From: [j--v] at [corsa.ucr.edu] (james vassilakos)
Newsgroups: rec.games.frp.advocacy
Subject: TSR/SPI Massacre
Date: 2 Feb 1995 16:33:46 GMT

Hi folks. I recently heard a story about how TSR canned SPI, and I'd
like to know if this is just net-gossip that should be ignored, or
if there is any truth to it. Please don't respond with personal
opinions, but if you have heard about this topic or can direct me
to a reasonably reliable source, then please do respond.

BTW, my source for this story doesn't wish to be named. Now here's
the story, verbatim...

   [j--v] at [cs.ucr.edu]

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	I should tell you that I wasn't a party to the original SPI 
event. In fact, I only knew as much as any gamer until about a year ago. 

	I was enlightened when the editor of the ancient (and now 
deceased) roleplaying APA _The Wild Hunt_ gave me some back issues from 
the time of the incident. One of the zines was by an acquaintance of mine 
who happens to be reasonably well-known in the field (at least in some 
circles). At the time he was in a position to know, and his story shocked 
and horrified me. 

	Unfortunately I can't find that issue. Here's the story, as best 
I remember it (and I remember it pretty well):

        The legend: SPI was the second most popular game company in the
hobby. They produced good RPG material, excellent boardgames, and
outstanding magazines. They were respected and liked by most people in the
industry. Unfortunately they took out a large loan. Somehow TSR managed to
take over that loan from the bank, and immediately foreclosed. SPI
couldn't pay, and so was terminated by TSR -- which then immediately
stopped production on all SPI products, except for a single small printing
every year to avoid losing the the trademarks and copyrights for non-use.
Rumor has it that three or four copies of DragonQuest appear in a small
store in North Dubuque, Idaho every Saint Swithen's Day. 8^>}

        The real story: SPI didn't take out a loan from a bank -- they
were negotiating with *TSR* for a loan (TSR was very solvent at that
time). TSR asked for proxy votes for a majority of SPI's stock before
agreeing to the deal, as a sign of "good faith" -- of course they wouldn't
actually *use* the proxies for anything. Heaven forbid. 

        SPI agreed (these were the innocent days before lawyers infested
gaming -- except for TSR, of course) and gave TSR the proxies. They were
very surprised to find TSR at their next stockholder's meeting. They were
even *more* surprised when TSR used the proxies to vote out every SPI
corporate officer and replace them with TSR people. 
        
        At this point TSR was run by Gary Gygax and two brothers named
Bloom (they were financial people, not gamers). One of the Bloom brothers
was made president of SPI. 

        SPI president Bloom announced that SPI was being moved (from New
York, I think) to Lake Geneva. Many of the original SPI folk quit. Some of
those who didn't were fired. 

        SPI President Bloom (who was still a corporate officer of TSR)
then negotiated with TSR corporate officer Bloom for a $400,000 loan.
Reportedly the terms were incredibly bad for SPI. If SPI missed a single
payment they forfeited everything -- all their game products, all their
copyrights and trademarks, and the right to publish all of their
award-winning magazines (including Ares). SPI would still *exist*, but it
would have no assets of any kind. However, SPI would retain all its debts
and liabilities. 

        This had the potential to affect a lot of gamers. SPI's magazines
were extremely popular, and many hundreds of people had paid from $300 to
$500 dollars for a lifetime subscription. Should SPI default, SPI would
lose the right to publish those magazines -- but would still be
responsible for those subscriptions. 

        One month after the agreement was signed by the brothers Bloom SPI
failed to make a payment. TSR lowered the boom. 

        TSR announced that SPI's magazines would no longer be published,
and that subscribers would have to talk to SPI for satisfaction (though
SPI was soon in the process of going bankrupt). However, out of the
generosity of its corporate heart TSR would offer SPI subscribers the
opportunity to subscribe to The Dragon for two years for the price of one.
SPI customers were (to put it mildly) not happy. 

	And that's what was in the zine I read, best as I can recall. If 
you find out any interesting information, I'd be interested in hearing 
about it...

	Good luck in your research.