Snyders SIx Flags "sinking fast"
 

Redskins owner Dan Snyder had a little better year on the football field than as a businessman.



According to SEC filings, Snyder and his Red Zone hedge fund have poured some $50 million into his purchase of amusement-park operator Six Flags. Two years ago, when Snyder began building his stake in the company, it traded near $12 a share. In mid-November, after the company missed Wall Street expectations, the stock dropped to $1.91 and has mostly stayed there.

Securities lawyers say that a share price that low creates a perilous situation for Snyder. MarketWatch, among other business media, speculated that the company is “distressed” and listed it among those that may have to file for bankruptcy in 2008.

Should the stock price drop below $1, the stock exchange might be compelled by rule to delist it—which would affect its credit agreements and might send its other investors, such as Bill Gates’s Cascade Investment, running for the exits.

If Six Flags doesn’t begin to recover on its own, Snyder would have to support the stock aggressively. A reverse stock split is one possibility. Or Snyder and his allies, including McLean-based homebuilder Dwight Schar, a Six Flags director, may have to buy all the shares held by the public and take the company private, say attorneys familiar with Snyder’s situation.

[B][I][U]Says one lawyer, “He can’t tolerate the price of Six Flags stock being this low for very long. Don’t expect to see the Redskins spending a lot of money.”[/U][/I][/B]

Some investors are wondering if the kind of change that turned around the Redskins season—the injury to quarterback Jason Campbell that allowed Todd Collins to shine—might revive the theme-park operator. But the Redskins owner has given no indication that Mark Shapiro, who as CEO gets some of the blame for Six Flags’ problems, would be the latest Snyder employee to get axed.


Maybe its a blessing??/????

Re: Snyders SIx Flags "sinking fast"
 

Watching this guy closely for a decade now I constantly wonder how he became a billionaire, and why I am not.

Re: Snyders SIx Flags "sinking fast"
 

[quote=djnemo65;412350]Watching this guy closely for a decade now I constantly wonder how he became a billionaire, and why I am not.[/quote]

Just pure guessing here...I'd say he got there by stepping on the little guy....

Re: Snyders SIx Flags "sinking fast"
 

[QUOTE=squrrelco3;412361]Just pure guessing here...I'd say he got there by stepping on the little guy....[/QUOTE]

I actually read an article about him a few years ago that was interesting.

[url=http://www.washingtonian.com/articles/sports/1679.html]The Dan Snyder You Don't Know - Sports (washingtonian.com)[/url]

The guy hustled hard and deserves what he has. It's just that in the ten years that he has been a part of my life he has done some pretty dumb things.

Re: Snyders SIx Flags "sinking fast"
 

Even with the marketcap down to 180 million, its still be a hefty tab to privatize the company. You'd think with 27 parks, the land alone and the scrap metal, liquidation of salvageable equipment would be worth 200+ mill.

Re: Snyders SIx Flags "sinking fast"
 

[QUOTE=BrunellMVP?;412393]Even with the marketcap down to 180 million, its still be a hefty tab to privatize the company. You'd think with 27 parks, the land alone and the scrap metal, liquidation of salvageable equipment would be worth 200+ mill.[/QUOTE]

The land itself is probably worth over half a billion.

Re: Snyders SIx Flags "sinking fast"
 

I've read that Washingtonian article too. Don't make the mistake of thinking Dan Snyder is a fool, b/c he is a VERY savvy businessman. If you have any doubts compare the Redskin's net worth when he bought the franchise to what it is today. We may not have won a lot of games since then but he is definitely getting wealthier in the meantime. Also, arguably, if we even had the success of say a tampa bay or seattle (usually playoff contenders but not exactly elite) over the same time period, Snyder could be a billionaire many times over by now. Even his meddlesome tactics (bringing in high priced/big name FA's and coaches, opening up practices while smoking his cigar, etc) stand to make him more money than the direct impact of these moves on the team b/c he keeps the redskins name in the media's mind throughout. As long as fans/media are talking about the redskins, whether it is singing our praises or tearing into us, he has kept us relevant unlike some other once golden franchises (SF, Miami, and Oakland come to mind). He is a genius for this b/c he puts out a sub-standard product (i.e. the skins record) but has increased his profit 2 or 3 times over by marketing and branding the hell out of the Redskins. Reminds me a little of Microsoft's business model, haha, and i'd say it's gone pretty well for them.

Re: Snyders SIx Flags "sinking fast"
 

He is a savvy marketer and a successful businessman. Neither of those things have anything to do with his ability to run a pro football franchise correctly, unfortunately. Even if his heart is in the right place, like many successful business types, you rarely succeed in sports by constantly meddling from the top.

I see this kind of thing time and time again in my industry, where top execs from other businesses come in to run companies in industries they really don't understand. Ultimately the ones who succeed are those who hire the smartest people they can find and then get out of their way and let them do their jobs.

Meddling is a personality defect, not a leadership skill.

Re: Snyders SIx Flags "sinking fast"
 

[quote=dgack;412420]Meddling is a personality defect, not a leadership skill.[/quote]

I'm stealing that for my signature...hope you don't mind... :D

Re: Snyders SIx Flags "sinking fast"
 

[quote=FRPLG;412401]The land itself is probably worth over half a billion.[/quote]

I was thinking the same thing...parts worth a lot more than the whole, sort of what they did with Sears not that long ago..sell the poor performing sites for cash.

Re: Snyders SIx Flags "sinking fast"
 

I was wondering that when he had the problem in NO with the press and the 6 flags down there wather he was going to cntinue to develop the chain or look to sell off the land ...50 million for what is probably in excess of 2 billion in real estate is a savey investment ....

I just dont get why some people want to see successful people fail ?

Re: Snyders SIx Flags "sinking fast"
 

[quote=jrtmolar;412349]Redskins owner Dan Snyder had a little better year on the football field than as a businessman.



According to SEC filings, Snyder and his Red Zone hedge fund have poured some $50 million into his purchase of amusement-park operator Six Flags. Two years ago, when Snyder began building his stake in the company, it traded near $12 a share. In mid-November, after the company missed Wall Street expectations, the stock dropped to $1.91 and has mostly stayed there.

Securities lawyers say that a share price that low creates a perilous situation for Snyder. MarketWatch, among other business media, speculated that the company is “distressed” and listed it among those that may have to file for bankruptcy in 2008.

Should the stock price drop below $1, the stock exchange might be compelled by rule to delist it—which would affect its credit agreements and might send its other investors, such as Bill Gates’s Cascade Investment, running for the exits.

If Six Flags doesn’t begin to recover on its own, Snyder would have to support the stock aggressively. A reverse stock split is one possibility. Or Snyder and his allies, including McLean-based homebuilder Dwight Schar, a Six Flags director, may have to buy all the shares held by the public and take the company private, say attorneys familiar with Snyder’s situation.

[B][I][U]Says one lawyer, “He can’t tolerate the price of Six Flags stock being this low for very long. Don’t expect to see the Redskins spending a lot of money.”[/U][/I][/B]

Some investors are wondering if the kind of change that turned around the Redskins season—the injury to quarterback Jason Campbell that allowed Todd Collins to shine—might revive the theme-park operator. But the Redskins owner has given no indication that Mark Shapiro, who as CEO gets some of the blame for Six Flags’ problems, would be the latest Snyder employee to get axed.


Maybe its a blessing??/????[/quote]
wow... this is gonna get ugly.

Re: Snyders SIx Flags "sinking fast"
 

[QUOTE=BrunellMVP?;412393]Even with the marketcap down to 180 million, its still be a hefty tab to privatize the company. You'd think with 27 parks, the land alone and the scrap metal, liquidation of salvageable equipment would be worth 200+ mill.[/QUOTE]

You have to wonder what kind of liabilities they have though. There are all sorts of financing issues (i.e. debt in the form of loans and mortgages among) as well as legal liabilities (i.e. people choking on cotton candy while riding the coaster ans suing for $10 mill). And did he buy the company with pure cash or does he have debt he's paying off on that as well?

Re: Snyders SIx Flags "sinking fast"
 

[quote=FRPLG;412401]The land itself is probably worth over half a billion.[/quote]

Yeah that's pretty much exactly why he bought it. He didn't care about the park business, the intrinsic value on the real estate alone made it a decent investment.

Re: Snyders SIx Flags "sinking fast"
 

[quote=Schneed10;412453]Yeah that's pretty much exactly why he bought it. He didn't care about the park business, the intrinsic value on the real estate alone made it a decent investment.[/quote]
He could always sell out.

Re: Snyders SIx Flags "sinking fast"
 

[quote=bedlamVR;412437]I just dont get why some people want to see successful people fail ?[/quote]

It's the American Way. The only thing we love more than a rags-to-riches story is a tragic fall from grace.

Re: Snyders SIx Flags "sinking fast"
 

this reminds me how pissed off I am that the cryboys are worth more money than us now because of their new stadium...

He could tear down a six flags and use that land to build us a new stadium, hell keep the rollercoasters for tailgaters!

Re: Snyders SIx Flags "sinking fast"
 

[quote=jrtmolar;412349]Redskins owner Dan Snyder had a little better year on the football field than as a businessman.



According to SEC filings, Snyder and his Red Zone hedge fund have poured some $50 million into his purchase of amusement-park operator Six Flags. Two years ago, when Snyder began building his stake in the company, it traded near $12 a share. In mid-November, after the company missed Wall Street expectations, the stock dropped to $1.91 and has mostly stayed there.

Securities lawyers say that a share price that low creates a perilous situation for Snyder. MarketWatch, among other business media, speculated that the company is “distressed” and listed it among those that may have to file for bankruptcy in 2008.

Should the stock price drop below $1, the stock exchange might be compelled by rule to delist it—which would affect its credit agreements and might send its other investors, such as Bill Gates’s Cascade Investment, running for the exits.

If Six Flags doesn’t begin to recover on its own, Snyder would have to support the stock aggressively. A reverse stock split is one possibility. Or Snyder and his allies, including McLean-based homebuilder Dwight Schar, a Six Flags director, may have to buy all the shares held by the public and take the company private, say attorneys familiar with Snyder’s situation.

[B][I][U]Says one lawyer, “He can’t tolerate the price of Six Flags stock being this low for very long. Don’t expect to see the Redskins spending a lot of money.”[/U][/I][/B]

Some investors are wondering if the kind of change that turned around the Redskins season—the injury to quarterback Jason Campbell that allowed Todd Collins to shine—might revive the theme-park operator. But the Redskins owner has given no indication that Mark Shapiro, who as CEO gets some of the blame for Six Flags’ problems, would be the latest Snyder employee to get axed.


Maybe its a blessing??/????[/quote]

This doesn't surprise me at all. He's got a guy who worked for ESPN running Six Flags?? No wonder the roller coasters are stopping while they are upside down.

Re: Snyders SIx Flags "sinking fast"
 

[QUOTE=skinsfan69;412695]This doesn't surprise me at all. He's got a guy who worked for ESPN running Six Flags?? No wonder the roller coasters are stopping while they are upside down.[/QUOTE]

What's that supposed to mean?

Re: Snyders SIx Flags "sinking fast"
 

[quote=skinsfan69;412695]This doesn't surprise me at all. He's got a guy who worked for ESPN running Six Flags?? No wonder the roller coasters are stopping while they are upside down.[/quote]

so you just gave me a great idea, can you imagine if chris berman was the voice on the roller coasters that made all the announcements, then as you went into turns of loops he made all his little sound effects

Re: Snyders SIx Flags "sinking fast"
 

Ugh, those sound affects of his annoy the crap out of me

Re: Snyders SIx Flags "sinking fast"
 

[quote=SmootSmack;412737]Ugh, those sound affects of his annoy the crap out of me[/quote]

yea? I love when someone makes a move and he does his "whhoooop"

Re: Snyders SIx Flags "sinking fast"
 

Maybe I should dig up one of those stories about how Snyder had a business fail when he was in college so I can try and pile on.

Re: Snyders SIx Flags "sinking fast"
 

[quote=SmootSmack;412728]What's that supposed to mean?[/quote]

There is a Six Flags in the DC area and I think it was over the summer when this happened. While one of the rollercoasters was on the track with passengers it stopped while it was in a loop and the roller coaster was upside down. The people were stuck upside down for something like two hours. They were 60-70 feet in the air and stuck upside down. Very very scary situation. I believe the fire department was called and they handled it. It was all over the news down here and the people thought they were going to die. Total mess just like what's going on now.

Re: Snyders SIx Flags "sinking fast"
 

[QUOTE=SKINSnCANES;412735]so you just gave me a great idea, can you imagine if chris berman was the voice on the roller coasters that made all the announcements, then as you went into turns of loops he made all his little sound effects[/QUOTE]

back,back,back,back,back gone. then his bullrush sound effects start kicking in then tom jackson says where is he from lousville:lol:

Re: Snyders SIx Flags "sinking fast"
 

[QUOTE=skinsfan69;412773]There is a Six Flags in the DC area and I think it was over the summer when this happened. While one of the rollercoasters was on the track with passengers it stopped while it was in a loop and the roller coaster was upside down. The people were stuck upside down for something like two hours. They were 60-70 feet in the air and stuck upside down. Very very scary situation. I believe the fire department was called and they handled it. It was all over the news down here and the people thought they were going to die. Total mess just like what's going on now.[/QUOTE]

Not that. What's with the swipe at the guy being from ESPN. No one at ESPN is capable of running a business?

Re: Snyders SIx Flags "sinking fast"
 

[quote=SmootSmack;412792]Not that. What's with the swipe at the guy being from ESPN. No one at ESPN is capable of running a business?[/quote]

Mark S. is the CEO of Six Flags and had no experience running theme parks. None what so ever. I'm not saying he can't run a business. But there have been horror stories about Six Flags since Mark S. took over. Bad security, expensive food, the roller coaster ordeal to name a few.

Re: Snyders SIx Flags "sinking fast"
 

[QUOTE=skinsfan69;412795]Mark S. is the CEO of Six Flags and had no experience running theme parks. None what so ever. I'm not saying he can't run a business. But there have been horror stories about Six Flags since Mark S. took over. Bad security, expensive food, the roller coaster ordeal to name a few.[/QUOTE]

I'm aware of who runs Six Flags. But I think you're missing my point. Whatever, let's just drop it. Moving on

Re: Snyders SIx Flags "sinking fast"
 

I worked at Snyder Communication back in the mid 90's. Every thing was #'s for the company. I was the only employee there working part time, as part time wasn't allowed. My weekly goals were no different then full time employees, make 20 sales in 10 business days. Easily done.

While Sales individuals were fired and hired almost every week, this philosophy can't be used to run a sports team. THere has to be unity, and team spirit. Snyder COmmunication did little to raise team spirits, just intimidation by management.

Snyder must go.

Re: Snyders SIx Flags "sinking fast"
 

[quote=SmootSmack;412849]I'm aware of who runs Six Flags. But I think you're missing my point. Whatever, let's just drop it. Moving on[/quote]
Those guys from ESPN....I hate those guys :laughing-

I think the coaching search has everyone on edge.

Re: Snyders SIx Flags "sinking fast"
 

[quote=DCUNITEDFAN;413457]I worked at Snyder Communication back in the mid 90's. Every thing was #'s for the company. I was the only employee there working part time, as part time wasn't allowed. My weekly goals were no different then full time employees, make 20 sales in 10 business days. Easily done.

While Sales individuals were fired and hired almost every week, this philosophy can't be used to run a sports team. THere has to be unity, and team spirit. Snyder COmmunication did little to raise team spirits, just intimidation by management.

Snyder must go.[/quote]

Nice post, good to hear from someone who has actually worked for Snyder and lived to tell about it.

Welcome to the board. Hope you brought your flame-resistant underwear. After all, it's premature to blame Danny for all this.

Re: Snyders SIx Flags "sinking fast"
 

[QUOTE=djnemo65;412370]I actually read an article about him a few years ago that was interesting.

[url=http://www.washingtonian.com/articles/sports/1679.html]The Dan Snyder You Don't Know - Sports (washingtonian.com)[/url]

The guy hustled hard and deserves what he has. It's just that in the ten years that he has been a part of my life he has done some pretty dumb things.[/QUOTE]

This is from the cited article, "“For $10,000 you can be one of the boys,” Schar told Snyder. “For $25,000 you can be one of the big boys.”

Snyder wrote a check for $25,000. ""

Sounds like he didn't do this out of the kindness of his heart, but to be one of the big boys.

Re: Snyders SIx Flags "sinking fast"
 

There's rumors on The Street that a major hedge fund is in serious shit and may go belly up soon. Part of me is hoping it's his.

Re: Snyders SIx Flags "sinking fast"
 

[quote=ChuckPrez;413884]There's rumors on The Street that a major hedge fund is in serious shit and may go belly up soon. Part of me is hoping it's his.[/quote]


blackstone is the center of those rumors...

Re: Snyders SIx Flags "sinking fast"
 

[quote=DCUNITEDFAN;413457]I worked at Snyder Communication back in the mid 90's. Every thing was #'s for the company. I was the only employee there working part time, as part time wasn't allowed. My weekly goals were no different then full time employees, make 20 sales in 10 business days. Easily done.

While Sales individuals were fired and hired almost every week, this philosophy can't be used to run a sports team. THere has to be unity, and team spirit. Snyder COmmunication did little to raise team spirits, just intimidation by management.

Snyder must go.[/quote]

how do you propose to fire the owner? last time I checked, there are a lot of unhappy O's fans in baltimore...