Latest Stories

Solaire management firm sacked


The group of businessman Enrique Razon Jr. is now locked in a bitter dispute with the Las Vegas-based management firm it contracted to run Solaire Resort & Casino.

In a disclosure to the Philippine Stock Exchange, Razon’s Bloomberry Resorts Corp. said it had scrapped its management services agreement with Global Gaming Philippines LLC (GGAM), citing the latter’s “breach” of their management services agreement (MSA).

As a consequence, Bloomberry also sacked Solaire’s chief operating officer Michael French, GGAM’s official representative .

But GGAM fought back by bringing the case for arbitration, claiming that it was Bloomberry that was guilty of a breach of the MSA.

Shares of Bloomberry fell by 1.79 percent to close at P12.08 per share on Friday as the market anticipated that GGAM, which has an 8.7- percent stake in the local gaming firm as part of a management incentive package, may soon unload its stake following the termination of its management contract with Razon’s group.

In explaining the alleged “breach” of the MSA, Bloomberry said: “GGAM has not spent any material time in attending to the management of Solaire and has failed to perform its obligations and deliverables under the MSA.”

“However, many members of the existing management team are very capable and will continue to manage Solaire effectively without GGAM and its representative,” the company said.

GGAM is a unit of a Las Vegas-based casino investor, developer and manager of casino properties. It also operates in Macau and Singapore.

“The Bloomberry termination of its contract with Global Gaming was an unexpected development. It suggests that the team that Bloomberry had assigned the task of Solaire’s management and global marketing wasn’t doing its job and may reveal that the operating/financial performance of Solaire has been below expectations. Bloomberry now has a tough task of hiring a new casino management that will help the company achieve the original objectives set for Global Gaming,” said Jose Mari Lacson, head of research at Campos Lanuza & Co.

“The termination should also have some unexpected benefits such as savings on performance incentives promised to Global Gaming, as well as costs like a potential share overhang since Global Gaming does own an estimated 8.7 percent of the company through Quasar Holdings. Since Global Gaming is no longer an investor in Bloomberry, it may sell this stake into the market,” Lacson added.

But company sources said while this development may prompt GGAM to unload its stake in Bloomberry, concerns on the shares overhang may be “exaggerated” as the management company was not likely to sell everything on the board.

At the same time, the source said there was enough demand for Bloomberry’s shares that the company would not even need to buy back those shares.

Under the terms of the MSA, GGAM provided planning technical and other advisory services to the Solaire Manila project during its construction and fit-out stage and was supposed to provide management services during its commercial operation. Bloomberry was to pay GGAM 2-6 percent of the earnings before interest, taxes, depreciation and amortization (Ebitda) generated by Solaire Manila, including local high roller table games.

A separate “incentive fee” was supposed to be given to allow GGAM to be paid a graduated fee for achieving certain Ebitda thresholds in relation to foreign high roller tables and junket players.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , gaming industry , global gaming Philippines LLC , management services , solaire resort & casino

  • OFW_Investor

    Gaming is a profitable business, even with the non performing Senior Management , Solaire’s revenues is huge and profitable last quarter. From “VEGAS BABY” its now “PASAY BABY”.

  • Littlefox131

    Overpromise, Underdeliver.

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Malaysia, Flight 370 relatives talk financial help
  • Celebrating Easter and creativity in New York
  • Man wins half marathon, dies in Argentina
  • Clouds to bring slight relief from summer heat
  • Canadians rally to legalize marijuana
  • Sports

  • Reigning champs Miami open playoffs with win
  • Spurs subdue Mavericks in playoff opener
  • Wawrinka beats Federer to win Monte Carlo Masters
  • Ageless Hopkins pitches 50-50 Mayweather deal
  • Goodbye MGM, Las Vegas for Pacquiao?
  • Lifestyle

  • Miss America: Don’t suspend teen over prom invite
  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Entertainment

  • ‘Captain America’ stays strong atop US box office
  • Easter musings
  • Solenn in shorts
  • Unmerry mix of attention-calling moves on ‘Mini-Me’ TV tilts
  • Persistence pays off for The 1975
  • Business

  • BDO seen keen on bidding for Cocobank
  • Bataan freeport investment pledges up 1,302%
  • Golden Week
  • Bourse to woo Cebu stock mart investors
  • Supper power
  • Technology

  • Nintendo’s trailblazing Game Boy marks 25th anniversary
  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • Obama on mission to quiet Asia skeptics
  • Search for Etihad passengers launched
  • Japan presents $57-B ‘dream plan’ to solve Metro congestion
  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Marketplace