MACAU BUSINESS
Slowly, the details of Steve Jacobs’ dismissal from the job as Sands China’s CEO are becoming clearer. Mr Jacobs “went out because he was here for a particular purpose [implement a cost cutting programme]; he
The Jacobs’ job
accomplished that purpose and then it was difficult to see how he would grow the business from where he was,” the company’s acting CEO, Mike Leven said. While that may be the official line, there is more to Mr Jacobs’ dismissal in July. He was handed the
responsibility of hiring the two new top executives to lead gaming and non-gaming operations. Those positions were empty for “six or seven months” and were filled just a few days after his dismissal. Several résumés were given to Mr Jacobs, Mr Leven said. “At the end of the day, he didn’t feel they were appropriate, or didn’t want to feel they were appropriate,” he
said. “It was symptomatic of a certain style of management.” “I wouldn’t say it was the reason [for Mr Jacobs’ dismissal] – there was no single reason – but it was part of
the package that caused the discomfort in the relationship.” Mr Jacobs’ comments on the opening of casinos in Japan were also part of the souring relationship. Sands
China’s chairman Sheldon Adelson criticised the comments since that was an area not under Mr Jacobs’ jurisdiction. “That came up towards the end. I don’t think that particular statement was at any time a significant reason,”
said Mr Leven. Mr Sisk’s and Mr Tracy’s résumés were not among those given to Mr Jacobs, according to Sands China´s
acting CEO. “We were fortunate to find both reasonably quickly when we knew that the decision on Mr Jacobs was going to be made,” he said.
and in an environment where we have a higher degree of cultural sensitivity.” An Asian candidate would be perfect, Mr Leven added.
The non-gaming man While waiting for his future permanent CEO, Sands David Sisk
China’s new president and chief operating officer, Mr Tracy, has a clear vision for the future. “We want to change the perception”
that Sands China is just a gaming company,” he said. “It is an extraordinary experience as an operator to have a set of assets like these, with comprehensive integration of everything nearly any traveller could ever want. So, what we intend to do is to find ways to more effectively communicate all those assets to all the different market segments.” With more than 20 years of hands-on
management and development experience in the gaming and hospitality industry, Mr Tracy first came to Macau in 1989. He admits he was among the sceptics when he first heard Las Vegas Sands’ plans for Cotai and he agrees that maybe the company was slightly ahead of its time. “But as time goes by, we will have the
opportunity to start filling the assets we built, which are ahead of the curve, probably by four or five years in a normalised economy,” he said. After rapid expansion, he noted Sands China has “to become more of an operating company.” In his vision, that also means further
24 OCTOBER 2010
cooperation with the competition to increase critical mass, especially in Cotai. “We need to work in cooperation with the other hospitality companies here and make sure the infrastructure is in place so when the guests arrive, the experience is great from the minute they step off the plane. I don’t think we are quite there yet,” he said.
Shuffling the deck Mr Sisk, Sands China’s new gaming head, also
knows Macau from before the handover and understands the importance of VIP players in this market. He rejected media reports the company was looking at reversing its direct VIP model, which represents around 20 percent of its VIP business. “Our mix is to get as much business as we can from both sides,” he said. Like a poker player, Mr Sisk carefully measures his
moves and words. “My piece here over the next few months is to try to learn as much as I can and then develop a strategy,” he said. He stressed he is not blindly focused on
increasing Sands’ slice of gross gaming revenue. “I don’t view market share necessarily as a good or bad thing. It is just one metric,” he said. “I want to maintain the incredible levels of profitability that we have seen so far.” That may be affected by government restrictions
on the number of new tables, limited to 5,500 until 2013. “We need to re-evaluate and position the tables in the right resorts. And go back and modify that, perhaps each year or over a period of six months. That is a continual process, it is itinerate, it is constantly evolving in what you do here,” he said. Just as in “The Three Musketeers”, this is a story far too juicy to condense into a single volume.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54