Who Owns LAS Ferrari Store?

Wynn Hotel.

 

The Las Vegas Wynn Penske Ferrari dealership is owned by UAG (United Auto Group) a publicly traded company. Mr Penske is UAG's chairman and Wynn Hotel is the dealership's landlord, probably with a revenue clause in the lease. I am really not aware if there is any ownership stake of the dealership held by the Wynn hotel, or Steve Wynn personally.

 

Steve Wynn IS part owner of the dealership. Trust me on this one.

 

UAG's corporate website claims that the Penske-Wynn dealership is a UAG dealership, which implies that the corporate parent owns it. I emailed investor relations to find out the ownership makeup.

 

Both Mr. Penske and Mr. Wynn made it clear during the dealership opening event that they were joint owners. (In fact, Wynn obtained the rights first, then brought Penske/UAG into the picture.) So if investor relations tells you otherwise, perhaps you should let the two of them know. Especially Mr. Wynn.

 

But the store to the best of my understanding is a Wynn only store. Nothing to do with U.A.G.

 

According to United Auto Group’s SEC 10-Q latest filing on 5/5/05 for the period ending 3/31/05 they own 50% of the Las Vegas Ferrari Maserati dealership. Ownership of the other 50% is not outlined, but it is not a “related party” such as Rodger Penske as these relationships are properly noted as required by the SEC. Penske and his businesses control 41% of UAG.

 

Thanks Roy - I guess that clears it up. UAG and probably Wynn resorts. We could probably check Wynns 10-Q for the same period.

I would find it hard to believe that anyone of that kind of profile (Steve Wynn or Roger Penske) would directly and personally own a dealership. The Liability issues would be enormous.

 

Alex,

Good idea, I didn't even think to look.

Wynn has an affiliate company, Kevyn, LLC which owns 50% for $1M and UAG owns 50% for $1M in a partnership called PW Automotive, LLC. It also appears that Ferrari valued Mr. Wynn's branding of the dealership.

Here the scoop from the Wynn Las Vegas LLC and Wynn Las Vegas Capital Corp. S-4 filing from 5-20-2005:

"The Ferrari and Maserati Dealership. Wynn Las Vegas has on-site an authorized, full-service Ferrari and Maserati dealership, including a service and maintenance facility. Currently, there are only 32 Ferrari and 45 Maserati dealerships in the United States, and our dealership is the first in Nevada. The dealership is located near the main entrance to the hotel. Our affiliate, Kevyn, LLC, has formed a joint venture with United Auto Group, a New York Stock Exchange-listed operator of auto dealerships whose largest shareholder is the Penske Corporation. United Auto Group is experienced in first class, exotic car dealership operations, and is primarily responsible for the management and operation of the dealership through the joint venture. Kevyn, LLC and United Auto Group have each invested an initial $1.0 million in the joint venture for working capital, and the joint venture is required to pay market rent for the space to operate the dealership, pay for tenant improvements and allocate profits and losses equally to United Auto Group and Kevyn, LLC. The dealership must satisfy certain financing and other ongoing conditions, including minimum working capital and net worth requirements, and we must also continuously meet all capital, facility, personnel, customer satisfaction and operational standards of Ferrari North America and Maserati North America. Under the agreements with Ferrari North America and Maserati North America, Mr. Wynn may not hold less than 20% of Wynn Resorts’ issued and outstanding voting stock without the prior written approval of Ferrari North America and Maserati North America, which approval will not be unreasonably withheld. Mr. Wynn currently meets and, is expected to continue to meet, this requirement. The Dealership commenced operations on April 28, 2005."

It would seem that we still haven't answered the original question of who owns the Ferrari store selling logo ware. The S-4 isn't very helpful:

"Retail Space. Wynn Las Vegas includes approximately 76,290 square feet dedicated to 31 retail shops. We have entered into leases for five retail outlets with Cartier, Chanel, Christian Dior, Graff and Louis Vuitton. We or other retailers operate the remaining stores, including a golf shop and other shops selling, among other things, men’s clothing, women’s apparel and accessories, women’s shoes, art, watches, jewelry, sundries and proprietary Wynn Las Vegas products, either under license agreements or through joint ventures with other high-end, brand-name retailers such as Brioni, Oscar de la Renta, Jean Paul Gaultier, Anne Geddes, Judith Lieber and Jo Malone. "

 

FWIW, Kevyn is ilkely named after Steve's daughter.

I suspect Red is correct about Wynn owning the Ferrari store. I can check when I get home.