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.
[i]
http://www.mmamania.com/2016/6/21/11988176/ufc-denies-report-4-billion-sale-threatens-legal-action-against-mma-media
[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/
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SOURCE UNITE HERE