In a message dated 2/27/2003 10:12:14 AM Pacific Standard Time,
vpFREE@yahoogroups.com writes:
I really have to wonder at any claim that the HR is
losing money. That place is filled with lots of
people with very little gambling savy and lots of
money. In other words, young, affluent males, who
seem to be either fairly good at gambling or very bad
at it, mostly bad, with not many in-between.Gross mismanagement or skimming seem to be the
only 2 reasonable explantions.Of course, this is probably good news for us.
Some heads are going to roll (again). The new
temps can't really do much more damage. The
Hard Rock has had a tradition of constantly
changing the way they run things. If they
really are losing money, these changes will
accelerate.
What you see on the outside isn't all it seems to be.
For instance, the Hard Rock Cafe and the Hard Rock Hotel and Casino which are
located on the same corner at Paradise and Harmon are owned by two different
corporations.
Peter Morton is one of the original founders of Hard Rock. Can't remember the
others. Over the years, this group that founded HR, also had a hand in
founding Planet Hollywood and House of Blues. Like most rock bands, there was
a lot of infighting which caused a lot of breakups.
To a make a long story short, one of the breakups split the Hard Rock
property up so that Peter Morton has Hard Rock Hotel and Casino and another
group (believe the other founders sold out) has the Hard Rock Cafe and also
all the hotels built or to-be-built elsewhere. If you ever wondered why you
couldn't get a comp at the Cafe, now you know.
HR has a new president. I think the predecessor bugged out to play in a
larger pool after getting pub for himself (and HR) by bringing in a lot of
name events (The Who, Rolling Stones) which garnered a lot of recognition but
probably put HR deep in the red even with $1000+ ticket prices. Another
reason for this spate of spending was to keep up with the pub that the Palms
was getting.
I doubt if the quarter positive VP had much effect on the bottom line but
everybody's in a belt-tightening mood so they're cutting wherever they can.
In general, organization losses due to ego are much bigger than operational
losses but you won't get any organization to admit it.
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