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Mar. 20, 2009
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Treasure Island sale gets final OK

Ruffin boosts upfront payment, will take over today

By HOWARD STUTZ
LAS VEGAS REVIEW-JOURNAL

Phil Ruffin, the new owner of the Treasure Island, stands by the hotel-casino Thursday.
Photo by Craig L. Moran

Phil Ruffin is doing MGM Mirage a favor, and it only cost him $100 million.

Ruffin, 73, who was approved Thursday by the Nevada Gaming Commission to take over Treasure Island from MGM Mirage, said he altered his deal with the casino operator.

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    • Instead of paying $500 million up front in cash, Ruffin increased the amount to $600 million. He will try to finance the remaining $175 million. If he can do that by April 30, MGM Mirage will discount $20 million from the agreed-upon $775 million purchase price.

    Ruffin was expected to take over ownership of the 2,885-room Treasure Island, originally built and operated by Steve Wynn, at 3 a.m. today.

    In December, when Ruffin's purchase was announced, MGM Mirage said it hoped to close the transaction by June 30. At the Gaming Control Board meeting on March 4, Ruffin said he hoped to close the deal by the end of the month.

    "They could use the cash, and we are happy to take over sooner," Ruffin said after gaming regulators spent about 30 minutes praising his return to the gaming industry after a nearly 20-month absence.

    "This is a breath of fresh air what you're doing here," commission member Dr. Tony Alamo Jr. told Ruffin, citing months of bad news about the casino industry.

    Ruffin is the former owner of the New Frontier. He sold the since-demolished property in July 2007 to New York-based Elad Group for $1.2 billion.

    "I wanted to accommodate (MGM Mirage) and we're getting in at a good time," Ruffin said. "The (NCAA) basketball tournament is going on, which is very good, and it will be good to get that summer business."

    Ruffin told the gaming commission that advance room bookings for April and May looked strong. He said business during January, February and March was "horrible."

    Ruffin said he was surprised that banks have been giving him some trouble in financing the remaining $175 million, even after his plans to put $600 million in cash into the purchase.

    "It's unbelievable, I've never seen anything like it," Ruffin said. "But we'll get it done."

    MGM Mirage, which said two days ago it received a two-month waiver from its lenders to avoid violating loan covenants but still may face a bankruptcy filing to restructure its $13.5 billion in debt, has been having liquidity issues.

    The sale of the Treasure Island will leave MGM Mirage with nine Strip hotel-casinos, but it will give the company much-needed cash for its balance sheet.

    "The Treasure Island is a positive development on two fronts," MGM Mirage Chairman and Chief Executive Officer Jim Murren said Tuesday. "Closing the sale sooner causes less disruption to our employees and we can get the cash quicker."

    MGM Mirage will run the casino's race and sports book for at least six months, but Ruffin will have access to the casino database of customers. He said he planned to retain all the Treasure Island employees, although Treasure Island President Tom Mikulich will step down. Mikulich will serve as a consultant for an undetermined period.

    Ruffin said he will be the new president of Treasure Island.

    "We've had an office there for a while and we're ready to go," Ruffin said.

    Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

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    Nick Santorro wrote on March 26, 2009 01:07 AM: Hey Phil, while you are at it, could you buy Stations too and save me??


    Hugh Jass wrote on March 21, 2009 07:08 PM: I hope they bring back Gilleys and the white trash to the Strip...


    Joe wrote on March 20, 2009 09:01 PM: Big deal, all the rich guys playing monopoly. Who really cares??


    Dee Wade wrote on March 20, 2009 05:39 PM: Yea....another independently owned casino! The big corporations have ruined the casinos in Vegas....it's all about greed and taking care of the BIG players.


    Ken wrote on March 20, 2009 03:57 PM: GladK -- Ha ha. You think that is sleazy? You probably shouldn't be near this city. For that matter you should probably just go back to Arkansas.

    Great news for Ruffin. If anyone is on the fence about going to the Strip, hop off of it and go to TI. We need to show our support to a guy who really does care about the customer. He's like Randy Black except with money.


    clyde wrote on March 20, 2009 03:26 PM: I have not been to a casino in a year but if Mr. Ruffin is anti corp. (meaning not corp. slime) I will drop my cash at the new T.I.


    American Gaming Guru wrote on March 20, 2009 12:45 PM: Go get em Phil!


    David wrote on March 20, 2009 12:14 PM: "Closing the sale sooner causes less disruption to our employees and we can get the cash quicker."


    Explain to me, Jim Murren, how this would cause less disruption for TI employees and since when did you give a rats a.. about the employees?


    MrSteep wrote on March 20, 2009 11:40 AM: I hope this is the first nail in the coffin of the corporate thugs and their greedy and incompetent managers. Oh,they're good at siphoning off the cash to send it out of Nevada.
    Mr Ruffin appears to be a gentleman and more importantly a great employer.
    Good luck,sir


    GladK wrote on March 20, 2009 10:10 AM: Hey Phil, bring back the original Pirate Battle! Seriously, it used to be charming & cute, and a real crowd-pleaser. Now, watch people's reactions, and many turn away muttering, "what was THAT mish-mash all about." Not to mention, families show up, not realizing its sleaziness is entirely inappropriate for the kids. Watch videos of the old show versus the new, and you'll agree the original was better.


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