CEO of Zuffa LLC, dba UFC, has taken a new job with Red Rock Resorts, Inc., according to UNITE HERE
Jun 22, 2016, 04:23 ET
LAS VEGAS, June 22, 2016 /PRNewswire-USNewswire/ -- Zuffa LLC, dba the Ultimate Fighting Championship (UFC), has denied reports that it has been sold.[i] But the company has not announced that certain changes occurred in connection with the IPO by Red Rock Resorts, Inc. (NASDAQ: RRR), an affiliate of Zuffa and the new parent company of Station Casinos.
Lorenzo Fertitta, chairman and chief executive officer of Zuffa since June 2008,[ii] entered into a five-year new employment agreement with Red Rock, with an annual salary of $500,000, in connection with the latter's IPO in April. [iii] He is currently a Vice President of Red Rock, according to an SC13D filing by the company on May 12, in addition being a member of its board of directors.[iv] Also, Stations Casinos and Fertitta Entertainment agreed in October, 2015, to help Fertitta Entertainment employees move money they have in Zuffa 401(k)'s out of that plan and into a new one.[v]
"UFC employees might wonder why their CEO has taken a job with another company," said Ken Liu, a researcher with UNITE HERE. "How much of his time will be devoted to the UFC and its 'ongoing global expansion'? [vi] Is it going to be business as usual at the UFC?"
See description of Lorenzo Fertitta's new employment agreement with Red Rock here: Red Rock Resorts, Inc., FORM 424B1, filed on April 28, 2016.
See description of the provision to allow Fertitta Entertainment employees to roll over their Zuffa 401(k) accounts to other plans here: Fertitta Entertainment purchase agreement, as Exhibit 10.10 of Red Rock Resorts, Inc., FORM S-1/A, filed on February 12, 2016.
"Why were arrangements made to help Fertitta Entertainment employees move money out of their Zuffa 401(k)'s and into other plans?" said Liu. "Will there be changes to the Zuffa employees' 401(k) and other benefit plans?"
UNITE HERE represents 270,000 working people in industries such as gaming, hotel, and food service in Canada and the United States. UNITE HERE's Culinary Workers Union Local 226 and Bartenders Union Local 165 have a labor dispute with Station Casinos.
[ii] Red Rock Resorts, FORM 424B1, 4/28/16, p. 129.
[iii] Red Rock Resorts, FORM 424B1, 4/28/16, p. 158.
[iv] Red Rock Resorts, FORM SC13D, 5/12/16, p.13.
[v] See p. 41 of Exhibit 10.10 in Red Rock Resorts, S-1/A, 2/12/16.
[vi] Lorenzo Fertitta bio on Fertitta Entertainment/Leadership: http://www.fertittaentertainment.com/leadership/
SOURCE UNITE HERE
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