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Multiple Fontainebleau Executives Leave Company

Discussion in 'Casino Industry & Development' started by vegasvstr, Dec 31, 2023.

  1. yankees4ever31

    yankees4ever31 Low-Roller

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    Once the new management is in place, how long will it take for their new vision/direction to be implemented? At least six months. I am rooting hard for FB to succeed, but this doesn’t bode well.
     
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  2. SDBurgerBoss

    SDBurgerBoss Low-Roller

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    I think the Koch involvement constitutes financing. They financed the deal I believe and are more like the bank then operating partner. I’m not entirely sure but from what I read that’s how I’m interpreting it. Also this is a tiny blip on their ledger and I can’t see them being to hands on with this. They will cut their losses though if it becomes a constant drag on the P/L similar to what Deutsche Bank did with Cosmo.
     
  3. vegasdev

    vegasdev VIP Whale

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    Trying to be optimistic here, I certainly hope that they DON'T fail.
    When it comes to Vegas mega resorts, we don't need status quo, we need something different.
     
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  4. McMolten

    McMolten Low-Roller

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    This! Competition is good for consumers.
     
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  5. SDBurgerBoss

    SDBurgerBoss Low-Roller

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    If it fails it will not just shut down like a failed chain restaurant and sit empty. Some private equity firm will buy it for 40 cents on the dollar tweak the operations aka get people in the door to make more money, build it up and sell it. Cosmo started out as a party casino and all that and then it failed, a new team came in focused on both the pools/clubs and the casino and it thrived.
     
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  6. WeCax49

    WeCax49 Low-Roller

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    Possibly, or there's simply not the demand for another high end property. Revel closed down. Albeit, I think the most likely outcome is that it is sold for 10 cents on the dollar and becomes a mid range convention hotel.
     
  7. Patman

    Patman VIP Whale

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    Maybe Cosmo 2.0. Since Blackstone is one of the lenders in the lending group. They lead the charge to foreclose, run the operations for a while to bring up the numbers, then keep the property and lease the operations to MGM Resorts.

    I don't have much interest in FB, but I hope they can get their act together and make a go of it. They seemed to have pulled in enough talent from the other properties to have the knowledge for running a property. Problem might be those in the background pulling the strings.
     
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  8. SH0CK

    SH0CK Stylin' and Profilin' Quasi Tech Admin

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    I don't imagine MGM or even CET wants anything to do with that end of the Strip, but I bet Phil Ruffin wouldn't mind kicking the tires.

    I have a suspicion a lot of these exec left/got fired to make room for an outside company, possibly Agua Caliente Casinos, to come in and take over operations of the casino side of things.

    But yeah, it wouldn't surprise me either if we have ourselves another Lucky Dragon or the rebuilt Alladin/PHo on our hands where they go bankrupt in a short amount of time and someone else comes in to take it over on the cheap.
     
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  9. Mr Bulldops

    Mr Bulldops VIP Whale

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    Phil Ruffin has said he wants nothing to do with a property unless he gets the real estate as well. That was the main reason he didn’t make a play for Mirage, they were just selling the operations and a REIT retained the real estate.

    I’d guess that unless something like Revel repeats itself, it’s probably out of his price range. I doubt Koch will let it get to that point, though. If they can’t right the ship, they’ll start shopping buyers.
     
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  10. Guy

    Guy Captain of the Heads

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    Indeed. There's plenty of demand out there, you could fill every room easily if you lowered the price enough, but would that make you any money?

    Other than high rollers who can be won over with generous enough comps, why would a paying customer pick FB over Wynn (seen as the 'God Tier' resort), Venetian (high end, plus has a theme/gimmick), Bellagio (everyone loves a good fountain), or even a fairly affordable fountain view balcony room at Cosmo (looks good on Instagram, no-one will be impressed of your view over Circus Circus from FB's windows).

    Their logical fit seems to be into the same 'nice but somewhat affordable' category as Mandalay Bay or NoMad.
     
    Easter 2024
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  11. bobby jones

    bobby jones VIP Whale

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    The old adage in the hotel business is first builder blows their brains out building their Taj Mahal. When they go under due to the above, second guy comes in at 50c on the dollar sure they got a great deal until they just can’t make it. Third buyer comes in at 25c on the dollar and has a nice business!
     
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  12. LVRaiders

    LVRaiders Degenerate Gambler

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    So much to unpack (announcement on a Sunday in intriguing): Fontainebleau has a new president, Maurice Wooden—previously president of Wynn/Encore. Current Fontainebleau president Mark Tricano will stay on and report to Wooden.
     
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  13. LVRaiders

    LVRaiders Degenerate Gambler

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  14. JulianC

    JulianC Amateur

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  15. LVRaiders

    LVRaiders Degenerate Gambler

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  16. Cat_Bird_Seat

    Cat_Bird_Seat Low-Roller

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    Well…that’s awkward…see this link from 1/23/24…
    https://gamingamerica.com/magazine/9625/mark-tricano-how-fontainebleau-las-vegas-will-set-the-benchmark

    “Tricano says he is very fortunate to be entrusted with his role as President of the Fontainebleau Las Vegas, bestowed upon him not only by Soffer but by Brett Mufson and Koch Industries. Mufson was previously appointed President and CEO of the property in January 2023, as Soffer’s long-time business partner, and will remain President of Fontainebleau Development. It takes a village of executives to raise a luxury hotel and casino, after all. Tricano was ever-grateful for the chance to be part of something of this scale, commenting that opening a casino on the Las Vegas Strip was a “once in a lifetime” opportunity.”

    I wonder if he knew he was getting demoted.
     
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  17. AllenAndRossi

    AllenAndRossi VIP Whale

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    Actual notes pulled from the Fontainebleau Employee Suggestion Box:

    "What if we let a different person be President every week! New ideas implemented every week! One of them would have to work, right? Maybe?"

    "We should have TWO Presidents! 2 times the leadership equals 2 times the-um, well-it's something to try!"

    "The nachos are still too small and too overpriced!"
     
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  18. jpfromla

    jpfromla RFB

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    A broken clock is right twice a day....
     
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  19. vegasvstr

    vegasvstr VIP Whale

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    More cuts, allegedly.:popcorn:

    "2 FB shift managers were let go this week. Both had been brought in by Michael Clifford, the senior VP of operations who "voluntarily resigned" just 2 weeks after the resort opened.
    Also, the director of table game administration was let go, per source."
    And
    "It's not as bad as it seems, we had way too many managers in the casino..." -Fontainebleau employee
    https://x.com/LasVegasLocally/status/1752907998127899051?s=20
     
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  20. Jackpot Johnny

    Jackpot Johnny Wynn Fan

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    You are correct.

    What Steve Wynn did in Las Vegas recessions. Didn’t lay off his people and had infrastructure and people when the market turned.
     
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