Cedar Fair filing will detail executive payouts if they're let go by new owner

Posted Wednesday, January 6, 2010 11:34 AM | Contributed by Jeff

On Friday, Cedar Fair plans to file its proxy statement with the Securities and Exchange Commission, outlining more details on Apollo's plans to buy the parent company of Cedar Point and turn it into a privately-owned company. A final decision on the $2.4 billion transaction is expected within 50 days. Last year's proxy statement stated that if Cedar Fair CEO Dick Kinzel lost his job after Cedar Fair was taken over, he'd receive a $20 million golden parachute. The new statement is expected to spell out details of his proposed contract extension under the new ownership.

Read more from The Sandusky Register.

Wednesday, January 6, 2010 11:37 AM

While I'm generally OK with separation clauses in executive contracts, I also think they should be something resembling proportion to regular salary. $20 million to be let go on a salary of less than $3 million is all wrong.

Interestingly, FUN is trading at $11.57 right now, higher than Apollo's offer. Is it too much to wish for the price to keep rising, a shareholder uprising that ousts the board and Dick, and the appointment of a hot shot CEO that can work out of the debt without selling?

+0
Wednesday, January 6, 2010 11:50 AM

With all the financial drama going on, what are people's thoughts regarding the impact on the product? In other words, are these signs of darker days ahead (Six Flags), or will Cedar Fair be better for it?

+0
Wednesday, January 6, 2010 12:20 PM

It amazes me the ineptitude of the Cedar Fair board to approve bonuses in 2008, let alone 2009, when the financial mess has been going on for several years now which was hidden by creative accounting/reporting at all levels in the company. They are absolutely no different than the boards of all the financial companies that failed this past year and dragged America into this deep recession which screwed the "little guy on the street" and investors but somehow not the people responsible for the mess. The insanity must stop.

Dick doesn't deserve a dime for anything, period. He was compensated accordingly when things were going well and now that things are failing he should also feel the financial repercussion. That is called TAKING RESPONSIBILITY. Funny, Dick is a Republican who believes in this mantra, just not when it applies to him.

There is absolutely nothing wrong with Cedar Fair "the business," only the corporate management. Remove the management and bring in fresh blood and you will see an explosion of growth financially as well as a return to a fair value for the units. Vote NO on Apollo!

+0
Wednesday, January 6, 2010 2:58 PM

Interestingly, FUN is trading at $11.57 right now

That *is* interesting.

+0
Wednesday, January 6, 2010 3:03 PM

Now its $11.78.

+0
Wednesday, January 6, 2010 3:07 PM

Only reason to buy the thing at above $11.50 would be if you're confident there is another bidder coming to the table, right?

+0
Wednesday, January 6, 2010 4:55 PM

Jeff said:
Is it too much to wish for the price to keep rising, a shareholder uprising that ousts the board and Dick, and the appointment of a hot shot CEO that can work out of the debt without selling?

I think a lot of people are hoping for that - me included.

+0
Wednesday, January 6, 2010 5:57 PM

If you are confident that there is another bidder, or if you are confident that the shareholders will tell Apollo to go away. Either way, you're good over 11.50.

Is the official line not that Apollo called Cedar Fair, not the other way around?

--Dave Althoff, Jr.

+0
Wednesday, January 6, 2010 10:47 PM

Closed at $11.63, roughly 1% over the $11.50. WIll be interesting.

+0
Thursday, January 7, 2010 12:16 AM

Jeff said:
Is it too much to wish for the price to keep rising, a shareholder uprising that ousts the board and Dick, and the appointment of a hot shot CEO that can work out of the debt without selling?

I'll bring the torches for the peasants to storm the castle.
Seriously, I like the idea of the "uprising" if only for someone to show corporate America that we're sick of the crap they're handing us, supposedly in our best interest.

+0
Thursday, January 7, 2010 4:11 AM

Nobody is commenting on what will happen to the parks if this deal goes through. It seems to me that Cedar fair is making all the same mistakes that six flags made, aquiring to many parks too soon.

Has there been any mention of what this Apollo group plans to do with the parks once they aquire them? I don't think that they would hold onto my home park. Michigan's Adventure. Which by the way, raised their rates once again for 2010 with nothing new to show for it.

Any comments?

+0
Thursday, January 7, 2010 6:25 AM

II'm willing to be that we'll see at least few parks closed or sold.

+0
Thursday, January 7, 2010 11:54 AM

To whom? Great America has been on the market for years, and they were soliciting bids for Valleyfair and Worlds of Fun.

You don't make money by selling the assets that generate income unless they're losing money.

+0
Thursday, January 7, 2010 3:12 PM

Sometimes assets are sold to pay down debt. But even if you can sell (not a sure bet in current market at all), the assets that will allow you to pay down the most debt are most likely the ones you don't want to sell because they are generating the best cash flows. Though typically private equity firms are looking to cut expenses/costs not reduce revenue sources.

+0
Thursday, January 7, 2010 3:43 PM

^ Then whoever buys it better start improving some stuff. If they want to make CP a "national" destination, they could start with an overhaul of Hotel Breakers. A coat of paint, doing a gut renovation on the Bonair section, and adding Wifi could go a long way.

+0
Thursday, January 7, 2010 3:57 PM

I'd be content with real glasses in the rooms. Real beds and linens wouldn't hurt either.

+0
Thursday, January 7, 2010 5:09 PM

I'd be content with real glasses in the rooms.

Preach on.

+0
Thursday, January 7, 2010 5:43 PM

I (sort-of) understand the not upgrading beds, redoing sections, adding new light fixtures, etc. because there's not a real-world way to prove how that pays itself off. But Wi-Fi, Pay-per-view, something to do besides eat at Fridays after the park closes... these are all things with a direct ROI. Not having these things is simply asking your guests to give their money to someone else.

+0
Thursday, January 7, 2010 6:35 PM

What if they opened a "Club CP?"

+0

You must be logged in to post

POP Forums - ©2018, POP World Media, LLC
Loading...