How the Fertittas Ruined Their Father's Business

Not that old man Fertitta was any saint, but he didn't blow his cash on scams and lip-flapping pinheads like Dana White. In the report below (which I found on Eddie Goldman's website), you'll note a point-by-point

This content is protected

The Fertittas are doing this to MMA too




​

outline of just how Lorenzo and Frank Fertitta scamed their father's business into the ground.Moreover, we should see obvious parallels between their gambling business, "Station Casinos," and their fight promotion business, Zuffa. Even while Station Casinos was raking in record profits the asinine, juvenile Fertitta brothers were filling their pockets and using their excess cash up on bad investments. Isn't this exactly how it is with zuffa? They keep 99% of profits from the PPV, then waste it on ship-sinkers like Xyience, Tapout clothing (which has fad written all over it) and total leeches like dana white.
Do we really need to kill zuffa? Won't the Fertittas kill it like they did Station Casinos? Read the report.



Press Release from Culinary Workers Union Local 226:Report Shows Station Casinos Insiders, Not the Recession, Drove the Company into Bankruptcy: Labor Union Calls on Company Creditors to Demand Significant Equity Investment from Insiders
Las Vegas—In light of the Chapter 11 bankruptcy of Station Casinos, Inc., the Culinary Workers Union Local 226 is calling on creditors to demand a significant equity investment by insiders, who have amassed over $1 billion from the company. According to an analysis released by the union, the company could have averted bankruptcy if not for the substantial debt it took on largely to enrich a small group of company insiders. The report examines how this debt enabled insiders to extract over a $1 billion from the company in recent years and that these insiders, not the global recession, drove the company into bankruptcy.
Station Casinos is a major employer in the Las Vegas Valley, many of whose over 13,000 employees are family members or friends of Culinary Union workers. The union’s members, as well as the larger community, are rightly concerned about the continuing uncertainty over the future of the company and its impact on Las Vegas.
“Station Casinos is a uniquely Las Vegas company that owes it success to Las Vegas locals like our members,” said D. Taylor, Culinary Workers Union Local 226 Secretary-Treasurer. “The company has a special obligation to our community. Its owner-managers have a responsibility not just to their Wall Street lenders and investors, but to their employees, customers, suppliers, and vendors right here in this community. The livelihoods of a lot of people and their families are closely tied to this company’s financial well-being. Clearly, the owner-managers and other insiders were more interested in extracting wealth from the company for themselves than ensuring its and its employees’ future. Now it’s time for them to give back.”
The report shows:
· Company insiders, led by members of the Fertitta family, nearly tripled the company’s long-term debt load between 2005 and the end of 2007 from $1.9 billion to $5.2 billion.
· Of the new debt incurred during this period, more than two-thirds was used to buy back shares and to complete a management-led buyout, both of which significantly benefited a small group of insiders.
· In 2006 and 2007, the company borrowed $990 million to buy back 14 million in outstanding shares. This was the true cost of the company’s stock compensation program over the previous years, which had been described by an independent proxy advisory firm as “the most expensive and liberal we have reviewed” and an “excessive transfer of wealth” to insiders.
· In 2007, the company took on $1.6 billion of new debt to complete a management-lead buyout. More than $660 million – or 40% – of the proceeds went to company insiders. The Fertitta family received $495 million alone as a result of the buyout.
· If the company had forgone these two non-productive transactions – the share buybacks and the buyout – it

This content is protected

Frank gets the top bunk




​

would have $2.6 billion less debt, significantly less interest expense, and could have averted bankruptcy.· Since 2001, company insiders received more than $1 billion in executive compensation and from the buyout even as they led the company down the path toward bankruptcy. In contrast, other stakeholders in the company have had to suffer the consequences of their financial mismanagement. Not only is the company in Chapter 11 reorganization under the bankruptcy code, the company stopped matching employees’ 401(k) contributions, more than doubled PPO health care premiums for rank-and-file workers, slashed shifts and cut hours for workers, and terminated hundreds of long-time employees by replacing coffee shops with subcontracted restaurants.
The Culinary Workers Union, Local 226, an affiliate of UNITE HERE, is the largest local labor union in the gaming industry. The Culinary represents approximately 55,000 casino and resort workers on the Las Vegas Strip, in downtown Las Vegas, and in downtown Reno.
For a copy of the report please contact Ken Liu at 702-387-7001 or

This content is protected

.

This content is protected

 

You should take MMA more seriously.

Grow up. Kill zuffa.

 

I don't care if they have gay orgies either. They are horrible people. I start to care when their corruption and criminality ruins everything about MMA.

Here's a question: why don't you care about fighters' rights, and about the best fighting the best (a paid-off blogger's rankings don't count: get it?), i.e. competition. Why do you take the side of the Fertittas? Because it's easy? Grow up. You're obviously not a right-wing lunatic. You just need to realize sport is political.

I do criticize other big business, all the time. You want me to talk that over on an MMA fourm.

Just read the damn list. The fertittas ruined their own fathers' business. If you have a counter then you better throw it. Stop complaining because my punch hit you in the face.

 

More or less, you're why mma is not a sport yet.

Grow up kid. I'll son you myself if I have to.

 

But you don't take it seriously. Now, tell us how Glenn Beck should be president, you right-wing jerk off.