TMZ paid $165,000 for O.J. tape, The Smoking Gun says

That audio of O.J. Simpson hollering at sports memorabilia collectors in a Las Vegas hotel last year was worth $165,000 to TMZ.com, reports The Smoking Gun today. TMZ reportedly bought the tape from Thomas Riccio, a four-time felon who set up the confrontation with Simpson and recorded it, then called the gossip site.

From The Smoking Gun:

While he initially sought $2 million, Riccio settled for the six-figure payout, which is still likely the largest sum paid by a gossip site for a story. In its original report about the tape, TMZ stated that it had "obtained" the recordings, avoiding any mention that their procurement was secured by a $165,000 check delivered to Riccio's Los Angeles home.

Riccio signed a TMZ contract containing a confidentiality clause barring him from disclosing details of the financial transaction, presumably so that future "sources" don't use the $165,000 payoff as a template in their negotiations with the site, which is co-owned by Time Warner's AOL and Telepictures units. TMZ is apparently the only Time Warner entity that is allowed to pay for stories or tips (that corporate roster includes CNN, magazines like Time, People, and Sports Illustrated, and small outfits like The Smoking Gun).

[snip]

Riccio, who declined to comment about his deal with TMZ, appears to have fallen out of the site's favor, judging by a February 28 "exclusive" excoriating him for cashing in on Simpson's legal troubles. Riccio, the site reported, has written "Busted," a "sleaze-a-zoid account" of the Las Vegas incident. Riccio's tome, the cover of which you'll find at right, goes on sale next month.

TSG also has some of the FBI affidavit in the Eliot Spitzer case.