retail news in context, analysis with attitude

by Kevin Coupe

This morning's Eye-Opener comes compliments of an MNB reader who took notice of yesterday's Sports Desk entry taking note of the controversial split decision on Saturday night when Timothy Bradley defeated Manny Pacquiao in a WBO world welterweight title fight in Las Vegas.

This reader sent me a blog posting from the Paddy Power online betting service in Ireland, which apparently felt - like a lot of people- that Pacquiao got robbed.

And so, Paddy Power instituted something called a "Justice Payout," saying that "if you had placed a bet on Manny to win in a pre-fight outright or on points, that money is now back in your account. We Hear You!"

In other words, Paddy Power was willing to give back all the money that people lost betting on Pacquiao as well as paying off the people who bet on Bradley.

I'd be willing to bet that there are not a lot of bookies that would make such a move. But clearly the folks at Paddy Power thought that it would be good for business in the long-term, not to mention good for its credibility, to make such a money-losing move. I cannot pretend to know whether this makes sense, but it certainly seems to me to be a great example of making long-range decisions that are good for business and not worrying (too much!) about the short-term.

That's an Eye-Opener.
KC's View: