Four-time felon and O.J. Simpson setter-upper Thomas Riccio supposedly scored a cool $165,000 from TMZ.com in September in exchange for the audio tape of Simpson screaming at sports memorabilia collectors during that infamous spell in Las Vegas.

“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,” reports The Smoking Gun, which, like TMZ, is owned by Time Warner. “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).”

Heh. People doesn’t pay? Cute.

TMZ has previously denied to us that they ever pay for tips, but it is common practice to pay “license fees” for photos, videos, and, apparently, audio tapes. Between paying for baby photos and reimbursing its subjects for “location fees,” how else do you think Time Warner subsidiaries get scoops through their accountants’ books?