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Is Steve v. Elaine All About Elan?

By Chuckmonster on Wednesday, 25th March 2015 10:50am
  » filed under Las Vegas  comments: 4


All Wynn, all the time this week. Yesterday, Wynn Resorts announced that they had submitted a competing bid for the New Frontier property, and believe that Elaine had knowledge that her nephew Andrew Pascal was angling to purchase the property at the same time. From SEC filing:

Over the course of several years, Ms. Wynn participated in Board meetings in which Wynn Resorts' plans to acquire property in Las Vegas were discussed at length. At no time did Ms. Wynn recuse herself from the Board discussions or inform the Board that her nephew was involved in a competing bid. Ultimately, the land that Wynn Resorts wanted was purchased by a group that included Ms. Wynn's nephew.

If they wanted the land, why didn't they buy it? They certainly had enough time to think about it. El Ad sucked out close to four years ago. Snoozing/losing. Moreover, didn't Steve say "I love that!" when referring to surrounding developments in the February earnings call? It doesn't take too many poker games before you learn Steve's tells. One of these is hyper-confident goofiness.

Today, Elaine "sets the record straight" on her involvement with Andrew Pascal's Élan Resort project via an open letter (Fight Letter II) posted to her website and an SEC filing:

At no time during company Board discussions of a possible land acquisition was I aware of any plan by my nephew, Andrew Pascal, to purchase that same land; the company’s charge to the contrary is a fabrication.

I wrote this when the New Frontier parcel deal was announced on August 4, 2014:

This. I fucking mean THIS folks. THIS. THIS right here is the reason why I LOVE the Las Vegas casino business. No hype, no adjectives, no bullshit financing or empty promises - just a crusher of a deal served with a side order of blood feud revenge.

Anybody know when the new Nick Hissom single is coming out?

Tagged: steve wynn   elaine wynn   andrew pascal   new frontier   elan resort   


Comments & Discussion:

Bullshit. They have already own all the land Steve could use with the golf course, and their properties stand to benefit from a dusthole adjacent being turned into a place for visitors on somebody else's dime. It makes little financial sense for them, as they'd not only buy empty land when they own plenty but then the onus would be on them to make it into something.

They probably know if they sue Pascal for jumping ship with "intellectual property" in his head that they'd lose. That's why they do this. They also do it because if Elaine has full control over her shares, she could sell and an investment firm could override Steve (this was also their argument against her the other year when she wanted out of the Okada accord.) And finally, it's also possible Steve would like to remove one last line of communication with his ex, but since it's revealed he privately gave her the heads up they were going to do this, that might be true.

Elaine can afford a protracted legal fight, and they have nothing on Pascal, so they're going to act like Elaine is Eric Schmidt and the Packscalibur is Android.

Meant to say "that might NOT be true."

I seem to recall Steve Wynn pretty saying he had no interest in the New Frontier site even when the owners at the time were throwing it at it.

This entire situation is a lot like what the board did to Kazuo Okada three years ago. The split with Okada involved a casino project in the Philippines and a lawsuit (Okada suing the company in regards to a donation to the University of Macau around the time the company was pursuing the concession for Wynn Palace.). Wynn Resorts hired the former head of the FBI to investigate Okada and the report made accusations of Okada "bribing" Philippine officials by covering their expenses when staying at Wynn properties (To the tune of $110,000.). Meanwhile, wasn't Wynn Resorts doing something along those same lines in Macau with that $135 million donation to the University of Macau? Hypocrites. A lot of the press releases coming from Wynn Resorts in recent weeks are very similar to the ones they released in regards to Okada.

It's a lose/lose proposition for Elaine regardless of how this pans out. If she wins her proxy fight, she's going to be sitting on a board that wished to oust her and will likely try their hardest to force her out. If she loses, she may likely be forced to sell her stake at less than ideal terms like Okada was forced to.

Wynn's stock value is down 47% from last year's high. The $4.1 billion dollar Wynn Palace is opening in Macao at the worst possible time, with Macao revenues down 20% from last year.

If Elaine wins this battle, will Steve be forced out of his own company for the second time in 15 years?

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