THE PUT

I'M NOT A LAWYER, BUT I BELIEVE, A PUT IS A TERM USED SO THAT IF CERTAIN CONDITIONS IN A CONTRACT DO NOT HAPPEN, THAT THE BUYER CAN REQUIRE THE SELLER. TO BUY THE PROPERTY BACK FROM THE BUYER.

A FEW YEARS AGO, THE MOHEGAN TRIBE PURCHASED POCONO DOWNS RACE TRACK SO THAT PART OF IT COULD BE TURNED INTO A SLOT MACHINE CASINO.

THE MOHEGAN TRIBE PURCHASED FROM PENN NATIONAL THE RACE TRACK FOR AN ESTIMATED TWO HUNDRED EIGHTY MILLION DOLLARS ($280,000,000.00.) THE TRIBE COULD SELL POCONO DOWNS BACK TO PENN NATIONAL IF THEY DID NOT GET A CASINO (GAMING) LICENSE BY JULY OF THE FOLLOWING YEAR. PENN NATIONAL WOULD PAY THE MOHEGAN TRIBE THE APPRAISED VALUE OF THE PROPERTY NOT COUNTING THE IMPROVEMENTS THAT THE MOHEGAN TRIBE PLANNED TO DO. JULY, CAME AND THE TRIBE HAD NO LICENSE. THEY COULD SELL THE PROPERTY BACK TO PENN NATIONAL OR MAYBE MAKE SOME KIND OF DEAL. THE TRIBE TOOK AN ESTIMATED THIRTY MILLION DOLLARS ($30,000,000.00) FROM PENN NATIONAL, TO BE PAYED IN INSTALLMENTS OVER SEVERAL YEARS.

THE MOHEGAN TRIBE AT THIS POINT HAD SPENT AN ESTIMATED SEVENTY THREE MILLION DOLLARS ($73,000,000.00) FOR THE TEMPORARY FACILITY (1200 SLOT MACHINES IN THE OLD RACE TRACK AREA.) FULL SPEED A HEAD BY MOHEGAN SUN AT POCONO DOWNS. WE SPEND AN ESTIMATED TWO HUNDRED AND THREE MILLION DOLLARS BUILDING THE NEW PERMANENT CASINO (SLOT PARLOR). THE MOHEGAN TRIBAL GAMING AUTHORITY IN CONNECTICUT, APPROVED AN ADDITIONAL THIRTY MILLION DOLLARS ($30,000,000.00) FOR THE ENVIRONMENTAL CLEANER UP OF THE FACILITY. WE HAVE BEEN TOLD THAT THE AREA IN QUESTION WAS COVERED UP BUT NOT CLEANED UP. THERE IS A QUESTION ABOUT THE THIRTY MILLION DOLLARS. SOME SAY IT WAS NEVER USED. SOME SAY THE MONEY WAS SENT OVER AND CAME BACK. SOME SAY IT WAS JUST PUT INTO THE FUNDS USED AT POCONO DOWNS. DOES ANYONE KNOW WHAT HAPPENED TO THE FUNDS? THE GAMING (SLOT) LICENSE COST THE TRIBE ANOTHER FIFTY MILLION DOLLARS ($50,000,000.00.) IF YOU ADD UP THE FIGURES YOU COME TO SOMETHING LIKE SIX HUNDRED TO SEVEN HUNDRED MILLION DOLLARS ($600,000,000.00 TO $700,000,000.00.) THE ORIGINAL ESTIMATE, I BELIEVE WAS A TOTAL INVESTMENT OF BETWEEN FIVE HUNDRED MILLION DOLLARS AND FIVE HUNDRED AND FIFTY MILLION DOLLARS ($500,000.000.00 TO $550,000,000.00) THAT WOULD MAKE BETWEEN THIRTY AND FIFTY MILLION DOLLARS A YEAR . I DON'T THINK IT HAS EVER CLEARED THAT MUCH MONEY.

THE WAY I UNDERSTAND IT ,WHEN THE MOHEGAN SUN DID THE DEAL, IT WAS WITH THE UNDERSTANDING THAT THE TRIBE WOULD PAY A ONE TIME LICENCING OF FIFTY MILLION DOLLARS AND WOULD GIVE FIFTY FIVE PERCENT (55%)OFF THE TOP TO THE STATE OF PENNSYLVANIA. IT ENDED UP THE STATE AND THE TOWNS TOGETHER ARE GETTING ABOUT SIXTY TWO PERCENT (62%) OFF THE TOP.

HERE IS THE THING ABOUT THE DEAL, PENN NATIONALS BUYOUT WAS FOR THE APPRAISED VALUE OF THE RACE TRACK. SO IN OTHER WORDS IF IT WAS ONLY WORTH SAY 175 TO 200 MILLION DOLLARS WE WOULD HAVE LOST AT LEAST A HUNDRED AND FIFTY TO TWO HUNDRED MILLION DOLLARS ($150,000,000.00 TO $200,000,000.00.) IN MY MIND TAKING THIRTY MILLION DOLLARS ($30,000,000.00) WAS NOT A GOOD DEAL. ALSO KEEP IN MIND THAT PENN NATIONAL DID NOT HAVE TO PAY US FOR THE IMPROVEMENTS WHICH WE HAD ALREADY DONE ($73,000,000.00).

WE HAVE BEEN TOLD THAT BUSINESS AT POCONO DOWNS IS UP ABOUT TWENTY PERCENT (20%) ABOVE LAST YEARS FIGURES. WE HAVE BEEN TOLD THAT FOR THE FIRST TIME THE POCONO DOWNS IS PAYING THE INTEREST ON ITS LOANS. UP TO NOW WE HAVE BEEN TOLD THAT THE MOHEGAN SUN CASINO IN CONNECTICUT HAS BEEN PAYING THE INTEREST. WE HAVE BEEN TOLD THAT THE TRIBE IS STILL NOT PAYING ANY OF THE PRINCIPLE.

NOW YOU KNOW THE STORY OF THE PUT. DO YOU THINK POCONO DOWNS IS A GOOD DEAL? DO YOU THINK THE MOHEGAN TRIBE SHOULD HAVE GONE TO PENNSYLVANIA? SHOULD WE GET THE POCONO DOWNS CASINO PROFITABLE AND SELL IT OFF? WHAT DO YOU THINK?