If you live in the Las Vegas area, you’ve been exposed to the months-long “We Love Locals” ad blitz with which Station Casinos has been attempting to shore up its image. The company’s heedless expansionism, exorbitant executive salaries, its LBO and consequent bankruptcy, suspension of 401K matches, outsourcing of jobs, etc., caused Station to be perceived as having gotten too big for its britches. Hence the new, kinder, gentler Station, one that no longer stresses high-end nightlife but bargains and slot payouts. Las Vegas Advisor‘s coupon book swells with more (and more-liberal) offers from Station and its affiliated properties.
But the lovefest has taken a different and — just in time for Halloween — creepy turn in the last week or so. In a pair of TV spots that the company hasn’t yet posted to its YouTube channel, Station no longer wants us to know it loves Las Vegans. Now it’s demanding our love in return. A maudlin, education-themed spot whinges on about CEO Frank Fertitta III‘s heart breaks for the plight of little school children who don’t have books and supplies. In another, Fiesta Henderson‘s director of slots, Vincent Barile (looking unshaven and totally stoned), extols the selflessness of Frank (below) and Lorenzo Fertitta who “could have walked away” after they ran the company into a ditch (of their own digging) but instead chipped in $200 million “to save … jobs.”
They saved jobs all right — their own. Those 200 million clams bought them an extra 22% of the company (bringing their ownership stake to 46%), which is a bargain as good as any you’ll find at the Feast Buffet. Seriously, when was the last time in which you saw a company file Chapter 11 and not only was no one in management held accountable, the principal actors nearly doubled their ownership stake? Approximately never, I’d reckon. Leaving aside the Fertitta family’s well-renowned generosity to Bishop Gorman High School, if Frankie and Lon were really so gosh-darned concerned for the welfare of the community, instead of chilling at Frank’s $28 million Orange County crib they’d have been lobbying for better funding for Nevada‘s schools.
They certainly wouldn’t have taken on billions of dollars of debt — and debt-servicing — that were certain to kneecap the family firm and force austerity measures. You’d have to be coked out of your mind to have thought the LBO would do otherwise … or whatever drug Wall Street was guzzling during the “hot money” years of 2004-07.
Modesty and self-effacement are traits rarely found in casino-industry executive suites. But not even Sheldon Adelson at his most solipsistic has trotted out Venelazzo employees to strum their harps and sing odes to his munificence on TV. It’s clear that bankruptcy hasn’t shamed the Fertitta Brothers one iota. To quote the one good line from an otherwise worthless movie (Gamer), “On a personal note, that shit is fucked up.”
Speaking of Sheldon, his arrogant and tantrum-prone conduct has snared him a spot within CityLife‘s “Web of Evil.” Steve Wynn‘s quarterly anti-democracy, pro-authoritarian screeds could just as easily have made him the specter of choice but he’ll have to settle for an umpteenth rereading of Atlas Shrugged instead.
I have seen other posters talking about the swell in comps that they are showering all over Las Vegas. It appears that they are trying desperately to buy business. Buying business is not usually a good business plan and generally puts downward pressure on financials. It makes it quite easy for Station to do now that they have virtually no debt by putting the screws to their creditors. On the contrary, I would argue that Boyd’s joints are recovering in no small part due to the fine reputation of their “gentle giant” of a Chairman and continued good treatment of employees, customers and the community without selfishly flaunting it.
Dave, what, no gratuitous mention of the out and out hijacking of Colony Capital, courtesy of the US Bankruptcy Court and the Fertittas? Not to mention the Court curious decision not taking Boyd’s offer seriously, nor anyone outside the interested parties seeming to care?
After all, you found a way to slam Shel again (though I can’t say I blame you for that). You had a chance to go for the trifecta here, and you dropped the ball. I’m disappointed lol.
Going back to Stations, if they really cared about local youth, they would actually do something about keeping minors off the property. Texas and Fiesta Rancho are laid out as nothing more than attractive nuisances for kids. The food court at Texas is a kids hangout, and I’ve seen parents walk their kids through the casino at Fiesta because it’s the most convenient way to the to the ice rink.
Moreover, Las Vegas boasts the highest teen suicide rate in the country. If the Fertittas really cared about the kids, they would partner with those organizations who are advocates for local youth and teen suicide prevention.
In light of the gift the USBC gave them last year, perhaps a little more humility, and more action and less talk regarding charity is in order, you’re 100% correct.