I am posting this because Gaylord Entertainment is the owner of the Grand Ole Opry and their financial condition is important to the success of the show, especially with Gaylord stock "in play" at this time, in regards to the majority ownership of the company.
Gaylord Entertainment reported Tuesday a $3.4 million profit in its first quarter, despite an increase in room cancellations and groups booking fewer participants than expected. Some analysts pointed to continued challenges ahead for the Nashville based company as corporations and meeting groups-Gaylord's prime customers-continue to closely monitor how money is spent. The company's earnings were helped by cancellation and attrition fees as well as cost-savings initiatives that Gaylord had put in place, including 350 layoffs earlier this year, analysts said.
The company will hold its annual shareholders meeting on Thursday, with shareholders voting on proposals including whether they approve four new board members proposed by major shareholder TRT Holdings Inc. and money manager Gamco Asset Management Inc.
(Courtesy of the Tennessean).
A couple of observations and comments from what I have heard on the streets:
>Nowhere in the press release from Gaylord is there any mention of the Opry or its properties, including WSM. Obviously some of the cost cutting that Gaylord did, involved the Opry, including cuttting the Saturday night 2nd show during parts of the year, and in having fewer artists and band members performing on stage. In addition, the cost cutting did involve WSM radio.
>From what I have heard, TRT is not interested in the entertainment part of Gaylord, but the hotel and convention business. They are the owners of the Omni hotel chain and that is the business they know. They tried to take control of Gaylord earlier this year, but now they are settling for board seats. The Opry is apparently safe as long as Gaylord is the owner of WSM. If WSM is sold, then all bets are off.
As an interested observer in Gaylord and the Opry, we will continue to follow this story and report information as necessary.