he original contractual agreement, which specified a revenue share arrangement between the companies, had been amended in May 2007 to provide fixed monthly fees to GIG. Although the original agreement expired on November 1, 2007, both companies continued to operate under the amended terms while negotiating an extension.
The new agreement extension specifies that GIG’s monthly revenue would be determined by the larger of a revenue share percentage and a new minimum monthly guarantee. This combination of revenue share coupled with a minimum monthly guarantee will result in significantly higher monthly fees to GIG than the current agreement. This new financial agreement, when signed, will be made effective retroactively to February 1, 2008.
The companies expect the formal extension to be signed in the next few weeks. It is also anticipated that the new agreement will be renegotiated and extended again, prior to the new professional football season that starts in August 2008.
Bernard Albanese, the company’s CEO, stated, "We are very pleased with this agreement to extend the contract. It shows that Sportingbet is pleased with the growth in revenue from the service we’ve provided them during the last year, and that they are optimistic regarding its future growth. In addition, the extension will provide the company with a much-needed increased level of stable cash flow. It is expected that the anticipated cash receipts will allow GIG to be cash flow positive on a go-forward basis. This is the first time that GIG has been able to achieve this milestone."