From the Felt Top Table
with Kenneth Pearlman. For 3/1/00
LAST 30 SECONDS OVER LAS VEGAS
It started out a typical warm June day in 1999. A meeting was
called by the Las Vegas Convention and Visitor Authority (LVCVA).
In their large meeting room dozens of casino representatives came
downtown to meet with the Grucci Bros. If you haven't heard of the
Grucci Bros. they make fireworks, but not JUST fireworks, these guys
are the best in the business. They did the 4th of July display for
Boston over the harbor, the great New York City fireworks display
on the 4th. Here in Vegas, they did the pyrotechnics on the Dunes
explosion. They did the opening of the Stratosphere Tower, still
considered one of the most innovative displays ever from a standing
tower, they've done the Rio and Luxor openings as well as past New
Years and 4th of July displays here and the plan they had for Las
Vegas on New Years Eve 2000 was mindboggeling.
Something they've never done before and sure to grab the attention
of the entire world. Everything was blueprinted to the last detail
at the Grucci Bros. expense knowing when they tabled this event,
the casino owners would do whatever it took to get it done. It meant
millions to the casinos in gambling, as well as the exposure from
the worldwide media. The only three places they had to focus their
attention was New York City, Washington DC and Las Vegas. And of
those three, when you hear the plan, Las Vegas would surely have
been the only one that would garner full media for most of the
proceedings and for sure the LAST THIRTY SECONDS.
And so the blueprints hit the table and Grucci spoke; "The
plan here will be the most innovative we've ever undertaken.
Our plan is for a countdown to take place in fireworks down
the entire length of the Strip. Each of twenty hotels will have
fireworks on their roofs that will fire in sequence starting at
the Stratosphere Tower with number thirty and work it's way down
to the end of the strip at Mandalay Bay. The television coverage
alone will be incredible. TV crews on hotel roofs, in Blimps and
on the ground covering the entire strip, just imagine the
competition for coverage.
Now the fireworks themselves contain the numbers within the
flash (shows a video on a large screen tv while he's explaining,
showing the white flash and the blue number 1 inside the white
flash, then #2, #3 etc.) And of course, the last one is a
package of four numbers being 2000. The cost of the project is
$2 million dollars, or $100,000 each. "And that's when the real
fireworks began. From the Stratosphere "If we're to get #30 then
most of the people will be waiting at the other end of the strip
for #1 and why should we pay the same as Mandalay Bay if everyone's
going to crowd down there and not at our property?" That was
followed by the Sahara, the Stardust and others on the northern
end of the strip to reiterate the sentiment. To which Grucci
replied "We're talking anywhere from 500 to 750 thousand people,
don't you think there's plenty of business to go around." "I think
what he's saying is visitors will come with or without fireworks"
said Glen Schaefer of the Mandalay Group. "Turning Las Vegas
into a block party is not a solution. People don't come to Las
Vegas for fireworks." And that was all that had to be said.
Grucci picked up the blueprints, rolled them back up, grabbed the
vcr tape, tucked them under his arm and said "I thought you
people were ready for this, I didn't even consider anywhere
else to propose this, frankly, it couldn't be done like this
anywhere else and now it won't be done here, not with you guys."
But while major cities across the globe like Sidney, Seoul,
Paris, London, New York and Washington DC garnered heavy
worldwide television coverage of fireworks-laden midnight
celebrations, coverage of Las Vegas was sporadic and almost
non-existent at best. "For only $100,000 a property, we could
have had the biggest fireworks display in the world" said
Jonathan Swain, GM of the Hard Rock hotel and former executive
at the Tropicana, "but we dropped the ball and it cost us
millions" Rob Powers, spokesman for the LVCVA said "The
feedback we got was that the hotels had already spent
considerable sums of money on their own entertainment for
their guests and quite frankly, there was not a strong appetite
to spent more since they had charged such outrageous prices
and the occupancy rate wasn't much more than half until they
started to slash prices just days before new years to try to
attract customers. "Our best customers would have never
seen it. The people who would have seen it would have been
standing out in the street and we don't make money from people
standing out in the street. I'm sorry the Paris's Eiffel Tower
or the Bellagio's water fountains or the Volcano isn't enough."
said Alan Feldman of Mirage Resorts. And so the egos clashed
and when the question was brought up by the MGM Resorts "Who
gets second #1 and more, who gets #2000" Well that was the end
of it all. Grucci noted that since Mandalay Bay was at the
end of the south Strip, they would get it and the party would be
contained from Spring Mt.Rd. to Russel Rd. with the bulk of
people, expected to top 500,000, would crowd from Flamingo Rd to
Tropicana.
But no one would go for it, everyone wanted to be #1 and for
$100,000, it was too healthy a price tag. Well maybe for Little
Rock Arkansas, but for Las Vegas, it was one rack from a blackjack
table, the drop from a few slot machines on a good weekend. But
this wasn't old Las Vegas, these guys weren't casino executives,
they were corporate puppets that couldn't make a hundred thousand
dollar decision. Manny Cortez, long time president of the LVCVA
said "Frankly, we were outdone by the rest of the world. This town
missed out on millions of dollars of revenue for a lousy two million
dollar decision that let egos dictate it's outcome. I don't think
we'll ever have an opportunity to fix that. The biggest p.r. fiasco
in this city's` history was New Year's Eve 2000. The lack of
preparation sent the media scrambling for coverage somewhere else,
anywhere else." Cortez said.
So how did casinos fare during the New Year's Eve weekend?
The estimated cost spent by the casinos was $60 million (Not
including the $10 million MGM spent on Barbara Streisand) their
total take was just over $35 million, not including food and
beverage revenues. Hearing these figures, casino owners were
outraged. Stock prices dropped on Park Place (Bally's, Flamingo,
Hilton, Paris) Mandalay Bay Resorts (Mandalay, Luxor, Excalibur,
Circus Circus) as well as Rio and Harrahs. The estimated take had
the money been spent on the fireworks, had the 500-750,000 people
appeared. Had hotel occupancy been at the 100% that was expected
but only close to 80% was actually realized and that was only due
to the last minute scrambling by the casinos to cut prices and
give out as many comps as possible to fill rooms, could have been
close to $75 million including television revenues that also never
appeared. Many people are still put off at the Las Vegas
mentality on New Years 2000.
The idea of $2000 a night rooms. Hundreds of dollars per
person for even the meagerest New Years parties, some casinos
hiring lounge bands to entertain at the cost of Rolling Stone's
tickets. And so egos clashed and once again we paid for it.
(New Year's eve tips were the lowest EVER reported from casino
dealers as well as cocktail waitresses and bartenders and food
servers. And so as Benjamin Franklin said, "For want of a
horseshoe nail the horseshoe was lost, for want of the horseshoe
the horse was lost, for want of a horse the messenger was lost,
for want of a messenger the battle was lost and all for the
want of a horseshoe nail."
PS: By the way, the Millenium doesn't start until January
1, 2001. Remember, the first year AD was 0 (1/1/00)-12/31/00)
but the first century didn't start until 1/1/01 that's why the
20th century was in the 1900's and the 21st century was 1/1/2000,
so the 2000th year doesn't start until 1/1/01 (THE END OF THE
2000TH YEAR), just like the same date as the beginning of the
first century, so you don't count from 1, you count from 0 ......
And though I hate to tell you, they get another shot at you
all if they decide to spend some advertising money and cash in
on the REAL MILLENIUM.
---Ken Pearlman
THE AWESOME 1
TheAwesome1@yahoo.com
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