Double or Nothing: How Two Friends Risked It All to Buy One of Las Vegas' Legendary Casinos (20 page)
Authors: Tom Breitling,Cal Fussman
Tags: #===GRANDE===, #-OVERDRIVE-, #General, #Business, #Businessmen, #Biography & Autobiography, #-TAGGED-, #Games, #Nevada, #Casinos - Nevada - Las Vegas, #Las Vegas, #Golden Nugget (Las Vegas; Nev.), #Casinos, #Gambling, #-shared tor-
“I'm begging you guys,” Ed said. “Not now.”
We walked back in the room and shook Tilman's hand. The deal was finally done.
Then we walked down the corridor in silence and headed up to Tim's office. As we did, my anger dissipated, and everything became clear to me. I'd been keeping the plane level in turbulence so that Tim could walk out on the wing. He'd gotten
the deal done. Why was I giving him shit about ten minutes?
How could he think I wasn't thinking of both of us? Tim wondered. Have I
ever
not thought of both of us?
We entered Tim's office and closed the door. Bally was sitting on the couch. She looked up at us as if to say, “Hey, where have you guys been?”
We both smiled. Our smiles grew wider and wider and we burst out laughing.
And that's how we made our second $100 million.
A
fter a deal is done, there's generally a celebratory dinner on both sides.
No matter what's gone down, these meals are more fun when you're the buyer. When you sell, even if you've gotten the best of it financially, there's often a sense of melancholy that comes with the close of an adventure. When you buy, even if you've overpaid, you're lifting a glass to opportunity and toasting the possibilities of your future.
So who got the best of it?
Well, there are a lot of ways to look at it.
In a single year at The Nugget, Tim and I made a profit of $113 million. That's 226 percent on the $50 million we invested. That's more money than anyone in downtown Las Vegas has ever made faster than anyone has ever made it. In fact, it's been called
the highest rate of return in such a short time span ever in the gaming industry.
I've always believed that the best deals are the ones where everybody feels like they walk away a winner.
Maybe Tilman Fertitta sits in his office at this very moment and thinks he got the best of it. The day it was announced, the deal drove up the price of Landry's shares more than 12 percent on the New York Stock Exchange. Since then, Tilman has spent $125 million renovating The Nugget. Though as I tell this story, the downtown market is in its ninth consecutive negative growth month, The Nugget's revenues are flat, and Landry's stock is at the same level it was before the deal was announced. Still, there's a huge factor that could well be in Tilman's favor. The valuations of property in Las Vegas have soared since we signed the deal on the week of the Super Bowl in 2005. They've soared to the point where Tim often says, “I don't think God could've seen what's happened to Las Vegas.”
One month, we blink in disbelief when we hear that the asking price for Strip property where the Frontier sits is $36 million an acre. The next month, we're even more astonished to find out that it's been sold at that price. There's so much money floating around Wall Street and so many people with the green felt disease that these days anything less than a billion won't get you much on The Strip. If people start to look downtown as an alternative, Tilman Fertitta will be in the best possible place.
But that's just the dollars and cents of it.
As my best buddy likes to say, “You can only eat one steak at a meal.” (Although he's been known to order two while seated across from a preachy vegetarian.) Tim was a much wiser man the second time around. He didn't go into a funk after he'd sold his dream. He now races twenty feet from his bedroom to the
computers in his office every morning to bet on the stock market. He never said “I told you so” when he heard that Mr. Royalty lost the $8 million he'd taken from us along with just about everything else that he'd won on his streak. And he's constantly on the lookout for our next big business venture.
While waiting for our next move, I've gotten to mentor a great group of kids at the Agassi College Preparatory Academy and develop a program that assists budding entrepreneurs at the University of San Diego. I also met the love of my life. On the evening I first set eyes upon Vanessa Tarazona, her friends asked us to pose for a photo together and kept on saying, “Closerâ¦closerâ¦closer⦔ It never stops amazing me how we continue to grow closer by the minute. I knew it was right because my best friend told me so. So did Vanessa, when she asked that her groom and his best man be dressed in the same style of tuxedo.
Now I finish telling a story that allows me to see what my best friend and I have accomplished since we shook hands on a frozen lake.
It's kind of funny. All through the crazy negotiations with Tilman, I kept saying to Tim, “I'll believe it when I see his name in ink on paper.”
But that's not the image that I took from the contract.
My most enduring memory of the contract remains the moment when I wrote
my
name in ink on the page. I did so with a gift Tim gave me just prior: a unique fountain pen.
It's called the Amerigo Vespucci pen, in honor of the Italian explorer for whom our country is named, and it's custom-made of sterling silver and mother of pearl. It came in a beautiful wooden box etched with a picture of a ship sailing with the wind at its back. I'm telling you, I was almost scared to pick this pen up. It was a huge leap from my Bic.
When I took it in my hands, I felt like John Hancock or Thomas Jefferson about to sign the Declaration of Independence. That's how I signed the contract.
I put the pen back in its leather enclosure, shut the box, and stared at the image of that ship. And I felt that we hadn't really just sold The Golden Nugget. Tim and I had just signed on to explore somewhere new.
I
t would take more words than there are in this book to thank everyone who's helped me along on this incredible, and somewhat surreal, journey. While this may be the longest acknowledgment page you've ever encountered, trust me, I'm trying to be brief!
So, thank you to:
My parents, Fred and Carol, for all you've done to guide my life. Everything I've achieved is rooted in the gifts you've passed on: honesty and integrity, respect and hard work, flight and the passion for travelâand, of course, love and that rainbow.
Tim Poster, because even though the book is dedicated to you, a second porterhouse is needed to acknowledge your heart of gold and the impact you've had on my life. Here's a toast to the next voyage.
My wonderful wife, Vanessa Tarazona, for being beautiful
inside and out. Thanks for giving me a new way to smile each day.
My brother John, for all of your wisdom and the courage to tell me how you really feel. And my brothers Mike and Freddy, for the Piledrivers and flying highâyou led by example.
My sisters, Kim, for defense; Jody, for patience; Stephanie, for Skynyrd; and Elena, for the introduction to Spanish.
Grandma Johnson, for the cribbage games; Grandpa Johnson, for his last words; Grandma Breitling, for the Frosted Flakes; and Grandpa Breitling, for the lawnmower rides.
Uncle Jack, for taking me in as his own and not laughing too hard at my naiveté.
Vicki and Frank Fertitta Jr., for their open arms and watchful eyes.
Lorenzo Fertitta, for helping me lift the brick; and Teresa, for showing me how to make a home.
Frank Fertitta III, for throwing me into the Mediterranean and showing me a world of no boundaries. And Jill, who exposed me to style.
Perry Rogers, who picks up the phone and changes the world.
Andre Agassi, for the best steak ever and the conversation that altered my life.
Ed Borgato, for slamming his fist down when it mattered, and for introducing all of us to
Cinema Paradiso
.
Todd Wilson, for the curiosity that cracked open the James Bond briefcase.
Steve and Elaine Wynn, who continue to teach us about leadership.
The Maestro, Cal Fussman, for the best ears on the planet.
Tony Bennett and Danny Bennett, for showing us the true power in a partnership and the meaning of class.
Bobby Baldwin, for the history lesson and the blessing.
Jack Binion, for asking the big question and answering it, too.
Chuck Mathewson, for trusting us enough to ante up; and Burton Cohen, who knows how to make advice seem like a good story.
Tim's mom, Nikki Xerogianes; the one and only Aunt Mary; and the legendary Uncle Jimmy, who helped make Tim
Tim
.
Captain John, for the green bananas; and Harry Kassup, for bringing the Virgin to Vegas.
Bob Martin, who taught us all how to get the best of it.
Frank Toti Sr., for his “acts of kindness”; and Frank Toti Jr., for playing the role of Tom before I arrived.
Curt Magleby, for pointing us toward the deal that changed our lives.
Edward Muncey, for being “Mr. Incredible”; and his wife, Ashley, for understanding what it takes to be
in-credible
.
The boys at Skadden, Arps: Wally Schwartz, Howard Ellin, and Todd Freed, for making sure the contract was triple, quadruple, 100 percent ironclad.
Steve Cavallaro, for margarita coupons, his extraordinary nose, and for standing his ground.
Bernie Yuman, for simply being “Bernie,” because there is no other; and Gordie Brown, for the laughs.
Longtime friends Chris Bednarz, Ed Giefer, Mike Healey, Rich Dorn, and Matt Vasgersian, for keeping me humble.
Peter Wallace, for scribbling just the right notes on the napkin.
Tito Tiberti, for the backyard barbecues and bocce ball.
Bob Nagy, for the never-ending source of friendshipâand amusement; and Carol, for being a saint.
Michael Reichartz, for scraping the “2” off 21st Century Investing.
Frank Sinatra, because the music lasts forever; and Matt Dusk, who reminds us of that.
Zach Conine, for leaving the hallways of Cornell to come to the roof of The Golden Nugget.
Maurice Wooden, for introducing us to every employee and making us feel at home in our home.
The legendary Johnny D.âJohnny DiCostantinoâwho honored us by coming out of retirement.
Pete Kaufman, for advice on how to hold up The House.
Joe Brunini, for taking a few minutes to pass on a lifetime of knowledge.
David Chesnoff, for watching our backs and insulting our fronts, and who'll get the first invite to the next roast.
Freddy Glusman, because this book and Las Vegas just wouldn't be the same without Piero's.
Richie Wilk, for bringing in the Sopranos; and Steve Cyr for hunting whales in the desert.
The 2,500 employees at The Golden Nugget, for reviving Vintage Vegas.
Larry Ruvo, for good spirits; Leor Yerushalmi, for all the bling and the perfect ring; and Patrick Lewis, because I keep my promises.
Jim and Heather Murren at the Nevada Cancer Institute, who continue to teach me how to make Vegas a better place.
The entire student body at the Andre Agassi College Preparatory Academy, including the six students that I mentorâRicky, Jon, Cashawnda, Shaniqa, Bianca, and Simoneâfor their commitment and desire to take the next step.
Cedric Crear, for establishing Tim's work ethic at the fountains.
The men and women at Nellis Air Force Base and all mem
bers of the armed services for providing the freedom that allows all of us the opportunity to be entrepreneurs.
YMCA Camp Warren, where I learned to work as part of a team.
The University of San Diego, for putting me in just the right place; and Sardina's restaurant for that veal parmigiana sandwich.
Norm Clarke, Vegas's ultimate eye in the sky.
Michael Shulman, the Diva himself.
Scott Nielson, for his fine-tooth comb.
Dana White, for teaching me how to fight out of a corner.
Billy Richardson and his mom, for rolling with the punches.
Seth Shomes, for the introduction, and to Aaron Lewis for the song.
Jack Sheehan, for opening the door.
Sam Bybee, for making me aware that I only needed six hours' sleep a night; and Larry Sacknoff, for giving me my first break.
Brian Lipson, and everyone at Endeavor, who took the rollercoaster from Beverly Hills to Barnes and Noble.
Marion Maneker, for believing from the start.
Genoveva Llosa, for the meticulous editing; Ethan Friedman, for wanting to jump aboard; and David Hirshey, for guiding us through the journey.
Richard Ljoenes, for the great cover; Margot Schupf, for those extra photos; and Steve Ross, for making things happen in less than 1.2 seconds.
Monsignor Dan Dillabough, for the spiritual guidance.
Bill Fioravanti, for the custom tuxedos that are a perfect fit for the future.
Bally, who's taught us unconditional love.
Tom Breitling
is the president of Breitling Ventures, a private investment company. A graduate of the University of San Diego and a mentor at the Andre Agassi Preparatory Academy, he lives with his wife in Las Vegas.
Cal Fussman
is a writer at large for
Esquire.
The author of
After Jackie: Pride, Prejudice, and Baseball's Forgotten Heroes,
he lives with his family in Chapel Hill, North Carolina.
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DOUBLE OR NOTHING
. Copyright © 2008 by Tom Breitling. All rights reserved under International and Pan-American Copyright Conventions. By payment of the required fees, you have been granted the non-exclusive, non-transferable right to access and read the text of this e-book on-screen. No part of this text may be reproduced, transmitted, down-loaded, decompiled, reverse engineered, or stored in or introduced into any information storage and retrieval system, in any form or by any means, whether electronic or mechanical, now known or hereinafter invented, without the express written permission of HarperCollins e-books.
EPub Edition © FEBRUARY 2008 ISBN: 9780061863363
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