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Snyder's Six Flags Sinking Fast

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By Kim Eisler

Redskins owner Dan Snyder had a little better year on the football field than as a businessman.

According to SEC filings, Snyder and his Red Zone hedge fund have poured some $50 million into his purchase of amusement-park operator Six Flags. Two years ago, when Snyder began building his stake in the company, it traded near $12 a share. In mid-November, after the company missed Wall Street expectations, the stock dropped to $1.91 and has mostly stayed there.

Securities lawyers say that a share price that low creates a perilous situation for Snyder. MarketWatch, among other business media, speculated that the company is “distressed” and listed it among those that may have to file for bankruptcy in 2008.

Should the stock price drop below $1, the stock exchange might be compelled by rule to delist it—which would affect its credit agreements and might send its other investors, such as Bill Gates’s Cascade Investment, running for the exits.

If Six Flags doesn’t begin to recover on its own, Snyder would have to support the stock aggressively. A reverse stock split is one possibility. Or Snyder and his allies, including McLean-based homebuilder Dwight Schar, a Six Flags director, may have to buy all the shares held by the public and take the company private, say attorneys familiar with Snyder’s situation.

Says one lawyer, “He can’t tolerate the price of Six Flags stock being this low for very long. Don’t expect to see the Redskins spending a lot of money.”

Some investors are wondering if the kind of change that turned around the Redskins season—the injury to quarterback Jason Campbell that allowed Todd Collins to shine—might revive the theme-park operator. But the Redskins owner has given no indication that Mark Shapiro, who as CEO gets some of the blame for Six Flags’ problems, would be the latest Snyder employee to get axed.

This article can be found in the February 2008 issue of The Washingtonian.

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Comments

Snyder ruined the Redskins, we need a new owner....

Posted by: Nelly | Feb 09, 2008 08:27:11 PM

We have heard how Joe Gibbs was a childhood hero of lifelong Redskins fan Dan Snyder. It’ s a shame that Danny didn’t have the same respect for previous owner Jack Kent Cooke. JKC might have been an arrogant, obnoxious publicity hound, but he knew enough to leave the operation of a football team to people who actually knew what they were doing. Until Snyder relinquishes the team, we’re all doomed...

Posted by: Dean | Feb 08, 2008 12:54:10 PM

Johnny Rockets now features 100% Rat meat. Dan Snyder sucks. He has ruined the Redskins. Hopefully the distressed situation of his other failed business ventures will force him to sell the team. And hopefully that will be the end of Danny and his sycophant fluffer Vinny Cerrato.

Posted by: Johnny Ratckets | Feb 05, 2008 11:22:13 AM

What happened to Shapiro, the boy wonder? He was full of toxic gas at ESPN but the mainstream press bought his act because HE HIRED THEM TO BE ON TELEVISION!! So they continued to kiss his phony butt. A total fraud will soon get his comeuppance. Good riddance, Marky boy.

Posted by: mediahound | Jan 30, 2008 09:31:39 PM

JaneO, the reason "roving gangs of ghetto hood rats" gets through the moderator is because it’s true. It’s an ugly truth and maybe the terms are a bit out there but then again so is the behavior of a lot of the patrons. I’m not originally from this area and I recently took my 9 year old niece there last summer. The large groups of kids (some of whom were around her age) had absolutely unbelievable language (and I was in the military and have heard it all) and the posturing and taunting was so bad we had to leave within a couple hours. As we were leaving we saw a huge fight start to break out and several teenagers started hollering, cursing and jumping on our car. This was more than just teenagers showing off. I’ve seen similar, if not as bad, behavior at Ocean City, Kings Dominion and Busch Gardens. At this point many theme parks have become flashpoints for the problems of race and class in this country. They’re no longer family-oriented places but places where gangs and hoodlums are starting to set up shop. Being in PG County (which as "rich" as many articles state that it supposedly is still seems to have MANY very poor and dangerous areas, especially inside the Beltway) also probably doesn’t help.

The truth people don’t want to say is that many people are abandoning theme parks (except for the high-end ones like Disney World and the like) because they don’t feel safe. It’s a shame but if anything it seems to expose our divisions in this country. Parks can only be shared if everybody buys into keeping them up and keeping their kids in line and supervised. I’m sure park attendance at this park and others like it is going to continue to decline.

Posted by: John | Jan 29, 2008 08:52:11 AM

sell six flags to warner bros

Posted by: nick | Jan 26, 2008 08:32:29 AM

redskins are over the cap...bye bye lol

Posted by: yoxi | Jan 26, 2008 08:27:53 AM

How does "roving gangs of ghetto hood rats" get through the moderator? Take that comment down!

Posted by: JaneO | Jan 25, 2008 12:02:49 PM

Mike - I was being sarcastic. It wouldn’t surprise me, though. Snyder will charge fans for anything. If he thought making people park @ Six Flags for Redskins games would turn a profit, he’d do it in a heartbeat. And Skins fans would keep on paying for it. Basically, he’s got a cash cow. An inferior to mediocre product that is well marketed, and dim yet rabid fans who don’t know they are being had....

Posted by: DubTee | Jan 25, 2008 12:00:42 PM

As a Dan Snyder employee I just want to say that Mr. Snyder is a great employer and a savy businessman...hold on....What’s this pink piece of paper on my desk......um, anyone looking to hire a pr rep?

Posted by: pabird | Jan 25, 2008 10:24:00 AM

Nice post Dub Tee but you have no idea what your talking about. It cost $35 to park for a Redskins game where you can walk to the stadium. It cost $20 to park where you cant walk but a metro bus ride is included in the $20 parking fee.

Posted by: Mike | Jan 25, 2008 08:01:44 AM

paul miller,

you believe their press clippings too much. there are more important reasons for the failure. it starts with shapiro and his gang of butt kissers.

Posted by: noboby | Jan 25, 2008 07:23:56 AM

Unless it means new ownership for the local NFL team.

Posted by: Norv | Jan 25, 2008 05:22:22 AM

jk. i hope the redskins tank they suck

Posted by: hunter | Jan 25, 2008 12:48:53 AM

One major reason for below expectations performance was mother nature. Bad Weather had a significant impact on the Flagship Arlington, TX park. Extreme heat in other regions. Next year Beer sales will begin at more parks. More days and hours of operation are expected as well.

Posted by: Paul Miller | Jan 25, 2008 12:26:07 AM

I hope this doesn’t affect your face. Or your grammar.

Posted by: Blake BeDickenshire | Jan 24, 2008 11:09:22 PM

i hope it doesnt affect your face

Posted by: Big Snottley | Jan 24, 2008 11:08:27 PM

I have a plan that would bring the parks back on
top

Posted by: Tim | Jan 24, 2008 09:28:15 PM

The theme parks have steadily gone down hill over the years. Decaying rides, high admission prices, outrageous parking fees, astronomical food and venue prices, and roving gangs of ghetto hood rats make the parks an unsavory place to take the family. I haven’t gone in several years. Snyder doesn’t appreciate my business. I happily take my money elsewhere.

Posted by: Six Flags is a joke | Jan 24, 2008 04:56:47 PM

look at the bright side, maybe Snyder will have to SELL the Redskins.

Posted by: mpc | Jan 24, 2008 04:51:20 PM

maybe he’ll have to sell the team....and we can get an owner that will hire a real football guy.

Posted by: lee in pittsburgh | Jan 24, 2008 04:36:00 PM

To improve financial fortunes at the Maryland Six Flags, on Redskins gameday Danny Boy is requiring all ticket holders to park there for $35, and then pay to take a bus to 10 miles the stadium. STOP SUPPORTING THIS INCOMPETENT, MONEY HUNGRY MIDGET!!

Posted by: DubTee | Jan 24, 2008 02:52:26 PM

i hope this doesnt effect the redskins

Posted by: hunter | Jan 24, 2008 08:43:21 AM

Snyder's Six Flags Sinking Fast

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