for the firm.”
BetMakers also refuted claims that it had received a $15 million payment due to the new escrow arrangement with shares. Instead, the company said it “has always placed Tripp’s remuneration in the context of the Betr accord.”
Buckingham’s statement at the BetMakers AGM
BetMakers also said that the description of Buckingham’s ASX comments “inaccurately reflects Todd Buckingham’s statements at the annual general meeting and misinterprets the business rationale behind Tripp’s compensation.”
Mr. Buckingham’s remarks regarding Matt Tripp’s assistance were provided in answer to a separate inquiry about their continuous association, not concerning the compensation given to Tripp. He aimed to demonstrate the strength of their bond and that Tripp consistently acts in the company’s best interests.
They reiterated that the Betr agreement is the justification for the payment.
Lastly, BetMakers stated that Tripp will not receive any further financial compensation for his guidance.
