Quoted from Pinballs:Leonard Abess is Chairman and Executive Officer of ThinkLab Ventures based in Miami, Florida and is the former majority owner of City National Bank of Florida, which he sold in 2008 for $927m. He was voted Reader's Digest's America's Top Boss after using $60m of the proceeds to give bonuses to all of the 399 staff at the bank.
ThinkLab Ventures, LLC clearly made the "investment" in JJP. The entity was formed in September of 2010.
Giving about 6 1/2% of the overall proceeds as bonuses to all of the 399 staff at the bank was a fantastic thing to do. It's done every day, in all corners of the small business world. It's called profit sharing, I give 10%.
Small business people value, or should value, the people that helped those at the top get there. I'm sure they also had a generous 401k matching program and deferred comp/pension plan.
So with the remaining $867 million it appears Mr. Abess has decided to fund various ventures and employ some of the former bank employees, another great thing.
Putting capital to work and creating jobs versus just sitting and watching your pile grow.
Anyone, and especially a banker by trade, would never makes an "investment" or "loan" as a "write off", that's naive. ThinkLabs isn't a "non profit" 501c3.
They want a return on capital and the huge BENEFIT of their investment is that it hopefully will perpetuate jobs at JJP, create more jobs in the future, and help JJP turn the corner and make it a long term great company.
The guy likes pinball, but Think Labs must see the pathway to success with JJP, they aren't in business to fund failures or generate "write offs". Success and more jobs.
Just like in all corners of the small business world, many fail, some succeed, so many variables determine the outcomes. In this case of the "investment" in JJP, its based primarily on the MERITS and the opportunity that these guys see in JJP and pinball.
And IF they fail, sure they get a "write off", so what, against 100 million in profits/interest each year?
Bottom line its GREAT for JJP and pinball that somebody else with huge money believes in the story and the pathway to success.