Should I stay or should I go...

July 2007

That seems to be what Donald Trump is singing these days as he, or his investors, decide whether or not to sell off his three properties here - Trump Plaza, The Taj Mahal and Trump Marina to a group of investors headed by Dennis Gomes. Gomes once worked for Trump when he presided over the Taj Mahal, and the two had a messy divorce before Gomes landed with Aztar and headed the Tropicana/Quarter project.

A source close to Gomes said the prospect of a sale was 50-50 due to the amount of debt involved with the Trump properties. And the Philadelphia Inquirer reported in late June that the deal was on hold, which led to a resulting drop in the stock price.

Trump has been plagued by excessive debt service since he opened the Taj Mahal in Atlantic City, which had prevented him from reinvesting in his other two properties. At one time, when Mark Grossing Etess ran it, the Plaza was the cornerstone property in Atlantic City, and hosted such lavish events as the prefight party for the Spinks-Tyson fight which drew celebrities like Sean Penn and Madonna.

The Marina still remains as a diamond in the rough with its location, and the Taj is now building a new tower.

With Jim Perry now gone, the Trump Properties are being led by casino executive Mark Juliano. If the Gomes team comes in that will most likely change, although one never knows in the fickle world of casino executives.

The whole city seemed to be riveted by the proposed sale of the Trump empire. Think what you will of The Donald, but he has remained fiercely loyal to the Atlantic City market since his arrival here in 1980...

Bally's dealers vote for union...

Meanwhile on the casino front...things are quiet at Bally's Atlantic City after a nasty union battle that was won overwhelmingly by the UAW in a landslide vote. Nevertheless, Harrah's Entertainment is contesting the result, claiming certain Asian observers were pointing to the yes side of the ballot when Asian dealers voted.

The union drive, coupled with the smoking ban and outside competition has made the Atlantic City casino market rather anxiety-driven. And while most of the industry is off from a year ago, the Tropicana is way off, leading many to believe that the massive layoffs at the property has actually hurt the casino revenue side.

Here is what one casino exec told The Insider late in June: "It's all about developing non-gaming revenue now. The Borgata has done it and the rest of us must follow. I don't think you will ever see the gaming revenue hit what it once did here in Atlantic City. It has peaked now. And, of course, the other key is rooms, rooms and more rooms."

Beach Bars a big draw...

One casino related non-gaming revenue producer which remains successful is the beach bar. One beach bar did $2 million worth of business in sixty days last summer, according to an Insider source. The problem here is that Beach Bars must be dismantled and then reconstructed every summer due to EPA regulations.

The Beach Bars were ready, of course, for the big Jimmy Buffet concert event which was held on June 30th in Atlantic City at Boardwalk Hall....

Boardwalk Hall continues to sell out...

Meanwhile, at Boardwalk Hall The Tool Show sold out, and what was significant about that was that the show was not promoted by an Atlantic City casino and was still successful. But the cost of doing business at Boardwalk Hall is still steep, according to local MMA promoter Felix Martinez, who did the Ray Mercer/Kimbo Slice event at Boardwalk Hall on June 23rd. A tremendous walkup led to a crowd of over 7,000, but union work rules in the Hall make it an expensive place to do business – according to Martinez.

"They (Boardwalk Hall) treat you great, but it is still expensive for the young and up-and-coming promoter," Martinez said.

Kimbo won the event over Mercer, looking like a lion unleashed from a cage the moment the streetfight in cage started. There were also some fights in the stands as well at the MMA event. Look for Kimbo to become a hot commodity on this bizarre MMA scene.

Great early weather kicks off summer in Ocean City...

Early indicators are that it will be a banner summer in Ocean City as June concludes and July begins. And for what reason? That would be June weather that was almost perfect.

"Weather... weather... weather", said one Boardwalk merchant.

"That's what it is all about."

The Insider is written by a prominent local business person who chooses to remain anonymous at this time. The opinions and news bites are that of The Insider and do not necessarily reflect the positions or views of this magazine, it's staff, or its publisher.