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View Full Version : Station Casino's has money problems...



Evan
10-24-2008, 07:16 PM
The people who own the UFC.

http://www.fightopinion.com/2008/10/23/reports-station-casinos-is-in-big-financial-trouble/

http://www.bloodyelbow.com/2008/10/24/641891/is-the-fertitta-business-e

What this means to the UFC? Who knows for sure? not much?. I have read a lot of writes up on this the past two days and I am as clueless now as I was when I started. Reading the comments some people who seem to know financial issues say its no big deal, then 9 people say "lolz they skrewed the Dana's"

The entire Vegas area is in deep financial trouble tho....

Station Casino's are supposedly some of the most profitable casino's so if they go down I am sure many will precede them.

One thing I am 100% sure of ...this is an economy problem, not a UFC or casino problem.

dbreiden83080
10-24-2008, 07:57 PM
With the UFC still selling out arenas and setting PPV records, i'm sure they'll survive.

Evan
10-24-2008, 08:02 PM
With the UFC still selling out arenas and setting PPV records, i'm sure they'll survive.

Yeah one has nothing to do with the other but its still interesting to over obsessed dorks like me.

Station has always been run 100% independent of the UFC which is why they have never had an event at a station casino.

Evan
10-28-2008, 07:40 PM
mmarated.com

"Interestingly enough, Affliction co-founder Todd Beard has recently surfaced to voice his displeasure with the UFC, most notably on a recent appearance on "The Scott Ferrall Show."

"They threaten us personally, which is hilarious," Beard said. "Dana White, Lorenzo Fertita, they are tough guys. They're old school mafia guys, or wannabe old school mafia guys that their grandfather built their business and they are nothing. They’re nothing."

When asked about Beard's comments, Atencio seemingly shrugged them off.

"I will always do my fighting in the ring but my partner has just had it with them," Atencio said.

During his interview with Ferrall, Beard mentioned that Zuffa co-founders, Lorenzo and Frank Fertitta, are experiencing some financial trouble with their Palace Station Casino properties.

"They put their business five billion dollars in debt," Beard said in the interview."They’re in big touble right now. They are going to go out of business in February. Guaranteed. Station Casinos will go out of business in February for sure."

Atencio did not refute this claim.

"They want to talk about us being done by January," Atencio said. "Well, I will guarantee you that their Statino Casinos will be out of business by February...I have all the proof I need."

Of course, there are two sides to every story but an effort to get a response from someone at Zuffa was unsuccessful."

Now of course Tom has been known to stretch the truth like any other promoter.

robbie380
10-30-2008, 11:45 PM
The people who own the UFC.

http://www.fightopinion.com/2008/10/23/reports-station-casinos-is-in-big-financial-trouble/

http://www.bloodyelbow.com/2008/10/24/641891/is-the-fertitta-business-e

What this means to the UFC? Who knows for sure? not much?. I have read a lot of writes up on this the past two days and I am as clueless now as I was when I started. Reading the comments some people who seem to know financial issues say its no big deal, then 9 people say "lolz they skrewed the Dana's"

The entire Vegas area is in deep financial trouble tho....

Station Casino's are supposedly some of the most profitable casino's so if they go down I am sure many will precede them.

One thing I am 100% sure of ...this is an economy problem, not a UFC or casino problem.


just saw this thread....many of the casinos are in bad shape since they took out a ton of loans near the top of the housing bubble for expansion and we all know what has happened since then. las vegas sands (LVS) has dropped from 140 down to 10. they were at 5 but then i guess they were able to get some refinancing done on their loans. i know MGM is in trouble and so is harrah's. MGM did recently get a couple billion in funding so we will see how things work out with the economy and their future ability to get financing.

i totally forgot about station since they were taken private awhile back but that makes me wonder how mandalay bay is doing as well since they were taken private awhile back too. anyhow....i would imagine UFC would just get sold to someone else if station needed money that bad. UFC would remain uneffected.

Evan
10-31-2008, 08:37 AM
just saw this thread....many of the casinos are in bad shape since they took out a ton of loans near the top of the housing bubble for expansion and we all know what has happened since then. las vegas sands (LVS) has dropped from 140 down to 10. they were at 5 but then i guess they were able to get some refinancing done on their loans. i know MGM is in trouble and so is harrah's. MGM did recently get a couple billion in funding so we will see how things work out with the economy and their future ability to get financing.

i totally forgot about station since they were taken private awhile back but that makes me wonder how mandalay bay is doing as well since they were taken private awhile back too. .

Thanks for that. You know way more about this than a lot of MMA blogs it seems. Isn't Station one of the most profitable casino chains at least before they went private? And since they cater to locals and not visitors that helps right?



anyhow....i would imagine UFC would just get sold to someone else if station needed money that bad. UFC would remain uneffected.

One thing to note…Station has always run 100% independently from the UFC (zuffa.) They have never had an event at a station casino. UFC is also worth more than a billion now. That’s a pretty big chunk of change.

Evan
11-11-2008, 12:23 PM
This pretty much wraps up the thread. Losses aren't near what some doom and gloomers reported.

************************************************** **

Station Casinos, Inc. recently announced the results of its operations for the third quarter ended September 30, 2008. Here is a summary of the results for the company for the Quarter:

-For the third quarter, the Company reported a net loss of $23.4 million as compared to net income of $3.7 million in the prior year’s third quarter.

-Net revenues for the third quarter saw a decrease of 10% compared to the prior year’s third quarter.

-Adjusted EBITDA for the quarter had a decrease of 13% compared to the prior year’s third quarter.

-Green Valley Ranch, just outside of Vegas, generated Adjusted EBITDA before management fees of $19.7 million, a decrease of 22% compared to the same period in the prior year.

-The Major Las Vegas Operations reported a net loss of $5.7 million for the third quarter as compared to net income of $17.8 million in the same period in the prior year.

At this point they seem to be looking for a bottoming out of the market so that things my pick up again, but the economic free fall gives them no relief in sight. They are probably looking at at least 2 more quarters of diminished performance due to the economy, possibly more. The performance of Station isn’t as closely tied to the Zuffa/UFC as in the past but it of interest to those that follow the sport. The excellent performance of Station in the Nineties and over the first half of the decade provided the Fertitta brothers a cash flush situation that allowed the underwriting of a fight promotion that lost upwards of forty million dollars.

2centsworth
11-11-2008, 12:40 PM
UFC is run independently and will continue to be profitable even in the midst of a recession. During tough times people turn to entertainment for relief. The only outside chance this has of affecting the UFC is that the owners become cheapskates and use the economy as an excuse. I can see them chasing away good fighters.

I can see the explanation, we footed the bill when the UFC was losing money. Now we need help.

Evan
11-11-2008, 02:18 PM
UFC is run independently and will continue to be profitable even in the midst of a recession. During tough times people turn to entertainment for relief. The only outside chance this has of affecting the UFC is that the owners become cheapskates and use the economy as an excuse. I can see them chasing away good fighters.

I can see the explanation, we footed the bill when the UFC was losing money. Now we need help.


100% agree.

The only reason I have even followed it is because it's likely at some point the UFC was used as collateral