Sunday, July 05, 2015

Gary Loveman out at Caesars Entertainment

July 1, 2015 marked the end of an era for Caesars Entertainment as CEO Gary Loveman stepped down and new CEO Mark Frissora took over. Loveman will stay on as the company’s chairman.

It's been a rough few years for Loveman as the company has slid into a partial bankruptcy, but was it his fault?

Las Vegas fans love to pile on Loveman for not maintaining properties, and buying new hotels when the company didn't necessarily have the money (Planet Hollywood). Las Vegas wasn't actually the problem though.

The real problems for Caesars were:

Not being in Macau: During the economic downturn the other Las Vegas companies were able to lean on the success in Macau to help stem the tide in Las Vegas. Caesars didn't have that luxury.

Atlantic City and regional weakness: Having many properties all over the country was a blessing during boom times, but it was a curse during the downturn as Atlantic City and other regional markets got crushed. Caesars had to take the brunt of this unlike the other big Las Vegas companies.

No one will feel sorry for Gary Loveman and his golden parachute, but he was facing some unique obstacles that were tough to overcome.

While people criticize what he did in Las Vegas, The Linq and The Cromwell turned out to be good remodels, and the High Roller will definitely be a staple on the Vegas skyline for years to come.