View Full Version : "You're mired..."

11-22-2004, 11:29 AM
in debt..Donald Trump, was trumped in Atlantic City. for the second time, Trump Casinos filed for BK protection. I see this as a win for Steve Winn, "the Donald"'s major competitor in that market

Cueless Joey
11-22-2004, 12:36 PM
I didn't know Steve Wynn has casinos in Atlantic. He sold Mirage and Treasure Island a few years back in Vegas.
How can Trump be in debt for over a BILLION dollars and only have a million plus in assets??????

11-22-2004, 01:16 PM
Joey, I read about the "Casino Wars" in Atlantic City, years ago.
From the NY times:
The bit about the ceiling tile crashing down and water cascading to the floor in the middle of the reporter's visit is absolutely priceless. Now if a spokesperson had just been saying words to the effect that the casinos are the best-maintained in the city, with huge budgets for preventative maintainence, this would have been (former) Iraqi information minister funny.

Anyway, these stories just show the general sheep mentality. To hear the papers say it, last week, Trump was at the helm of a glittering casino empire, but today, his properties are crumbling into dust. And where was any of this sudden critical sense of the limitations of the Trump casino properties when, about two weeks ago, Trump was announcing a plan to build a high-rise hotel across from Wynn Las Vegas? People took that bit at face value with absolutely no questioning of where he would find the money, or any look at his track record in Atlantic City.

There is balance in the universe, and I think that it is more than coincidental that, around the same time that the Donald filed for bankruptcy, the "Wynn" signature at the crest of Wynn Las Vegas was lit up. For me, it's no big deal seeing a casino mogul's name in lights; I grew up about two miles from the gigantic red TRUMP on top of Trump Plaza. Still, I love the symbolism of Steve Wynn literally putting his signature on the Las Vegas Strip.

Here's a "bio" on Steve:
Steve Wynn is one of the prime builders of today's Las Vegas.

In the 'employee only' areas and offices of the Las Vegas casino-hotel industry, any conversation that includes the name of Steve Wynn will also include as many opinions of the man as there are folks involved in the conversation. The range of comments will run from derrogatory to very complimentary. This has been the case since shortly after he took over the Golden Nugget and made it the star property of the 'downtown' casinos in the late 70s - early 80s.

Born in 1942 to a father who ran bingo parlors in the northeast, and raised in Utica, New York, Wynn graduated from the University of Pennsylvania in 1963. He and his wife, Elaine, arrived in Las Vegas to live in 1967.

He worked as a slot and keno manager in his early days here, then, with banker E. Parry Thomas as a mentor, he pulled off a land deal with Howard Hugh and Caesar's Palace in 1971, that got him enough money and influence to pull off the the coup that got him control of the Golden Nugget. Before the end of the decade, he brought the annual profit of the Nugget from a little over one million to twelve million. During that period, the nugget was beautifully renovated and enlarged.

Wynn built another Golden Nugget in Atlantic City in 1980. By 1984, he was estimated to be worth about one hundred million dollars. In 1986, he bought the large piece of land next to Caesar's Palace, across the Strip from the Desert Inn. He then sold the Atlantic City Nugget for a reported four hundred and forty million and used much of the money on the dream resort, the Mirage, in 1989. The three thousand room Mirage was the first major resort built on the Strip since the original MGM Grand (now Bally's) at Flamingo Road and Las Vegas Boulavard.

The 90s saw Wynn build the Treasure Island next to the Mirage and another 'dream', the Bellagio on the corner of Flamingo and the Strip on the site of the demolished Dunes. Bellagio was luxury and class added to the Strip. Mirage and Treasure Island were major contributors to the 'family Las Vegas' image that the casino industrywanted to build. The three resorts also brought three free attractions to Strip strollers, Mirage's volcano, Treasure Island'spirate ship fight and Bellagio's dancing water show.

The building of the Mirage has stirred many others to build and renovate on the Strip. The new MGM, the Excaliber, Mandalay Bay all went up. The Strip went through a major change in the 90s. Steve Wynn may have well been the major player in that change.

The new century saw the MGM/Mirage merger take place and Wynn was out of the business. He had done well in his thirty three years in Las Vegas up to that point. He had been partially responsible for the tremendous growth of the Las Vegas Valley's population and building boom. He had created thousands of jobs. He raised two daughters, one of which was kidnapped in the early 90s. Wynn paid the one million, four-hundred and fifty thousand dollar ransom, securing her safe return, and saw the kidnappers later sentenced to long prison terms.

Wynn bought the Desert Inn property, and he promises his biggest dream ever, Wynn Las Vegas.The resort and golf course should open in April 2005 at a cost of over two and a half billion dollars. What will Steve's new dreams do to this town?

11-22-2004, 03:19 PM
<blockquote><font class="small">Quote Cueless Joey:</font><hr> http://moneycentral.msn.com/content/invest/extra/P101253.asp?GT1=5809
I didn't know Steve Wynn has casinos in Atlantic. He sold Mirage and Treasure Island a few years back in Vegas.
How can Trump be in debt for over a BILLION dollars and only have a million plus in assets?????? <hr /></blockquote>

The casino business represents only 1% of Trump's net worth.

The bankruptcy deal relieves Trump Casinos of $100,000,000 in annual interests. Trump reduces his ownership stake in the company from 47% to 27% of the shares, but is still the largest shareholder and still retains control as CEO. It's a sweet deal for Trump because it frees up capital for improvements and increases profits for shareholders.

When you borrow $10,000 or $1,000,000 you are just another customer, but when you are in debt to them for a billion you're a partner. Trump has always known this and has used it to build his empire.


Cueless Joey
11-22-2004, 04:07 PM
Thanks Wolf.
I read about Steve's story on Time magazine as well.
If you ever watch Rush Hour 2, the building they blew up in that one supposedly was a bankrupt hotel casino ( I believe it was El Rancho) that Wynn bought for his wife. His wife is opening a casino there according to one local in Vegas I met.
Steve's a legend by now in Vegas.