Steve Wynn Can't Lose

By Minyanville Staff  DEC 03, 2013 12:40 PM

The latest 10-Q from Wynn Resorts, the eponymous firm headed by CEO Steve Wynn, lays out the details of the 9,745 square feet of space he calls home (when he's in town).

 


According to sources, Las Vegas' average monthly rent is $776.

For Steve Wynn, “average” is closer to $44,000.

The latest 10-Q from Wynn Resorts (NASDAQ:WYNN), the eponymous firm headed by CEO Steve Wynn, lays out the details of the 9,745 square feet of space he calls home (when he’s in town):

On March 18, 2010, Mr. Wynn and Wynn Las Vegas entered into an Amended and Restated Agreement of Lease (the “Prior SW Lease”) for a villa suite to serve as Mr. Wynn’s personal residence. Effective March 1, 2010, and for the first two years of the term of the Prior SW Lease, the rental value was $503,831 per year. Effective March 1, 2012, the rental value was $440,000 per year. On May 7, 2013, Wynn Las Vegas entered into a 2013 Amended and Restated Agreement of Lease (the “Existing SW Lease”), effective December 29, 2012, to include an expansion of the villa and to adjust the rental value accordingly to $525,000 per year based on the current fair market value as established by the Audit Committee of the Company with the assistance of an independent third-party appraisal.

Not too bad at all. However, the upkeep must be a killer, right? Well...

The Company periodically provides services to Stephen A. Wynn (“Mr. Wynn”), Chairman of the Board of Directors and Chief Executive Officer, and certain other officers and directors of the Company, including household employees, construction work and other personal services. Mr. Wynn and the other officers and directors have deposits with the Company to prepay any such items, which are replenished on an ongoing basis as needed. As of September 30, 2013 and December 31, 2012, Mr. Wynn and the other officers and directors had a net deposit balance with the Company of approximately $1.4 million and $1 million, respectively.

Well, it is the guy’s name above the door, after all. And he granted the company the use of it in perpetuity:

On August 6, 2004, the Company entered into agreements with Mr. Wynn that confirm and clarify the Company’s rights to use the “Wynn” name and Mr. Wynn’s persona in connection with its casino resorts. Under the parties’ Surname Rights Agreement, Mr. Wynn granted the Company an exclusive, fully paid-up, perpetual, worldwide license to use, and to own and register trademarks and service marks incorporating the “Wynn” name for casino resorts and related businesses, together with the right to sublicense the name and marks to its affiliates.

Okay, so that’s “Wynn.” But it looks like a clever entrepreneur in Cambodia managed to squeeze his own casino through a minor loophole...



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