Owners of the UFC Retain Control of Casino Empire in Bankruptcy Proceedings
by Kid Nate on Aug 11, 2010 4:02 PM EDT
in MMA News
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The Wall Street Journal reports:
The founding family of Las Vegas casino owner and operator Station Casinos Inc. appeared poised to remain in control of the company as a bankruptcy judge approved a determination that a group backed by the family had made the only qualified bid in an auction for part of the company.
While the plan still needs to be finalized in future hearings, the decision will most likely assure that brothers Frank and Lorenzo Fertitta , who made a fortune when they took the company their father founded private and loaded it with debt, will end up in control, with much of the company's $5.9 billion debt wiped out.
...
"The truth is we don't know that people are going to go back to the tables and slots like they used to, because we've never seen the casino market go through this type of recession where there was so much invested capital that was looking at the industry as if it was going to go on forever," said Keith Foley, a Moody's analyst who wrote a recent industry report expressing concern about the industry's prospects.
In the case of Station, the company assumed $3.3 billion in additional debt when Frank and Lorenzo Fertitta-the sons of the founder Frank Fertitta-took it private with Colony Capital for $8.8 billion in 2007, just as the markets were beginning to turn. The Fertitta family and other executives got $1.5 billion from the buyout and invested $900 million of that back into the company for a 24% stake.
MMA Payout comments:
If you combine the ~$120 million from the 10% stake in Zuffa with the company's rather aggressive dividend policy over the last few years, the Fertitta's have received more than enough cash to fund this Station retention bid without dipping into family money.
I've long asserted that the sale of 10% of the UFC was related to cash flow issues the Fertitta brothers were having related to the Station Casino bankruptcy.
It was clear before, but now it should be crystal clear and obvious that that was the case.
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I've missed most of whats going on here I think
Could someone break down why they are going through bankruptcy?
this paragraph explains it
In the case of Station, the company assumed $3.3 billion in additional debt when Frank and Lorenzo Fertitta-the sons of the founder Frank Fertitta-took it private with Colony Capital for $8.8 billion in 2007, just as the markets were beginning to turn. The Fertitta family and other executives got $1.5 billion from the buyout and invested $900 million of that back into the company for a 24% stake
Follow me on Twitter @KidNate
basically
the Fertittas took out a bunch of massive loans in the name of Station Casinos, kept $600 million for themselves, put the rest back into the casinos and then the economy went to shit and the casino couldn’t pay back the loans.
Follow me on Twitter @KidNate
Sadly this is more common and happening more often than it should with a lot larger dollar amounts.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
Yeah, the Aria/City Center project lost two billion dollars before it was even finished being built.
by ufc4 on Aug 11, 2010 5:07 PM EDT via mobile up reply actions
Goldman Sachs got fined 500 million and their stock went up 8% because it wasn’t a billion dollar fine. Lesson learned?
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:15 PM EDT up reply actions
I think it speaks for itself
and vindicates my assertion that the sale of 10% of the UFC was related to this issue. Am I wrong?
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it shows that they were in dire need of cash
to save their casino empire.
Follow me on Twitter @KidNate
They were? They were sitting on hundreds of millions of dollars beforehand, they didn’t need to sell part of the UFC to raise what was most likely a very low bid for what they just bought the company out of bankruptcy with. No one ever showed where they were strapped for cash at any time during this and as it turns out it seems that they are richer than ever now.
did you miss this part or ignore it?
If you combine the ~$120 million from the 10% stake in Zuffa with the company’s rather aggressive dividend policy over the last few years, the Fertitta’s have received more than enough cash to fund this Station retention bid without dipping into family money.
You are yourself endorsing and celebrating their pattern of using other people’s money to pay for their expenses. The sale of 10% of the UFC and the massive profit taking they’ve been doing allowed them to bail out the casinos without having to dip into their principle.
Follow me on Twitter @KidNate
The sell of the 10% of the UFC is Zuffa’s money not the Fertitta’s personal money. If Zuffa isn’t part of the ownership group that bought these assets then that money can’t be involved(that would be embezzlement even if they own both companies). Yes the Fertitta’s picked up some hefty dividends but those dividends are part of their “family money”, the MMApayout quote is full of crap (like so much that comes from them lately) of course they dipped into the family money(unless colony is also part of this then they probably just put it all up…yet again).
How is that full of crap? They brought up a great observation. No one really knows what’s going on behind the scenes? BTW, what has been crap from them lately?
by MMASuPreMaCy on Aug 11, 2010 4:56 PM EDT up reply actions
They brought up a irrelevant note about the Zuffa sell and couldn’t even figure out that dividend payments to the Fertitta family were part of the “family money”. That’s a pretty sad financial observation for a financial focused website.
I really haven’t cared much for them since Adam Swift left but that’s just a personal opinion of mine.
I get that they abused bankruptcy to abuse their former investors. I wonder where those investors are. Why they are not tearing the Fertitas up. Risk is part of the product (didn’t we all learn that one in the last few years). Surely people will ensure that the people selling the products can’t just pass on the risk right? Right?
Selling 10% of a hot brand like Zuffa to people you want to do business with seems like a smart move. I don’t think selling some of Zuffa was simply based on the need for money when they do have other options (family cash).
Frank and Lorenzo would take out 100m to 150m each on just salary every year from station… a 10% stake in Zuffa is sold and all of sudden it’s whoa! it must be for station. or The fertitta’s need mcmahons table scraps of 50 million to save station. It’s ridiculous.
The funds from the 10% sale of Zuffa or taking large distributions has nothing to do with what happened with station. You have to understand debt. It’s a way of selling your business without actually having to sell your business where you retain control and keep most of the upside while eliminating most of the downside.
The Fertitta’s use this strategy with every entity they control. Their wealth increases without having to sell or lose control of their assets while using house money to increase their wealth even more.
The abu dhabi deal is worth billions of dollars… and believe me the Fertitta’s would not have sold 10% if they could have enjoyed the same benefits and relationship with Abu Dhabi without that part included.
by mmalogic on Aug 11, 2010 5:07 PM EDT up reply actions 5 recs
People don’t realize that Zuffa just got paid and vouched for at the same time.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:19 PM EDT up reply actions
...yes
Editor - BloodyElbow.com - SBNation's mixed martial arts headquarters.
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by Brent Brookhouse on Aug 11, 2010 5:11 PM EDT up reply actions 3 recs
Basically you can think that the whole Station Casinos situation was fishy or dirty or whatever. But that doesn’t really mean that the 10% UFC sale had anything to do with it. logic kind of nailed it above but basically that 10% sale benefits them enormously down the road by the ties to money in Abu Dhabi. It’d have happened with or without the bankruptcy situation.
The Fertitas are clearly using some of those guly tactics that people hate in the American economy…but they’re not exactly operating unlike other business owners.
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MMA Editor - SBNation.com
by Brent Brookhouse on Aug 11, 2010 5:19 PM EDT up reply actions
Banned
When a true genius appears in the world, you may know him by this sign, that the dunces are in a confederacy against him. - Jonathan Swift
Contributor for WatchKalibRun.com
Still Subo at Fightlinker.com
by Derek Suboticki on Aug 11, 2010 7:38 PM EDT up reply actions
Imagine selling an asset at it’s peak and then keeping that asset by refunding less than 20% of what you sold it for.
He’s saying you sell something (here, “selling” would be taking out the loans), and you get to ultimately keep it by giving less than 20% of the money back. So, the Fertitta’s took out a ton of debt, made a ton of money, and by going through the bankruptcy proceedings managed to get the casinos out of those loan obligations for less than a fifth of what was owed. Like Logic said, the Fertitta’s made out like bandits.
by Jamie Penick on Aug 11, 2010 4:39 PM EDT up reply actions
real ethical
these guys are a microcosm of American business in the 21st Century
Follow me on Twitter @KidNate
I’d say they are much more successful than the majority of businesses in the last decade.
When a true genius appears in the world, you may know him by this sign, that the dunces are in a confederacy against him. - Jonathan Swift
Contributor for WatchKalibRun.com
Still Subo at Fightlinker.com
by Derek Suboticki on Aug 11, 2010 4:49 PM EDT up reply actions
the UFC part of their empire yes
the station casinos mothership, not so much.
Follow me on Twitter @KidNate
Still kicking and able to restructure without changing ownership? We can rattle off some pretty recognizable company names that would kill to be there.
When a true genius appears in the world, you may know him by this sign, that the dunces are in a confederacy against him. - Jonathan Swift
Contributor for WatchKalibRun.com
Still Subo at Fightlinker.com
by Derek Suboticki on Aug 11, 2010 4:51 PM EDT up reply actions
Who Me 4 months ago talking about this situation:
So the Fertitta’s are looking at selling 14 Casinos to themselves in order to get out of Bankruptcy…. Seriously does that sound like a family that is having a money crisis? If they could pull this off Fertitta gaming could end up owning most of what Station had before(and not just 25% of it) and have those casinos free and clear out of bankruptcy. These are cut throat billionaire moves not a couple of guys so desperate for 85million to save their company that they sold a piece of their other company and took the money away.
Will all that play out that way? Who knows there are other players at work here in this but it sure doesn’t sound like these guys are desperate or short on cash now does it? They seem to be wheeling and dealing and playing the system pretty hard and may come out of the bankruptcy richer than they were when it started.
Every time I read something about this bankruptcy I don’t see desperate Fertittas fighting to stay above water I see Fertittas playing the system to increase their own personal wealth and control. If somebody finds something that says the Fertittas are broke and desperate then by all means share it but I have yet to see anything yet that doesn’t point to these guys working the system and filling their pockets.
http://www.bloodyelbow.com/2010/4/7/1409785/why-did-dana-white-lead-ufc-112-to#34119205
So to get out of bankruptcy the Fertitta brothers sold the majority of the company assets (a company they were only minority owners in)to themselves. Now they not only own it all instead of just 24% they own it debt free. Everyone thought these guys were desperate for some reason but it looks like they managed to use this situation to make themselves even wealthier and instead of losing the business they now are more firmly in control than ever before.
by who me on Aug 11, 2010 4:36 PM EDT reply actions 8 recs
yes
you are correct they are now more firmly in control than ever before.
a lot of people who loaned them money got screwed hard.
Follow me on Twitter @KidNate
with much of the company’s $5.9 billion debt wiped out
Those investment funds/banks were going to lose their money regardless of who purchased the assets due to the bankruptcy but yes with the Fertittas being the ones that purchased the assets it makes them the benefactors of all that loss.
It’s not about rejoicing it’s about all the people saying this was some big problem for these two guys once again underestimated them and that in the end this didn’t mean anything at all to Zuffa. Good or bad isn’t the issue because we can all agree it turned out badly for the investment banks that just lost 5 billion dollars but all the sky is falling articles and talk of them being in financial trouble just wasn’t the case at all.
It’s what they wanted to believe though so instead of commending you for understanding what they couldnt months ago you’re treated like a party pooper.
In a class of their own: Station Casinos Chief Executive Frank Fertitta, who in 2007 made $122.4 million in exercised options and vested stock. He made another $3.5 million in other compensation. Similarly, Station President Lorenzo Fertitta earned $111.5 million from the value of stock and options, plus another $2.3 million in other compensation.
Their big paydays came after Station Casinos was purchased for $9 billion and taken private by Colony Capital.
http://www.lasvegassun.com/news/2008/jun/16/station-casinos-honchos-hit-jackpot-07/
That was just their 2007 money from Station, it’s all personal wealth (and doesn’t include what their sister and brother in law got out of that deal, they are all partners). I just don’t understand where the idea that these guys were so desperate for money that they sold part of Zuffa for $120 million and then embezzled the money from Zuffa to give to Station? If they needed money the family could just tap the $600million the family got after the 2007 deal. If they could buy out Station for $120 million they they could just write a check and still have a half billion dollars left in the family and that’s just from the 2007 money, it’s not like these guys weren’t pulling millions upon millions of dollars in personal money in 2008 and 2009 and they were already filthy stinking rich before 2007 too. These men are billionaires not people who needed to come up with quick cash so they sell a small piece of their other company. I just don’t see where people got the idea that they were broke and desperate for money?
If they took Zuffa’s money and used it for their personal interest in a different company then that is what it is.
no they took Zuffa's money legally
in the form of salary and dividends and then used that to help them in their fight to keep station casinos.
a business wiz like yourself ought to understand that.
Follow me on Twitter @KidNate
They get dividends whether they sold any of Zuffa or not but that doesn’t mean they got the whole 120 million or that the sell had anything at all to do with Station Casinos. The idea that they needed to sell part of Zuffa to fund this deal hasn’t been backed up by any information at all.
did you ever consider that billionaires
like this are exactly the kind of people whose investments were wiped out in 2008?
Follow me on Twitter @KidNate
Who says they (or any other billionaire) was wiped out? The wealthy have already recovered and are growing their wealth yet again.
Last year’s spike came as U.S. stock markets rallied. The S&P 500 Index rose 28 percent, and the largest wealth management firms reported strong earnings as their clients’ accounts recovered from the 2008 meltdown.
The study also found ultra high net worth families — those with at least $5 million — grew 17 percent last year to 980,000, Spectrem said.
Households with $500,000 or more topped 12.7 million, up 12 percent.
http://www.reuters.com/article/idUSTRE6282M220100309
Do you actually have any information at all about the Fertitta’s being in any kind of personal financial hardship? Any stories, any rumors even? If there is any stories at all about the Fertitta’s being anything besides incredibly wealthy then I would love to see it. of course even if they were their partners, who have financed pretty much everything else with Station so far, Colony Capital is still incredibly well funded.
Call me crazy but all that lithium in Afghanistan is making me more and more interested in Government I mean General Motors IPO
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 8:17 PM EDT up reply actions
i hope you're being paid well for this shilling
you’re certainly earning it.
All I have is the year or so of business journals reporting on the Fertitta’s troubles at Station culminating in bankruptcy.
Follow me on Twitter @KidNate
again, that shows that the casino, like every other company in that industry, was in trouble during the shitty economy. That does nothing to show that the Fertitas themselves were in any trouble.
by Phildo on Aug 11, 2010 8:19 PM EDT up reply actions 4 recs
Then you should know exactly what I am asking and would pull an article from somewhere if there was even any rumors of them being in personal financial distress. Yes Station was in trouble but they only owned 24% of Station Casinos, that doesn’t tell us anything at all about what they had in their own bank accounts or whether they were hurting for money.
the sale of 10% of the UFC
was a giant red flag that they needed cash. there are other ways to get good international partners.
Follow me on Twitter @KidNate
If that money went to to Stations it would be public info in the BK docs.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 8:25 PM EDT up reply actions
And what is Frank Fertitta buying a $33million dollar vacation home after the station bankruptcy a red flag for? What does that say about how they are sitting with their personal wealth.
Casino and mixed-martial-arts mogul Frank J. Fertitta III and his wife have bought a beachfront home in Laguna Beach, Calif., listed at $33 million.
http://online.wsj.com/article/NA_WSJ_PUB:SB10001424052970204423804574285972667530980.html
You know I’m sort of upset with the shill comment, just because I have a different opinion doesn’t mean I’m a shill and I’ve been around here long enough you should know that.
Anyway here are some articles I posted back in April about this. Not my opinion (or my shilling)just some articles written about the subject.
It “should be very simple for people to get” that Zuffa and Station Casinos are “totally separate companies,” he said.
“There’s no connection other than the fact that me and (brother) Frank (Fertitta) own an interest in both companies,” Fertitta added.
Fertitta and his brother, Station Casinos Chairman and CEO Frank Fertitta III, along with high school friend and current UFC President Dana White, bought the UFC in 2001 for $2 million.
The two brothers own 81 percent of Zuffa. Although Lorenzo Fertitta oversees the company’s operations, Frank Fertitta III has no operational role in Zuffa.
Lorenzo Fertitta sits on Station Casinos’ board as vice chairman, but he resigned as Station’s president to focus on Zuffa in June 2008.
Although Lorenzo Fertitta repeatedly emphasizes that the sale to Flash was a strategic move to help the UFC enter the Middle Eastern and Asian regions, fight blogs immediately began trying to make a connection between the investment and a possible investment into Station Casinos.
Abu Dhabi controls the world’s largest sovereign wealth fund, with an estimated value of between $400 billion and more than $875 billion.
The issue reached The Wall Street Journal’s “Bankruptcy Beat” blog Jan. 13.
Paul Thistle, a professor and chairman of the finance department at the University of Nevada, Las Vegas, said the division of the two companies is not unusual among entrepreneurs who often set up separate corporations to protect themselves in case one investment goes bad.
“If it was all one company, Station and UFC, then they would have to use the money from UFC to pay off the debt from Station Casinos,” Thistle said. “They’d have to legally because it’s all been borrowed by one company. This way, they’ve got two separate companies, so that actually protects the assets of UFC from the financial problems they’re having with the casinos. That is really what it comes down to.”
Flash Entertainment’s investment will not benefit Station Casinos, but it is already paying dividends for the UFC.
Now, who is getting this money?
The 10% purchase is dilutive to the current shareholders (the Fertitta Brothers and Dana White). As a result of this transaction, the Fertittas now own 40.5% each (down from 45%), while Dana White now owns 9%. Flash Entertainment is now the third largest shareholder at 10%.
Zuffa, LLC issued NEW shares in the company to complete this transaction. This means that White and the Fertitta brothers didn’t sell any of their shares in the company – they were simply diluted.
If this were a case of the current shareholders “cashing” out, then they would not have issued new shares in the company. They simply would have sold a chunk of the existing shares.
So, all of this money is going into the company. What happens to the money once it is in the company is anybody’s best guess.
The UFC may simply be building up their cash reserves. The UFC may be planning on some kind of an acquisition. Or, maybe the UFC is going to pay down a substantial portion of the $450 million dollars in debt that they currently have. Only they know the answer to that question.
Some have said that the Fertitta brothers may have done this transaction for a reason related to Station Casinos, which is currently in Chapter 11 bankruptcy.
This doesn’t make sense to me though – if they were planning on trying to raise cash to make an offer for Station Casinos via the bankruptcy process, then why would they have issued new shares in Zuffa, LLC to Flash Entertainment? Why not just sell a portion of their existing shares in the company?
http://www.mma-king.com/2010/01/12/analyzing-the-ufcs-sale-of-a-10-stake-to-flash-entertainment/
by who me on Aug 11, 2010 9:00 PM EDT up reply actions 1 recs
Or
he’s just interested in combating the misinformation you’re parading around as fact?
"Only two things are infinite, the universe and human stupidity, and I'm not sure about the former - Albert Einstein"
- Goonisis
by Goonisis on Aug 11, 2010 9:19 PM EDT up reply actions 1 recs
To be fair, i guess
“combating the (likely) misinformation”
"Only two things are infinite, the universe and human stupidity, and I'm not sure about the former - Albert Einstein"
- Goonisis
Not really I only read up on it when someone post an article about it. I work for OSHA I deal with “evil” companies on a near daily basis chatting on this blog is just what I do to unwind. When Zuffa gives generations of workers cancer get back to me about how evil they are. Until then talking about this sport is just a hobby and discussing the financial information of billionaires is something to take my mind off the pain in my currently shattered arm I am dealing with now.
Didn’t we just go down this road a week or so ago?
http://www.bloodyelbow.com/2010/8/3/1602679/ufc-star-joe-stevenson-has-no#43601441
i hope you’re being paid well for this shilling
That’s fucking weak Nate.
Accusing the guy of being a shill because he disagrees with baseless accusation? Is Brookhouse a shill too? Because he has made some very similar posts in this very thread.
by Steve4192 on Aug 11, 2010 9:58 PM EDT up reply actions 3 recs
A lot of people lost a lot of money loaning money to Vegas casinos over the last few years, are the Fertittas any worse than the other rich folks who benefitted from it?
by ufc4 on Aug 11, 2010 5:15 PM EDT via mobile up reply actions
It’s rich people/investment groups that are making the loans too. It’s not like a lot of poor or middle class people were loaning millions to Vegas casinos. Rich people win some and lose some and still stay rich but poor people stay poor. I feel no need to hate any wealthy group any more than any other, we should eat them all :D
It’s the poor middle class that lose billions at the casinos every year
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:24 PM EDT up reply actions
Yep and that’s not an investment it’s just gambling it away with little chance to get anything back in return.
House always wins.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:48 PM EDT up reply actions
Roadhouse
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:49 PM EDT up reply actions
I owe a huge debt to Roadhouse
first movie I ever saw vag in
I throw raps that attack like the Japs on Pearl Harbor/MC's be out like bank robbers/Fleeing the scene, to be a sole survivor/DJ the getaway driver/Tried to dip but he dive, I socialize on vocal vibes/On tracks stabbed up with razor sharp knives
by Anthony Pace on Aug 11, 2010 6:17 PM EDT up reply actions
Tango and Cash bush
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 6:36 PM EDT up reply actions
So basically Colony Capital, a “Private Real Estate Investment Firm” whose usual occupation is screwing people, just got screwed big time.
Ah, don’t worry really they’ll survive.
Well, anybody who knows me knows I'm no fan of dictionaries or reference books. They're elitist. Constantly telling us what is or isn't true. Or what did or didn't happen.
Explained it much better than I did above!
by Jamie Penick on Aug 11, 2010 4:41 PM EDT up reply actions
Wow.
When a true genius appears in the world, you may know him by this sign, that the dunces are in a confederacy against him. - Jonathan Swift
Contributor for WatchKalibRun.com
Still Subo at Fightlinker.com
by Derek Suboticki on Aug 11, 2010 4:49 PM EDT up reply actions
I will explain it to you guys...
1) You buy a home with some partners.
2) You get a bunch of people to put in money as investors for the venture.
3) You take a bunch of loans out and create billions in debt against your house using the money to upgrade your house and purchase/build other houses.
4) You can’t pay back the loans when economy tanks so you file for bankruptcy.
5) You form a smaller separate group to buy the house in bankruptcy court.
6) You place a bid and buy it without the debt against it at a cheaper value taking more control of it with less partners and screwing all original unprotected investors.
Conclusion: Welcome to why our economy went down the toilet. Can someone explain the ethics and legality? =)
by MMASuPreMaCy on Aug 11, 2010 4:45 PM EDT reply actions 5 recs
That sounds pretty brilliant.
Our economy went under because people cheated, lied, and broke the law. Which of those happened here?
When a true genius appears in the world, you may know him by this sign, that the dunces are in a confederacy against him. - Jonathan Swift
Contributor for WatchKalibRun.com
Still Subo at Fightlinker.com
by Derek Suboticki on Aug 11, 2010 4:50 PM EDT up reply actions
Very few people cheated, lied, or broke the law
Our economy tanked because people in power made sure the law was changes so they could pull all the massive, unleveraged debt, deregulated deals they wanted.
This is just another example.
I work primarily in Business Law and Bankruptcy.
This is the nature of bankruptcy. It’s always risky to lend money. When someone files for bankruptcy unsecured creditors are screwed and that’s that. Happens every single day. Is it fair? Who cares, it’s legal.
Welcome to why our economy went down the toilet. Can someone explain the ethics and legality
This happened because our economy went down the toilet, if the economy was still strong then they would still be making loan payments. You have your cause and effect backwards. What this shows is why our economy going down the toilet wasn’t really a bad thing for the super rich in this country, most of those guys are wealthier now than they were before the economy tanked. There is nothing illegal about this at all but yes the ethics discussion of this would be a huge egg to crack.
by who me on Aug 11, 2010 5:03 PM EDT up reply actions 1 recs
You missed a step
3.5) Have your partners agree to pay you a golden salary “for managing” the house under the legal disguise of an “employee” using the money from the loans. (That way you get to keep the money)
by bignerd on Aug 11, 2010 7:54 PM EDT up reply actions 1 recs
The question is why were the Fertitta brothers the only qualified bid for the casinos? Wouldnt there be other rich investment firms interested in getting into the casino business at a cheap price?
In other words, If the bank repossesses by home because i cant pay the mortgage, i wouldnt be able to just buy my home back cheap because other buyers out there will be purchasing my house instead at market value.
Yup...
There were others interested, Station Casino competitors Boy’d Gaming. How the Fertitta’s bid was the only qualifying bid is the key question here.
by MMASuPreMaCy on Aug 11, 2010 5:09 PM EDT up reply actions
July 30 (Bloomberg) Boyd Gaming Corp. abandoned its bid for some assets of Station Casinos Inc., the biggest U.S. gambling company in bankruptcy, citing concerns with the court- approved auction conditions.
"We have concluded this opportunity no longer makes sense for our company," Chief Executive Officer Keith Smith said today in a statement. He cited "bidding procedures that favor Station insiders" and the properties’ limited potential as reasons.
Boyd was the biggest known rival to efforts by Station’s existing owners to retain control of all of its casinos after bankruptcy. Today was the deadline for bidders to submit their offers before a Nevada judge oversees an Aug. 6 auction of most of Station’s casinos. The owners, the founding Fertitta family and Colony Capital LLC, are opening bidding with $772 million of new equity.
by MMASuPreMaCy on Aug 11, 2010 5:12 PM EDT up reply actions
and the properties’ limited potential as reasons.
Boyd realized they couldn’t get it as cheap as they wanted(which is what they were after from the before the bankruptcy was first filed, a cheap asset buy).
or it could be that Boyd sees what the Fertittas are doing is taking more ownership of a falling ship. Either way, you can’t deny that the first statement. It was well known that Station Casino Insiders were making it impossible for anyone else to buy the assets.
by MMASuPreMaCy on Aug 11, 2010 5:21 PM EDT up reply actions
If it was illegal then the Federal Trustee wouldn’t of let them do it. the Fertitta’s didn’t have control over this the courts did. What the Fertitta’s had was knowledge of just how much they had to bid to make this too financially risky for Boyd to pursue.
You have to stop using logic.
It is baffling people.
Thanks “who me”. The last sentence was all I needed. ;)
by sadface on Aug 11, 2010 7:13 PM EDT via mobile up reply actions
It's not up to them.
Once you file for bankruptcy protection all assets are considered property of the bankrupt estate. A Trustee, appointed by the Federal Bankruptcy Court of their district, handles the liquidiation of all assets with the goal of getting as much money to the creditors as possible. Anybody would have had the same opportunities as the Fertittas to get to the assets.
In the future though who would guarantee the Feritta brothers any loans if you knew they hosed all their creditors the first time
That’s where having friends in high places and a family with money and friends help. =)
by MMASuPreMaCy on Aug 11, 2010 5:32 PM EDT up reply actions
Well, fuck having that in MMA! I want $kala back!
When a true genius appears in the world, you may know him by this sign, that the dunces are in a confederacy against him. - Jonathan Swift
Contributor for WatchKalibRun.com
Still Subo at Fightlinker.com
by Derek Suboticki on Aug 11, 2010 7:41 PM EDT up reply actions
I think you would be surprised.
Most creditors don’t consider bankruptcy as them being hosed. Even if they did, other lenders will step up. Why? Because you are nearly debt free and that makes you a good risk. Our clients call us all the time to say how shocked they are at the amount of credit offers being mailed to them post-bankruptcy.
i think that may only apply to high profile names like trump and the fertittas.. for the rest of us losers bankruptcy isnt so great
You know little of bankruptcy my panda friend.
The road to bankruptcy is by far the hardest part but I would say 90% of my clients feel a huge relief when they file.
The phone calls stop.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:40 PM EDT up reply actions
I’ve heard horror stories from clients about collectors one guy brought his answering machine from home because the shit was just so outrageous he had to prove it.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:43 PM EDT up reply actions
I love it when a client files and the creditor isn't aware the automatic stay is in effect...
then they repo their vehicle or take funds from their bank accounts and then have to give it back when they find out they filed.
Here if a client even tells a creditor they filed they are to go on a no call list and receive no further contact. But we also have rent to own furniture stores with pay day loan counters inside it’s all backwards really.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:51 PM EDT up reply actions
Been there done that, got credit card and bank loan offers the day after the case closed. Trust me I am the very definition of poor and and when we went through that I was unemployed to boot but that didn’t stop companies from trying to loan me money.
Don’t thank me for losing my job and having to declare bankruptcy it sucked ass but sometimes you just have to do what you have to do and make the best of a bad situation. Even the credit advisior the law forces you to pay to try and talk you out of filing told me that bankruptcy would improve my credit score at that point. Getting credit isn’t hard it’s balancing a budget in a bad economy without falling into the same traps that is hard work.
Did you file before the new law changes took effect? October 2005 was the deadline to file before you were under the new rules. Credit card lobbyists made that one happen.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:53 PM EDT up reply actions
After the new law but I was out of work for over a year at that point so we were in such bad shape that even the new laws didn’t really mean much to our case. The wildest part for me is that I was offered a new job 2 days before the case was finalized so I went from down in the dumps to back in the game literally overnight.
Helps you see the forrest for the trees
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 6:01 PM EDT up reply actions
Before your meeting of creditors I could secure you a line of credit.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:40 PM EDT up reply actions
Like I said...
It’s the reason why our economy went down the toilet… someone has to cover the costs when people getting loans can’t repay them. =)
by MMASuPreMaCy on Aug 11, 2010 5:40 PM EDT up reply actions
^this.
sure its good for the Fertittas but bad for everyone else.
I am. I think. I will. - Ayn Rand
But I won’t pick against Jon Jones again until I see him lose. - Kwisatz Haderach
sure its good for the Fertittas but bad for everyone else
Nope. Win the Fertittas win, EVERYONE wins! We’re all getting laid tonight!!!!
I throw raps that attack like the Japs on Pearl Harbor/MC's be out like bank robbers/Fleeing the scene, to be a sole survivor/DJ the getaway driver/Tried to dip but he dive, I socialize on vocal vibes/On tracks stabbed up with razor sharp knives
by Anthony Pace on Aug 11, 2010 5:47 PM EDT up reply actions
The reason our economy went down the toilet is because they all went loan crazy and started handing out money to anyone with a pulse and then sold it off to other companies. The people who couldn’t pay back the loans weren’t the issue because most of them should of never been approved to start with and once things started going down it snowballed and pulled a lot of people who normally could pay down with it.
Well yeah, I tie all that together. But you are right, there is no way 80% of people who got loans should have gotten them in the first place.
by MMASuPreMaCy on Aug 11, 2010 5:53 PM EDT up reply actions
The smaller loans weren’t the only issue. The over leveraged mega-deals financial institutions were putting together to hide the risks had a lot to do with it.
Exactly
Although I transcribed to the theory that three major things killed our economy:
1) Greenspan keeping interest rates too low between 2003 and 2005 as the real estate and credit bubbles inflated.
2) deregulation led to an unsupervised market in more and more exotic derivatives—CDSs, CDOs, CDSs on CDOs )—allowed heedless financial institutions to put the whole financial system at risk.
3) Human nature as people gave in to the delusion that this was a permanent boom. And of course, those who should have served as our better angels also succumb to poor risk analysis.
Good analysis but I would add in that the lack of growth in mean household income of the middle class pushed their economic growth in a different direction, tapping equity in their homes. The entire economic boom was a manufactured bubble. The actual economy was never that great, it was all smoke and mirrors.
by who me on Aug 11, 2010 7:49 PM EDT up reply actions 1 recs
This
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 7:51 PM EDT up reply actions
I agree. The way I view it the stagnation of the middle class and the trend of using their homes as a source of wealth was a bunch of dead wood, which would have rotted out beneath us eventually. But the problems I listed, threw more wood on the pile and then tossed in a match.
Or something like that.
by John Nash on Aug 11, 2010 9:28 PM EDT via mobile up reply actions
I agree. The way I view it the stagnation of the middle class and the trend of using their homes as a source of wealth was a bunch of dead wood, which would have rotted out beneath us eventually. But the problems I listed, threw more wood on the pile and then tossed in a match.
Or something like that.
by John Nash on Aug 11, 2010 10:21 PM EDT via mobile up reply actions
For someone who sounds financially literate, such as yourself
You might find Michael Lewis’ (of Liar’s Poker, Moneyball and The Blind Side fame) “The End” originally on portfolio.com (now defunct) an interesting read from the other side.
Or “A Demon of Our Own Design” about the nature of derivatives.
"All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident." -Arthur Schopenhauer
Haters are gonna hate and bitches are gonna bitch...
by BigDNotDallas on Aug 11, 2010 6:29 PM EDT via mobile up reply actions
Bullshit. After bankruptcy you will be offered car loans, credit cards, and time share financing. Any installment loan will be termed less than seven years conveniently the same amount of time before you can refile. If you fail to pay you’re new bills it’s fine they collected interest and fees upfront and sell your debt to a collection agent. After you fail to pay them it’s off to court then wage garnishments. At the end of the day they know they can make you pay.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:39 PM EDT up reply actions
Now is the time to loan them money, they have no debt just make sure the term is no longer than five or seven years not sure in NV.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:35 PM EDT up reply actions
Fresh discharged BK’s or open are slam dunks all day, pounders. Even 13’s can’t stop me.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:41 PM EDT up reply actions
It’s not up to them, but they can do whatever they can to make it difficult for everyone else. Its just business…
by MMASuPreMaCy on Aug 11, 2010 5:33 PM EDT up reply actions
Like some sort of Federal conspiracy theory?
Once they filed, the Trustee made all final decisions. Not them. What is that you think they could have done to make it harder on other bidders?
Never said illegal or legal, though in business or politics there is always a gray area, but insiders knew certain details that would give the new formed group an advantage into acquiring Stations.
by MMASuPreMaCy on Aug 11, 2010 5:38 PM EDT up reply actions
There are no secret details that make anything advantageous for the Fertittas!
In bankruptcy everything is disclosed, laid out on the table, and the bankruptcy Trustee tries to get as much money for creditors as humanly possible.
Trustees can be unreasonable at times same with the attorneys I still think kickbacks for convincing clients to file a 13 instead of a 7 is such bullshit.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:48 PM EDT up reply actions
Yeah. Guaranteed money for the creditors is why.
The Trustees don’t even want to find assets in a 7 unless they are easily liquidated.
It’s not fair further shaming a client with the bullshit of a thirteen being better for their credit and noble.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 6:09 PM EDT up reply actions
A good bk attorney should be able to recognize beforehand the chances of getting converted in a particular case. We always tell them “they’ll ask if you want to switch to ch 13; say no!”.
Maui office hiring?
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 6:37 PM EDT up reply actions
A friend of mine is a debt counselor looking for work pretty bleak he says.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 7:49 PM EDT up reply actions
Yeah debt counselors became a dime a dozen with the sudden
increase in bankruptcies (pre-filing counseling and post filing debtor education). Even the nonprofits are overstaffed.
You might know. If any of the Flash entertainment money went to Stations wouldn’t the trustee allocate towards debt? If so it would be public info on Pacer.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 8:23 PM EDT up reply actions
The schedules should be pretty clear if you find anything let me know.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 8:30 PM EDT up reply actions
The Petition was filed on July 28, 2009.
The Flash deal happened the following January. None of that money went back into Station casinos unless the group that bid on Station somehow received that money from Zuffa which wouldn’t show up in the schedules for Station Casino’s BK.
and by the way.....
things are far from clear on a chapter 11 Petition. Typically they have thousands of documents, amendments, etc….very complicated
Logged off already....
Nothing seemed out of the ordinary. No adversary proceedings or anything. Lots of debts, lots of creditors, lots of attorneys, like 3,000 documents filed in the case so far (typical chapter 7 has about 40).
Thanks man appreciate your help.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 9:57 PM EDT up reply actions
That’s what I was getting at. I don’t know of laws regarding this situation, what can an outside group do to influence another company not bidding.
by sadface on Aug 11, 2010 5:40 PM EDT via mobile up reply actions
[voice-over]
A lot of holes in the desert, and a lot of problems are buried in those holes. But you gotta do it right. I mean, you gotta have the hole already dug before you show up with a package in the trunk. Otherwise, you’re talking about a half-hour to forty-five minutes worth of digging. And who knows who’s gonna come along in that time? Pretty soon, you gotta dig a few more holes. You could be there all fuckin’ night.
Well, anybody who knows me knows I'm no fan of dictionaries or reference books. They're elitist. Constantly telling us what is or isn't true. Or what did or didn't happen.
by MarcoDos on Aug 11, 2010 5:14 PM EDT up reply actions 4 recs
So pretty much after all the articles and horrible speculation, in the end we end up right where we started. With the Fertittas showing they are incredible business men who know what they are doing and are swimming in money not really a surprise unless you were doing alot of jumping to false conclutions.
"they mad at me, I keep going hard reppin/
cause what's your Rampage to Rashad Evans/"
-Joe Budden (Something To Ride To)
http://www.zshare.net/audio/76866807deabe3c1/
I could use some clarification here.
From what I’ve read in the comments it would seem that the portion of Zuffa that was sold earlier on was not needed to shore up cash flow issues that the Fertittas brothers were having because of the Stations bankruptcy.
The article says the opposite.
Whats the final conclusion here?
Did the Fertittas sell because of the bankruptcy or not?
According to people I’ve talked to, no.
But if you want to speculate there are two things that happened, one of which appears to have been bad for the Fertita’s bottom line (it wasn’t really) and the other which appears good. So if you are willing to speculate you say that the good offset the bad to a degree so they must be related
Editor - BloodyElbow.com - SBNation's mixed martial arts headquarters.
MMA Editor - SBNation.com
by Brent Brookhouse on Aug 11, 2010 5:26 PM EDT up reply actions
Read what MmaSupremacy laid out above. They made tons of cash by taking out tons of loans, don’t have to pay any of it back and have retained control of their casinos.
by sadface on Aug 11, 2010 5:26 PM EDT via mobile up reply actions
But if i were to take out a loan for my business wouldnt you have to put up collateral or a personal guarantee? thats what normal businesses have to do
I was just thinking those creditors were probably selling derivatives on those loans anyways. Debt = assets to the banks so it didnt matter
Yeah it don’t matter nothing to worry about just a few billion don’t matter. Panda you must have Puji Money son.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:44 PM EDT up reply actions
You mean Chase? I miss Washington Mutual.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 5:58 PM EDT up reply actions
I have no clue at all about the laws regarding this. It seems they took on debt in an effort to make themselves money, declared bankruptcy, had help fending off other buyers and repurchased their company and wiped their debts out.
The collateral would be their casino company I would assume. Who knows?
by sadface on Aug 11, 2010 5:33 PM EDT via mobile up reply actions
Our system is so flawed
Way to get rich off of investors, run company in bankruptcy, nearly destroy your family legacy. Have most of your dept wiped out. By back most of said company for a fraction of what you sold for and regain majority control of the company. I am so dismayed (and maybe jealous?) that I don’t know if these guys are just unimaginable horrible bastards or the most amazing dudes on the planet.
Capitalism must be the absolute worst possible economic system in the world, except for the alternatives.
It appears they created the bankruptcy to make more money. Its amazing to me.
by sadface on Aug 11, 2010 5:30 PM EDT via mobile up reply actions
Capitalism must be the absolute worst possible economic system in the world, except for the alternatives.
One of my favorite sayings. I’m ready for things to turn around. Unfortunately they aren’t going to for a while yet.
by jrobb20 on Aug 11, 2010 5:30 PM EDT reply actions 1 recs
If you are outraged by this please don’t look into the specifics of the GM and Chrysler bankruptcy you’ll be missed. Not to mention the illegal government sponsored dealership closures across the nation.
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
Financial management for people who don’t understand finance:
1 Dig a hole in your back yard
2 Put your money in it
3 Never give your money to someone who makes 1000x more than you and expect them to take care of it
Keep Firing, Assholes!
Truculence, Belligerence, & Pugnacity
Financial management for people who DO understand finance:
1 Dig a hole in your back yard
2 Put your money in it
3 Now swim scrooge McDuck style
by pandaboy99 on Aug 11, 2010 5:56 PM EDT up reply actions 1 recs
Diving headfirst into a pile of gold bullion is not healthy, it’s not nearly as forgiving on the whole spine/head region as you think. Although I fully endorse this plan of action for Bernie Madoff.
Keep Firing, Assholes!
Truculence, Belligerence, & Pugnacity
Kid Nate, you are annoying
Just because you have some ethical problem with it does not mean you need to start a conspiracy theory, some people are just willing to take advantage of the system and other people just complain about it all day and never get ahead
It’s the voice. To fix it all you need to do is visualize James Earl Jones before speaking.
Keep Firing, Assholes!
Truculence, Belligerence, & Pugnacity
Or me.
When a true genius appears in the world, you may know him by this sign, that the dunces are in a confederacy against him. - Jonathan Swift
Contributor for WatchKalibRun.com
Still Subo at Fightlinker.com
by Derek Suboticki on Aug 11, 2010 7:44 PM EDT up reply actions
not Rhea Perlman?
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 8:27 PM EDT up reply actions
Sorry buddy,
but you have a fat man voice.
Keep Firing, Assholes!
Truculence, Belligerence, & Pugnacity
it’s a hybrid of Rhea Perlman and Doug Stanhope
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 10:00 PM EDT up reply actions
Yeah I might have listened to the Low Blow big whoop wanna fight about it?
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 10:01 PM EDT up reply actions
Im not a financial genius so someone help me out on this.
So basically they got 1.5 billion dollars for themselves, and wont have to pay it back because the loan wasnt in their name. And since they will be under bankruptcy protection, they pretty much wont be paying it back themselves right? So that nice chunk of change is theirs to keep, and Stations will be paying it back for them if/when they get outta debt.
Nope. They got the1.5 in the buyout and then used 900million of that to buy into the new company. They didn’t take out any loans at all Station took out the loans for Station. Station couldn’t pay it’s loans so it was put into bankruptcy and much of the assets were put up for sale, the Fertitta’s bought the assets and now own them without the debt that was previously attached.
They were bought out for 1.5 billion and bought back in for 900 million. The family put 600 million in cash in the bank after the 2007 deal, that was Colony’s money. Station took out loans and debt in this process of going private and that’s what hurt the company so bad in 2009 when the economy tanked.
This is a sad testament to the way American business agreements are allowed to be conducted. But more than that, it speaks volumes for the lack of Mafia in Las Vegas these days. Even up until the early 90s, you’d have to have a lot of crazy in your head to burn Vegas “investors” of a couple hundred milly. Nicky Santoro would be digging a hole in the desert for you.
espino, they were partially bought out at just the right time, but they lost all of the money they reinvested.
I t sounds like Colony Capitol wanted to own the casinos nearly outright , so they raised and borrowed money to pay off the previous shareholders and the Frititas. They timing could not have been better to sell your stake in the casino. However, the Frititas reinvested most of the money back for a 24% stake.
That 900M they reinvested is gone now so the Frititas aren’t making out quite as good as you might think. I’m sure they weren’t happy to see the gaming business fall of a cliff but they were partially bought out by that time so it took some of the sting out of the business being severly in the red. Now they are investing new capital for what appears to be a larger ownership stake. It might work out for them depending but it might not. If debt repayments were the primary cause for lsoing money then they will make out like bandits. If the place just cant be operated profitably because it is a dump and the industry is in a long term slump then this will turn out to be huge money pit for them.
Your beliefs become your reality.
by Hardy's in your face on Aug 11, 2010 6:20 PM EDT reply actions
The casinos were still profitable, it was the loan payments that put them in the red. Colony Capital was partners with the Fertittas (and may still be), they owned the vast majority of Station but they turned around and hired Frank and Lorenzo to run them (Lorenzo has left Station to work for Zuffa full time).
Colony took it in the shorts since they paid 8.8 B for an enterprise that is now BK. They borrrowed 3.3 B of that but sahreholders of Colony are still stinging.
Your beliefs become your reality.
by Hardy's in your face on Aug 12, 2010 12:26 AM EDT up reply actions
I would much rather
have this kind of thing happen than the government bailout a company. The people who “lost” are investors, everyone understands that risk. Using taxpayer dollars to save a company is a far greater evil than this, I didn’t choose to spent my money there.
except
that if Bush, and later Obama hadn’t propped up the banks we would have had a depression like the 30ies, now we just have a recession. If we can dump gazillions into war, we can spend some on stabilizing the economy, even if it rewards corporate douchebaggery.
but enough politics aye?
..!..
It's plausible, and the easiest way to get the money out of Zuffa is through a Dividend paid to the Fertittas
Because Zuffa and Station are separate entities, and that Zuffa is a limited liability company and Station a corporation, transferring money between the two is problematic.
However when FEG invested in Zuffa, and the Fertitta’s sold 4.5% stake each (and Dana White selling 1%), they could then pay themselves the majority of the investment as a dividend, and then the money is freed up to do what they wish with. And I don’t think it would be taxed either, but maybe someone with better financial understanding could support or correct me on this.
there are a million ways to do it
the tax code is one big giant loophole collection that benefits the extremely wealthy to the….extreme.
Follow me on Twitter @KidNate
They didn’t sell any of their stake in Zuffa they created new shares to sell to FEG. If they had wanted the money they could of just sold some of their shares and been paid straight but by creating new shares the purchase money goes to the company. Is there a reason why they would go through the convoluted steps of creating new shares and then selling them with the money going straight to Zuffa and then taking that money out as a dividend when all they had to do is sell some of their shares and get the money?
people have this view of zuffa and the ufc as this unstoppable goliath
the plain and simple truth is that zuffa is far from unstoppable
the plain and simple truth is that no company is unstoppable
the fertitta’s have time and time again showed business ethics and procedures that teeter on the brink of fraud.
the fertitta family is las vegas’ first mafia family moved out by the kansas city mob to oversee skimming operations that were highlighted in the movie “Casino”
and it shines through in their business ethics
who is keizer soze
by Johnathan Willis on Aug 11, 2010 9:03 PM EDT reply actions
nice one
they know how to get paid, i wanna file bankruptcy and still have millions, but I’m too stupid to find a way how.
..!..
They didn’t file bankruptcy one of their companies did. That’s why they get to hang on to their personal money.
It’s like carrying insurance people think things out ahead of time
"Holy Crap Lashley is one Bi black dude. He just looks so immensely thick in that picture."
-Pain
by Barack Lesnar on Aug 11, 2010 10:03 PM EDT up reply actions
The Fertittas are disgusting people!!!
This shows how disgusting the Fertittas are! They did the same thing with Xyience! The Fertittas should be in prison for this!
Um they don’t send people to prison for something that is completely legal and has been approved by a federal court.
The Station bankruptcy is completely legal not the Xyience crap, it’s two completely different situations.
So you agree with this BS? These BS business practices which are legal have put this economy in the toilet.
No you are putting the cause before the effect here, this bankruptcy happened because the economy is in the toilet all the Fertitta’s did was take advantage of this to save their company. If the economy had remained strong then Station would of kept making enough money to pay back it’s loans. Really even if the Fertitta’s hadn’t of bought it Boyds gaming would of in the same manner for a similar price and there is a good chance they would of dismantled the company to fit the pieces they wanted into theirs. Without the bankruptcy then Station would of flat out failed and 11,000 people would of lost their jobs.
Yes it’s pretty hinky that the Fertittas managed to come out of this and keep the company in better shape than it was before but the actual bankruptcy keeping the company together and functioning is a very good thing for all those workers who depend on it. The creditors (which are the big banks/investment groups that did put the economy in the toilet to start with) got screwed but then they were getting screwed no matter how this turned out, their money was gone due to the company going into bankruptcy not how it came out of it.
having a less than perfect job >>>>>>>>> having no job.
Especially if it’s august 2010, and you live in las vegas, and work in a casino.
by Phildo on Aug 12, 2010 9:23 AM EDT up reply actions 1 recs
I should also point out as I did above that I work in government regulation of occupational safety, Station Casinos isn’t killing it’s workers off or cripling them for life and that is scarily common these days in US industries. I am as pro-worker as you can get, I actually chose a career dedicated to protecting workers but the things Station has done doesn’t even hit the radar for the evil’s I see on a daily basis.
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