Caesar's CEO, Loveman, Announces His Departure
In a surprising move, Gary Loveman, the long-standing CEO of Caesars Entertainment, announced his resignation on February 5, 2015. Loveman, who joined Caesars Entertainment in 1998 as a consultant and later became the COO, has been at the helm of the company since around 2003.
During his tenure, Loveman led the company through significant changes, most notably the company's Initial Public Offering (IPO) in 2005 and its acquisition of Harrah’s Entertainment in 2008, which transformed Caesars Entertainment into one of the largest casino and entertainment groups in the world. Caesars Entertainment, originally Harrahs, grew into the biggest casino operator under Loveman's stewardship.
However, Caesars Entertainment has faced numerous challenges. The company has lost money every year since 2009, and in 2015, it filed for bankruptcy protection due to debt from leveraged buyouts and investments. Loveman was involved in efforts to restructure the company during this period.
Loveman expressed pride in the company's many accomplishments and gratitude towards his colleagues. He will continue to serve as the chairman of Caesars Entertainment after stepping down as CEO.
Mark Frissora, former CEO of Hertz, will take over as CEO of Caesars Entertainment on July 1, 2015. Frissora joined Hertz in 2006 after it had assumed billions in debt following a private takeover, and oversaw a subsequent period of global expansion. His tenure at Hertz was marked by accounting and operational mistakes, which led to investors pushing for his removal.
Despite these challenges, Frissora brings valuable experience in restructuring and turnaround scenarios to Caesars Entertainment. Apollo Global Management and TPG Capital, the private equity firms that took over Caesars Entertainment, expressed confidence in Frissora's ability to help create long-term shareholder value at Caesars. Frissora will join the Caesars Entertainment board immediately.
Loveman stated that Caesars has taken the necessary steps to ensure its long-term success. However, the company is currently locked in a legal squabble with a group of its lower-level creditors as it attempts to restructure and put its main operating unit through Chapter 11 bankruptcy.
As COO of Harrahs, Loveman created the Harrahs loyalty rewards program, identifying slots players as the most profitable demographic. Under Frissora's leadership, it remains to be seen how Caesars Entertainment will navigate these challenges and continue to grow in the future.
Finance and business sectors will observe Frissora's leadership transformation as he takes over as CEO of Caesars Entertainment, a casino-and-gambling industry giant, following Loveman's departure. Caesars, despite its financial struggles and ongoing legal squabbles, aims to utilize Frissora's experience in restructuring and turnaround scenarios to secure long-term shareholder value and continue expanding within the casino-and-gambling industry.
