Two Weeks Later; The Fallout

(See Also: Untitled 2005 Rants)

Note: This was originally posted (No Longer Available).

Additional information on the 'schenanigans' at OTFCC:

At the time of the convention, this information would have been considered out-of-context for most convention-goers, as they had not experienced these issues first-hand. As always, if you feel you read an opinion here, you are mistaken. This is a reporting of the facts at hand. Apparently, most of this information has now leaked out to the fanbase anyways, so I consider this more an organisation of the material(with maybe 10% new added for flavor).

1) As quoted in a previous posting (see below) regarding the requests for refunds for the convention, comics, figures, etc: it was known by members of 3h as early as May(presumably sooner) that the available funds were depleted. Whether they were already planning on bouncing payments at this time, or were praying for more income, it is unknown; however, they were already in the planning stages, as people were being told that their refunds were going to be processed, 'about two weeks after the event'. The reason given was that they were busy,'gearing up for the convention.' However, some have stated that it takes all of 45 seconds to write a check, and 2 minutes to make a change in the database. Considering there is only one business that 3H does, this was seen by some as a delaying tactic.

2) As has now become common knowledge, those folks recieving refunds or payments from 3H in the form of checks have discovered that there are insufficient funds, ie, their payment checks 'bounced'. The first of these bounced checks was alleged to have been payment for Dan Gilvezan, the voice of Bumblebee. See previous posting with regards to other problems of this nature at the convention. Many threads now list this information (presumably posted originally by those whose checks have bounced). It is noted that some people who had a bounce claimed that they had a refund in less than 8 hours(plus handling fees) while others have recieved no monies at all. This may be correlated to larger vs smaller amounts, or fan vs foe. Unknown variable at this time.

3) Insomuch as was overheard in a conversation between Glen and a Hasbro rep during otfcc, it was already common knowledge that there would be 'fallout' approximately two weeks after the convention, which people are now experiencing. Fallout, in this context, refers to the lack of available funds, as well as the missing toy exclusive. During the course of this conversation, the topic of the skywarp figure was brought up, and details for quicker lisencing via Hasbro was proposed(for those wondering, while 3H might not get the convention lisence after this year, they are still in possession of the fanclub lisence for another two years. It is presumed that they will be shifting their focus accordingly). In a related vein, it has been previously reported by others that Glen has already been told that his lisence will not be renewed. There have even been rumors that existing lisences will be stripped. Whether the last is true or not(I presume 'not'), it has no impact on the existing problems with 1H. More on that below.

4) Sentinal Maximus, reported as being paid for and available, requiring only the assembly of packaging and mail-out to fans 'two weeks after the convention', has been apparently misrepresented. As it turns out, the toy has not yet even been recieved by 3H; whether this is due to non-payment, or an actual factory delay has not been revealed (though I presume some will make assumptions on this one, given the recent track record). It is also reported that the packaging has not even been ordered yet, which apparently jives with the observation by experts that the available vendor's sample of the figure was placed within a one-off custom package(ie, noting the uneven scoring and folds on the package, versus the mass-produced look of the Megazarak box). In his defense, Glen was quoted as saying that 'they can't really expect me to assemble 1100 figures and get them mailed out in two weeks.' However, again, it would have been best to *say* as much when questioned about it publically, versus insisting on the two week timeframe. Again, it gives the appearance of saying one thing while planning to do another. Continued...

5) Reporting on the plates; as mentioned previously, and restated again by 1H at the panel, the plates were delayed because of pending approval from Hasbro. However, when asked, Hasbro was quoted as saying that Glen already had approval, and that they didn't appreciate being named in something that wasn't their fault. The obvious implication here is that they are not, in point of fact, produced yet. The response? Glen was quoted as saying, 'they paid for a dinner. The plate was something extra. I'm not legally obligated to give them anything.' It is unknown what the status of the plates will be at this point. A note: even if the above quote is accepted as legal truth, there is the matter of people ordering 'extra' dinner plates outside of the dinner itself. That brings the problem once again into a product liability issue.

6) The non-payment for the Hyatt has already been discussed. Glen didn't have the funds to pay for the entire bill; he offered them a payment plan, which they refused, as the contract called for full payment upon completion of the event. When questioned, the Hyatt responded that they are considering their legal options. One presumes that they will pursue 3H via a collection agency initially, which will have one of two outcomes(either 1H will get their smaller payment plan via the collection agency, or they will refuse to pay the bill, and become insolvent as a corporation. Notes continue). It is still under investigation as to whether or not the bill for this year's hall rental has been payed yet. That will play a factor in whether or not the company remains active, as two large unpaid bills of that nature will negatively affect future earnings.

7) The Unicron statue: As has been mentioned in previous postings, some trace the beginnings of the 'problem' to 3H when Glen and the Hartmans were still partners. Some say the blame is to be shared with all parties involved, while others say that Glen was solely responsible, as he was in-charge of the business aspect at this point. One argument is that the Hartmans should have been more involved, and that Glen had to do all the work, which is why he arranged to take the company away from his partners. Another argument is that Glen, being a control freak and sensing money, was planning a coup so that he could have more control. The truth varies, and is probably in the middle of that. One observation: Glen, in-charge of the business aspect, didn't pay for the bulk of the Hard Hero statues ordered. Unknown variable as to why, presumed preorders fell short. Hard Hero dissolved the contract and arranged to sell via other vendors. At this time, it is presumed that this was the first instance of 'missing funds' mentioned by many people in the Botcon/3H postings from that era.

8) Payment to previous parties: it is reported that when 3H became 1H(ie, Glen kicked Jon and Karl out of the company) they were to be paid a specified sum (4 to 5 figures) as a buyout; in addition, they would be flown in to the conventions, have two sets of exclusives provided to them, and be mentioned as the 'founders' of Botcon. In addition, they would act as consultants; Glen would run things past them for their input. In-exchange, the Hartmans would allow the lease of the name 'Botcon', among other considerations. Since the sum of money owed the Hartmans went unpaid(and they were not contacted at any point as consultants for...and their input was ignored) the lease agreement never came to fruition, and thus there was a last-minute name-change to OTFCC.

These are the facts as have been reported by various parties, and confirmed by individuals involved. Taking these and several other points into consideration, it becomes obvious that a pattern has emerged. Whether or not you are for or against Glen (or Jon and Karl), a rational analysis of the facts would indicate that it might be a good time to... brace for further disappointment. It would appear that this ride isn't over yet.It has been stated that this is all that 1H (Glen) does for a living(organise the convention). A 'salary' is drawn from the business account. When funds are depleted, a new program is put in-place in order to acquire more money. For example; let's say 1H collects money for dinner plates, then draws a salary for living expenses (or if you prefer, for a divorce and diapers). The money is now gone, but plates still need to be made. Therefore, a new program is put into motion; collecting money for, say a new product or convention. A person making good decisions would then use skimmings from *that* money to produce the previous product, thus honoring the original obligation. However, 1H has apparently had very few 'good' business decisions over the last couple of years. He's still behind. And it looks as though he may never get caught up. A shame, really.

Glen is not, as some have portrayed, a victim of circumstances, but in a mess of his own making. While he may have started out with the best of intentions, things have gotten to the point where it may be easier to bail out. I do not believe he will; I consider him a man that will try his best to honor his obligations. Think about it: 1H has a responsibility to his 'customers.' He has said that, 'it's all about you, the fans'. A person who truly had,'the love', and who made good business decisions would not continue to draw an exorbitant salary at the expense of his company and his customer base, right?

How exorbitant? Recent estimates put the monies collected from the convention this year at almost a quarter-million dollars. You read that right; over $200,000. The hall cost $23,000, the toys cost anywhere from $20,000 to $50,000 (depending on which toys were fully paid for; we can only confirm MegaZarak). Even subtracting a $36k x3 salary for three other people (1)Amy, his girlfriend and second-in-command of otfcc; 2)Malin for PR, and 3) the newly hired accounts guy) and the 23K for the hall(as well as 1K for plane tickets, event-specific), you are left with almost $60,000. It is no wonder people are asking, 'Where's all the money going?' It is presumed to be going to 1H's salary. You are of-course encouraged to play with the numbers any way you like(reducing salaries, increase the costs of toys), but if anyone comes forward in the future with grossly overestimated prices on the toys, you will be able to contact the company (Has/Tak) directly to get exact price quotes, and compare them with what you are told. Remember, this is a breakdown of the monies collected just for this year. Otfcc 2003, it is said, had even more money collected, when you add in fanclub registrations, comic book pre-subscriptions, etc. It has been said that all of this is, 'none of our business', but others say 'come on, this is our money. We have a right to know how it's being spent, especially since our product is not being delivered. What are you trying to hide?'

So what does all this mean? Apparently, the negative view is this: that 1H is siphoning money earmarked for business expenses into personal assets, via salaries, pseudo 'business' expenses, and so forth. Apparently, there are a couple of years' worth of monies unaccounted for. 1H knows this doesn't look good, so they will 'invent' a paper trail. The hiring of the accounts guy is to 'cook the books' for when the eventual investigation takes place. As stated previously, the PR fellow was hired to handle the populace; keep everyone stalled with nice words until the transition is complete, and no-one's ass is on the line(for those wondering, he also makes an excellent spy for the fandom). The bottom line, from folks who've had enough, is this: 'you're being taken for a ride. I can't believe you're falling for it.' The obvious conclusion, for those who are not on the same side as Glen, ie the 'Glen Bashers': encourage all those who have reason to believe that Glen/1H has committed felony embezzlement, and owes them money...to make arrangements to organise under an attorney *now* in preperation for a class-action lawsuit. If you wait until the other shoe drops, then you have no one to blame but yourselves. After all, the product you're hoping for? Not gonna happen. The skywarp PVC, and one more magazine is the best anyone is going to get. And that's only if 1H keeps that lisence. The plates and toys are a wash.

If, however, you are firmly in the 1H camp, the obvious conclusion is: 'let the fools make their lists, rant their rants, and spend their money on an attorney. Glen will deliver on all his promises, and that will be vindication enough for me.'

And that's it in a nutshell. Time will tell which part of the fandom proves correct. Note that I don't say, 'which part of the fandom wins.' There are no winners or losers this time around; only losers. We've all lost, because this issue has divided us. For good or for ill, the fandom is going thru another change. Imagine that. A group of people, who like changeforms, going thru a change themselves. It's the stuff of legend, folks. But in two years time, no one will remember. Or will they?

Report ends. Observational post, originally posted to att, follows...

As an observer of these events, it always facinates me to take note of human behavior. Does it seem like certain personality types favor one convention, while others favor a different one? I don't believe anyone has done the analysis, but the trend seems to be that if you look at the full gamut of transfan personality, you have...well, you'll have the same problems you have in politics :-) Your moderates in the middle of the issue, and everyone else varying degrees of left and right. Some jump from camp to camp based on the prevailing winds. This year (and part of next year) seems to be another focal point; another splitting of the fandom, I suppose.

People trend toward information that fits their worldview, while ignoring the rest. People...even people who hate all other people...form a clot of like-minded curmudgeons who rail with them against the rest of the world. Now more than ever, we're seeing this polarising effect; most people prefer either 3H or Botcon, and are not swayed from their positions. Let's pretend it's an even 45/45 split. The other 10% seem to be the moderates, or undecided if you prefer. That's where the swing votes will count. Of-course, others will argue on both sides that my percentages are skewed, that, "it's really blah blah blah." But that kinda proves the point, doesn't it? :-) And besides, who's really voting here? Hmmm...

This issue, like all other things, will eventually fade away into memory. At least, until the next crisis hits. Some people will leave the fandom, others will join, still others are not really affected at all...or so they think. Then there are those who will be disillusioned, those who will bear personal grudges, and those who will feel vindicated, at least to a varying degree...

Sometimes, it's a shame to watch this scene play over and over in the transfan community. It happens every few years. There will be a hero, there will be a villan, and the bulk of people will be supportive of one or the other. Irregardless of the available information, things will be...as they are.

The scenerio that is currently unfolding is already a foregone conclusion. We know what will happen. Me, I'm bracing for the onslaught of the 2006 toys :-) Because in the end, it's all about the toys...isn't it?

Interesting 2005 links:

Refund Checks Bounce (No Longer Available)

Toys in Hand, Toys Not in Hand (No Longer Available)

The Story of Skywarp, and 3H's Options (No Longer Available)

Missing Comics Again (No Longer Available)