From the New London Day via Pechanga:
The Mohegan Tribal Gaming Authority reduces stipends to tribal members when changes like the current economic downturn warrant it, casino officials told the financial community today.
Mohegan Sun also has a stable management team that is continuing to work to improve the product it offers patrons, despite the effects of the recession.
Casino officials made the comments this morning during a Webcast presentation at the Bank of America Merrill Lynch 2009 credit conference in New York City. Participants in the Webcast included a broad range of members of the financial industry.
The tribe’s Mohegan Sun casino is one “you could put anywhere and it would be a category killer and a market leader,” said Mitchell Etess, the casino’s president and chief executive officer.
“We’ve been constantly evolving our product … trying even in this (economy) to keep things fresh, keep things going.”
In touting that stability, Etess differentiated the Mohegans from their neighboring competitors, the Mashantucket Pequots. The Mashantuckets own and operate Foxwoods Resort Casino and MGM Grand at Foxwoods.
“We have been very cautious to make everybody know we’re not Foxwoods,” Etess said. “We operate differently than Foxwoods.”
The Mashantuckets are struggling to restructure debt and could default on loans. Tribal members recently ousted Tribal Chairman Michael Thomas, whose promise to keep tribal stipends intact before lenders were paid sent shock waves through the global financial community.
Mohegan Sun is also hurting from the recession but its balance sheet is strong, Etess said. Net revenues were down 12 percent year over year and overall revenues are down 7.5 percent, he said.
Peter J. Roberti, vice president of finance at the casino, pointed out that the tribe, whose 1,700 members get monetary distributions from casino revenues, reduces that take when necessary.
“The tribe is making moves to reduce their expenditures, and taking a look at the stipends and taking less out of the Gaming Authority,” he said.
Tribal Council Chairwoman Lynn Malerba later clarified that Mohegan Sun is always evaluating financial performance. She said the tribe made reductions last year to tribal government, but it did not reduce individual stipends.
Etess said, “Our tribe understands the situation; what happens when money gets shorter. Our tribe shows what happens; they take less money.”
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