Two Way Hard Three | Las Vegas Casino & Design Blog

February 18, 2010

Green Valley Marriage Heading For Divorce?

Posted by Hunter

I see a lot of stories fly across my various feeds. Rarely is one as juicy as this, if the allegations from GCR Gaming (Greenspun owned, GVR 50% owner) are true.

http://www.lasvegassun.com/news/2010/feb/18/disputes-erupts-between-green-valley-ranch-partner/

To distill, they're alleging that Station is diverting all the good stuff (customers, vibes and apparently cuts of beef) to their other, 100% owned facilities like Red Rock, away from the '50 cent piece' that is Green Valley Ranch.

It's starting to get fun to watch this one.


Categories: Station Casinos


Comments

Read archived comments (5 so far)
February 18, 2010 7:51 PM Posted by atdleft

I knew it. Station is going bye-bye. The Greenspuns now want out of the partnership with Station for GVR. How much longer before they also want to kick Station out of Aliante?

And I'm sure the folks at Boyd are really licking their chops over this...

February 19, 2010 6:29 AM Posted by Dave

Interesting, because Red Rock has been open for nearly 4 years. Is having essentially the same company manage wholly-owned and JV properties in the same market an invitation to these kind of charges? If so, you've got to wonder what Dubai World will make of MGM's assertion that CityCenter is driving foot traffic to Bellagio. That's great for the company, but where's the line between "driving foot traffic" and "diverting all the good stuff?"

February 19, 2010 11:06 AM Posted by Jeff in OKC

Depends on how much profit they're making and how greedy they are, I guess. I'd venture that some arrangements that were OK in 2007 are a big problem now that the money has tightened considerably.

February 19, 2010 3:37 PM Posted by atdleft

Jeff-

Good point. In 2007, Station thought it was on top of the world (at least, the world of locals' casinos) and the Greenspuns were out conquering Las Vegas parcel by parcel. But now, the Greenspuns are in a world of real estate trouble and Station... Well, we all know that Station is in deep sh*t.

Dr. Schwartz-

Good question... But in MGM Mirage's case, I don't think they even have to do that. So far, it's looking like high-rollers and big spenders are already moving back to Bellagio while Aria keeps cutting rack rates. Dubai World can't blame MGM Mirage if "the good stuff" are already going back to Bellagio on their own.

February 22, 2010 11:25 AM Posted by David McKee

Bellagio has been steadily gaining the upper hand on Aria in room rates over 1Q10, so I'd say a "market correction" is taking place. The notion that CC is creating business for Bellagio sounds like PR malarkey to these ears.

Re: Greenspun vs. Station, I keep wondering if this is a ploy by the 'Spuns to get Station to buy them out. Greenspun is hurting badly and the Fertitta lads just sold a big chunk of UFC to Abu Dhabi, so they presumably have the cash. But if Greenspun wants to hold onto GVR, who enters the picture as management company? Boyd? Isle? Blake Sartini's outfit? (Just kidding about that last one.)