Why Powdr was wrong for Killington

[KBL Ed]

I know, I know…

But I thought of something a few days ago, which I think is the key behind why Powdr was the wrong choice to take over Killington.

Everyone has already discussed to death how Powdr has no experience managing an east coast resort, and give that as a big reason why they are not doing as well as they could at K. But I think it goes a little deeper than that.

I think the real reason they can’t handle K is because they have only managed local's mountains. Think of it: yes, Batchelor gets truckloads of snow, but it really was a local's place, that only a few "in the know" outsiders would venture to. And PMRC, as big as it is compared to us, is just the "town hill" for Park City.

But what have they here? Freakin' Killington, once THE Mountain of the east! Powdr is out of their league, and they don’t even know it, thinking that since they have better snow out west, they automatically can run any mountain in the east. My point is that this is not about east or west, but that Powdr is WAY over its head. It is as if my local electrician was given the keys to run General Electric.

And Nyberg. He was a glorified sales rep for Bombardier and then president of, again, just some locals mountain. SP (or Powdr if we're keeping them in the picture) should have poached someone from Vail or Intrawest, someone with stature, not some wannabe! Another "local’s mountain" manager coming to the big time totally unprepared. It is as if Merrill Lynch tapped the Dis to manage the company.

Anyway, I think this is the real reason they’ve flubbed more than they should have. And, of course, this is all SP’s fault, since they are the ones who chose Powdr to partner with them.

[SkiDork]

Interesting theory. Makes a lot of sense to me.

[Highway Star]

Good points.....they obviously aren't the right choice for developing a strong real estate hub, which is what SP Land needs for the village. Letting POWDR control the resort and take it in the wrong direction was a huge mistake. But that's E2M's standard plan - pick a resort operator to run the attractions, while they do the real estate development.....oops.

A much better plan in this situation would have been to own the whole thing. That way they control the direction of the resort, which is critical to allowing development. Bring in their own management team of industry veterans and properly fund them. Even Les Otten would have been a good choice to operate the resort, with a minor share in both companies.

[andyzee]

It is as if Merrill Lynch tapped the Dis to manage the company.

I think that Dis would be able to do a better job at Merrill Lynch than Powdr at Killington.

[Bubba]

It goes to attitude and respect - they came in with an arrogant attitude and no respect for Killington's history or the community. The "elephant" turns out to be the town, not the resort, and they're not eating what they've killed unless they're chowing down on crow.

[chewbacca]

XXXZACTLY KBL ED. Very well said. The funniest thing is that they are in way over their head and they just don't know it. In fact, they think they are on top of the situtation. That coupled with their extreme arroagnce is a recipe for failure. The clock is ticking. I wonder what fiasco SP/Powdr will come up with next?

[Geoff]

Park City Mountain Resort is not a locals area. It is a western destination resort. If you live in Utah, you wouldn't ski there because it's expensive and the skiing surface is lousy compared to other options. If you are a local, you might eat and drink in Park City but you are unlikely to ski there.

I do agree with the overall sentiment that POWDR does not understand what Killington and eastern skiing are all about. Park City Mountain Resort doesn't give them a frame of reference. A true locals area at Mount Bachelor where there is no competition doesn't give them a frame of reference. They used to own Alpine Meadows. That's like owning Pico when you have Squaw Valley next door. You're going to get the overflow, bargain hunters, and people who want a more relaxed vibe.

POWDR obviously didn't understand that their cutbacks ended up putting the town in the driver's seat for the base village project. It's dead until POWDR can show that they won't screw the people who already have a substantial investment in the town. Given what happened over the last 10 months, even firing Nyberg probably wouldn't get the relationship fixed. The only way out is for POWDR to exit and for SP Land /E2M to find a buyer for both the land project and the ski resort.

[rogman]

I give Nyberg more credit than that. I think he's a good ops guy, i.e general manager. I think he knows what to repair, I just don't think he knows what to build. I have yet to see a "vision" from him, unless you count "polishing the gem". Sorry, but I need something better. Cummings? Doesn't impress me. I prefer the type that aren't afraid to get their hands dirty. Killington is just a bauble. Hopefully he'll tire of it, like Alpine Meadows, and move on.

The underlying problem is there is no one in any position of authority that gives a damn about Killington's history. It was here before them, and God willing, will be here long after they leave. I hope when Karen Lorentz does her long awaited second edition of "Killington: A Story of Mountains and Men", these carpetbaggers are given their rightful position of shame.

[Tin Woodsman]

I think the issue is related, but a little different. Look at the places they've run. Bachelor is a locals' hill with a captive audience and no developable real estate. PCMR has no real estate (IOW, no other stakeholders like town planning and zoning commissions) and the proverbial retarded monkey on meth could make money there (well, except for ASC) b/c of it's unbeatable location. Not sure what happened with Alpine, though it's interesting to note that it was the one place in their portfolio where there was no capitve audience and the competition was stiff. Selling out of it shouldn't have been a surprise in this regard.

Now they come to K, which is not only on the East Coast, it is also in the most intensely competitive (and shrinking) market for ski areas and is furthermore beholden to other (powerful) local stakeholders with respect to their plans for the Village.

These ass clowns are quite simply used to getting their way b/c they always could. They could not have been a worse choice to run Killington. Whoever from SP Land/E2M decided to bring them in has some splainin to do.

[chewbacca]

I think for alot of people who originally were willing to give SP/Powdr a chance finally gave up after 10 months of their performance or lack thereof. SP's recent little tantrum because the town wanted to see actual village plans based on what SP was really going to build was the last straw for many.

[Keithus]

When I see all of the improvements, not to mention the cordial resort-town relationships, at ALL of the other ex-ASC mountains it makes me want to sick Gangi the Porcupine on the SP-Land management team.

How does the biggest jewel in ASC's former crown get the worst company taking over operations?

Hey guys from Texas, next time how 'bout some due freaking diligence on such an important decision?
Had you chosen Peak Resorts (for example) you'd be looking to break ground on your village this Spring instead of next decade... maybe.
Marry in haste, repent at leisure.

[Loose Lips Sink Ships]

Wait to you see what we have in store for you next season. In order to re-coupe the money from the 1% tax we will feel no remorse at raising prices 10-12% and will state the reason for the increase as being the tax. $1240 for a full season pass, $7.00 draft beer, 12.50 for a hamburg and soda. We will retain our bottom line.

[KBL Ed]

LOL Guilty as charged!

[Mister Moose]

All of POWDR's decisions to date are in synch with a company that:

*Is not placing a priority on real estate values.
*Is not developing real estate and is not concerned with keeping vacation homeowners happy.
*Is not placing any priority on good relationships with the town, and its year round residents.
*Has as its sole source of revenue, and also revenue growth, strictly mountain operations.
*Feels no obligation whatsoever to promises or traditions of the past.
*Is placing a priority on day, weekend, Christmas and Presidents week customers, as opposed to season pass or vacation week customers.

SP has 2 phases to go through. The design/approval process, and the build/sell process. While it might appear they can take a casual attitude to mountain management, property sales and values in the short term before they are selling, they really can't. These same issues are foundering and infuriating the town, which provides the very approvals and permits SP needs. While it is technically true that you can muscle an application through an adversarial board, you will not get any variances that way, and large proposals in challenging environments almost always benefit greatly from several variances, special exceptions, or decisions where the town has wide latitude in making those decisions. It will also take much much longer if you are adversarial.

Thankfully, the town has indicated that they recognize that the mountain and the 'village' must be treated as a single (although siamese) entity, and have asked that both parties be on any application.

Even though the scope of the project is such that SP can afford a very large and experienced legal team to sit through the entire application process, and position themselves for appeals and lawsuits stemming from unfavorable decisions, I doubt they would want to do so from the onset in an adversarial stance. War is expensive, and always has casualties, even if you win. I expect a change of stance from SP (and perhaps a change of structure with POWDR) within a year's time.

[rogman]

Godwin's law requires me to point out that "A lie repeated with conviction enough times is as good as the truth" is really just a restatement of
"A lie, repeated often enough, will end up as truth", Dr Paul Joseph Goebbels, Hitler's Minister of Propaganda.

Carry on...