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Jay Peak bombshell

Newpylong

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That's my concern as well. As @Smellytele said, Ragged has had trails cut on Pinnacle for 10 years now without any further advancement. That's a pretty major red flag- not just financially but leadership as well. To sink the costs of planning, approval, and trail cutting, without evidently never having enough capital to finish the job with a lift, snowmaking, and grading.... well that's just a bad look and shows management may be one to bite off more than they can chew.

Yeah, Jay needs a ton of high-capital projects. A detachable replacement for bonnie, a ton of snowmaking improvements, and a replacement for the Flyer all need to be undertaken in the next 10 years. While still running the money sink of a tram. Hopefully they can manage, I wish them the best.
What sunk costs? What approval process? In NH on private land you apply for your timber tax permit then you pay it after you're done cutting. They have done nothing beyond that. They felt they weren't too far off from kicking the project off and decided to get some logging in. Not much more to it than that. If you go ride there you won't hear anyone say, "boy it's too bad they started that; wish they'd finish". It's more a "meh, if it happens it happens, this place is special hopefully nothing changes anytime soon".
 

Smellytele

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Right where I want to be
What sunk costs? What approval process? In NH on private land you apply for your timber tax permit then you pay it after you're done cutting. They have done nothing beyond that. They felt they weren't too far off from kicking the project off and decided to get some logging in. Not much more to it than that. If you go ride there you won't hear anyone say, "boy it's too bad they started that; wish they'd finish". It's more a "meh, if it happens it happens, this place is special hopefully nothing changes anytime soon".
Low expectations
 

thebigo

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Steve Wright, Jay Peak’s general manager, said there has been a “pretty sharp increase” in interest since news of Pacific Group Resorts' initial bid of $58 million had been reported earlier this month.

“There are multiple potential (and incremental) bidders at this point, but not at liberty to really disclose specifics at this point,” Wright said in an emailed response to VTDigger’s inquiry.

“As of the filing of this Motion, the Receiver believes that a competing bid may be submitted for the Jay Peak Resort,” the filing stated, adding that the deadline set for competing bids is Sept. 2.

“If a competing bid is submitted, the Receiver intends on conducting the Auction on September 7, 2022,” the filing stated.

 
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slatham

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Apparently all those firms that had “no interest” in Jay Peak were assuming a price much higher than $58mm.

Like the saying goes, everyone has a price.
 

KustyTheKlown

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not surprised that someone is gonna scoop in just please for the love of everything dont be vail. alterra, boyne, powdr, all fine.
 

St Stephen

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No Ski company behemoths please
Hoping it stays Indy with current management team and employees
 

Zand

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Pacific could always increase their bid too. $58 million seemed way too low but it has to start somewhere.
 

PAabe

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Knocking on wood here but Jay is really in the middle of nowhere and not really on your average coastal skier's radar. It isn't really "ready to roll" for Vail's required capacity, unlike other places they have bought. Half the place is glades which Vail doesn't seem to have an affinity for. And while there is lodging, it isn't as many rooms as most of the non local destinitation places they targeted to snatch up (excluding package deals like Wildcat/Peaks). It just doesn't seem like le Epic style unless they're trying to capture the Montreal market which is still a little dicey with the border crossing. Plus they already bought several new areas for this year and are spending a tremendous amount on new lifts, as well as increased operating costs over last year with the pay rate.

It would be beyond tragic if they somehow conjured cash out of thin air to snatch it up like they did last year when we all thought they couldn't possibly buy any more ski areas. My hope is that she's just too weird of a ski area for Vail.
 
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skef

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It would be beyond tragic if they somehow conjured cash out of thin air to snatch it up like they did last year when we all thought they couldn't possibly buy any more ski areas.
If I'm reading this right, they've got north of a billion dollars in cash/cash equivalents:
vcash.PNG
 

drjeff

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If I'm reading this right, they've got north of a billion dollars in cash/cash equivalents:
View attachment 54699
That 1.2 BILLION of cash on hand in their balance sheet has been widely reported over the last few months. Guessing that number has decaresed a bit now due to paying out some of the capital projects they've been working on this Summer, but if their Epic Pass Product ssles have been as strong as also has been reported, then hopes that some seem to have of them being finacially insolvent and going under seem to be just a pipedream right now
 

thetrailboss

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That 1.2 BILLION of cash on hand in their balance sheet has been widely reported over the last few months. Guessing that number has decaresed a bit now due to paying out some of the capital projects they've been working on this Summer, but if their Epic Pass Product ssles have been as strong as also has been reported, then hopes that some seem to have of them being finacially insolvent and going under seem to be just a pipedream right now
Well......remember that they raised some capital near the end of 2020 in order to get through the difficulty posed by COVID. I believe that constitutes a good amount of that $1 billion that is sitting there. I believe that their plan was to get some more cash on hand because things were so crazy. I believe someone in here pointed this out when they were doing it. I don't think that amount is all "profit" from Epic.
 
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