IS ETESS OUT AS CEO OF MOHEGAN SUN?

Etess to relinquish CEO post at Mohegan Sun
By Brian Hallenbeck

Publication: theday.com

Published 11/23/2010 12:00

Mohegan — Mitchell Etess will relinquish the top management post at Mohegan Sun to concentrate on developing business opportunities for the Mohegan Tribal Gaming Authority, he announced today during a conference call with investors and analysts.

Etess has been Mohegan Sun's president and CEO as well as the authority's CEO for the past 4½ years. The authority, an instrumentality of the Mohegan Tribe, operates Mohegan Sun and Mohegan Sun at Pocono Downs in Wilkes-Barre, Pa.

Jeffrey Hartmann, executive vice president and chief operating officer of Mohegan Sun as well as the authority's chief operating officer, will succeed Etess as Mohegan Sun's chief executive.

The changes are effective Jan. 1.

The authority reported today that its adjusted EBITDA — earnings before interest, income taxes, depreciation and amortization — for the quarter ending Sept. 30 was down 10.7 percent over the same quarter in 2009. The decline reflects the impact of a $5.7 million credit in the fourth quarter of fiscal 2009 resulting from an agreement with the state of Connecticut regarding Mohegan Sun's free-play slots program. The credit had the effect of reducing operating costs and expenses, and increasing adjusted EBITDA in the fourth quarter of fiscal 2009.

The authority said net revenues were down 2.4 percent for the quarter. Overall, the authority's gaming revenues were up 1.7 percent while nongaming revenues were up 9.5 percent.

EDITORIAL FOOTNOTE; Did the MTGA (Mohegan Tribal Gaming Authority, the Mohegan Tribal Council) ask for Mr. Etess's resignation or had he have enough? Is it too little, too late? How will this affect the benefits, the Mohegan Tribe receives? What do you think?