STATESIDE
Katrina along the Gulf Coast in 2005, Super Storm Sandy along the Mid-Atlantic coastline – where I live – in 2012 or a myriad of other natural or man-made catastrophes. Who can forget September 11, 2001? Fortunately, we have not yet experienced a health crisis that brought commerce to a grinding halt. Everyone suffers and casinos take a huge hit. They are among the first to feel the pain because gaming, like other leisure industries, is a non-essential pastime. It takes a strong leader to overcome this destruction and quickly rebound, but is disappointing when conditions take longer to improve or never do. We’ve seen both. Hopefully, strong, smart management will help alleviate this global emergency. Speaking of leadership, the gaming industry is losing
two high-profile success stories to early retirements. Former Penn National CEO Tim Wilmott and MGM Resorts International Chairman/CEO Jim Murren have chosen to move into the next phases of their lives. Read my feature in this month’s issue to hear about
more smart executives. I profile four CEOs, including Tim Wilmott before he retired. Each offered fascinating commentary. Why would these two superstars leave such big jobs? At
61, Wilmott retired on December 31 to fulfill a longtime promise to his wife. I have listened to him on industry panels for years and consider him a responsible, grounded guy. I’m sure he thought this through very carefully to fully enjoy his retirement. Murren, 58, will slowly transition this year while the MGM Board chooses his successor. He joined MGM in 1998, becoming CEO in 2008. Murren will be just fine too, thanks to big money coming his way. Imagine this… according to public filings with the Securities Exchange Commission, Murren will collect $31.9 million in salary, bonuses, stock, severance and monthly consulting fees through the end of 2020. Starting on January 1, 2021, Murren will become a “senior advisor” to MGM, earning another $6.9 million. That doesn’t include his salary/bonuses for these past many years. However, Murren has had to survive a tumultuous 2019.
To cut costs at MGM, more than 1,000 employees were laid off and several veteran executives took early retirement buyouts. I know what you are thinking. There was no money for the employees, but tens of millions for severance packages? I have no explanation.
Last October, MGM paid $735-$800 million to settle litigation with victims of the October 1, 2017 Mandalay Bay shooting. Called the worst mass shooting in American history, 58 people died and hundreds suffered injuries. Finally, MGM was sued last year because a data breach
affected 10.6 million hotel guests, including celebrities, chief executives of technology companies and other customers. MGM acknowledged it “discovered unauthorized access to a cloud server that contained a limited amount of information for certain previous guests.” To give him his due, on balance, Murren has also
overseen multiple accomplishments in 11 years as CEO. The giant City Center complex on the Strip debuted in Las Vegas in 2009, Maryland’s $1.2 billion MGM National Harbor opened in 2016 and the $960 million MGM Springfield in Massachusetts premiered in 2018. MGM also purchased casinos in Ohio and New York last year. Professional sports have also exploded in Las Vegas, thanks in part to Murren’s advocacy. The Vegas Golden Knights hockey team first played in 2017 and a new stadium will welcome the Raiders football team in September. That will bring fans and bettors to town. Finally, it was only a matter of time before betting
extended beyond sports. This year, New Jersey customers’ $380,424 wagers on the Academy Awards in Hollywood was half of their 2019 bets. It seems you still need an appealing product to excite players. The audience, their lowest ever, decreased by six million. The Oscars just don’t excite people anymore. Count me in that turned-off group. The once glamorous telecast has become a lecture series where many winners promote their personal political and social agendas. Who cares about their opinions? Not me.
MARCH 2020 11
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