If you owned ASC, what would you do?

[Razor]

I've skied all the ASC resorts, and each one individually has many good points. But the company is a mess. Its stock price has gone from the high teens to less than a quarter, they teeter on the edge of bancruptcy, and we read here and on other boards how much is being neglected due to cash problems. They sold Heavenly and now Steamboat is up for sale. Disregarding how they got in this mess, if you were dealt the ASC hand today, what would you do? This would make a good b-school case study.

 

[andyzee]

Good post, with out giving it much thought, I would do the following:

1. Take the company private, this would reduce the pressure and allow for a change in direction. Too many companies today worry about making a quick profit for stock holders and not enough about future stability.

2. Sell off all hotel and realestate holding. I believe this is what has been killing the company. They are the American Ski Company and should focus on skiing.

 

[awf170]

Put it up on ebay, and hope to get atleast a $100.

 

[MikeTrainor]

Sell them all and buy Wildcat

 

[BeanoNYC]

Give all contributing members of AZ free skiing for life.

 

[ski_resort_observer]

I would sell the Canyons, the Boat, Attitash and the Loaf. Move headquarters to Killington.

With money from selling those resorts buy Wa-Wa, Crotched, Berkshire East, Magic, Shawnee and Seven Springs. Also major upgrades for Kmart, Mt Snow and Magic.

Build first rate concert hall in Rutland for concerts for major acts, there already is a non-stop train from NYC to Rutland.

Buys copius amounts of snow insurance from Lloyds of London

 

[thebigo]

I think the concept of the all east pass was a great idea. Offer the public a pass that allows them to ski their favorite area for day trips but also allows and provides the motivation to ski at alternative resorts on their vacation.

For any that have read kellehr's biography, the 'southwest' philosophy that every empty charilift seat going up the moutain is lost revenue is clearly a winner. However you have to set the price so as not to devalue your 'brand'. There is a fine line between getting the intermittant skier to purchase your pass and overcrowding/undervaluing your hill.

Subsequently, if I was given control of ASC I would first unload both western resorts. I would next unload both maine resorts and make a play for additional resorts in the NH/VT market with potential. Maybe magic, ragged if avail and a cannon lease. Ultimateley I would make a play for local feeder hills that allow the school aged skier to purchase one pass and hit the pipe weeknights after school and also hit kmart etc on the weekend. The only way to grow your brand is to grow your sport. The goal would be to make every skier in new england purchase the all east pass (somewhat nixonian).

 

[ctenidae]

Good post, with out giving it much thought, I would do the following:

1. Take the company private, this would reduce the pressure and allow for a change in direction. Too many companies today worry about making a quick profit for stock holders and not enough about future stability.

2. Sell off all hotel and realestate holding. I believe this is what has been killing the company. They are the American Ski Company and should focus on skiing.

Ladies and gents, in my opinion, we have ourselves a winner. I'd like to nominate Awf for honorable mention, though. That mention and $100 will get you about 400 shares of ASC. And that ought to be enough paper to get a decent fire started.

Mike and Beano deserve some mention, too. Maybe Miss Congeniality for one of you, adn a night out with Marc for the other?

 

[Marc]

I sell to the highest bidder and then go do Jessica Alba.

 

[andyzee]

I sell to the highest bidder and then go do Jessica Alba.

Now that's a weiner!:smash:

 

[Vortex]

I don't have all the figures and . Hard to fix. Seems like the resorts have to be maintaned to keep the value of propeties up. I think more propeties will be sold to get debt down and then it will be sold off in pieces.
No facts just opinons. That is what I would try to do.
Killington and Sr and Sugaloaf would be the places I would keep cause of the closeness to major cities. The booth creek formula.

 

[loafer89]

I would sell off Sugarloaf, Attitash/Bear Peak and Steamboat and hope to generate enough revenue to reduce the debtload that the company has. I agree 100% with andyzee that the hotels and alot of the real estate holdings are what is bogging ASC down. SKII Corp focused only on skiing for the most part and made a ton of money operating KiIlington and Mount Snow. I think that ASC should abandon the idea of building a village at the base of Snowshed, there are more than enough places to eat/sleep and shop without spending alot of money that they do not have to build this.

Sugarloaf, as much as I love it, is too remote and isolated to draw the necessary crowds to make it consistently profitable. I do not know much about Attitash/Bear Peak, but I do not think it is a huge money maker??? Steamboat is fairly isolated and not on the beaten ski path in Colorado, like Summit County resorts are.

Mount Snow is a cash cow for ASC, so I would make sure that it was kept in top shape. Killington is in desperate need of a make over as it's image of having the longest ski season in the east is fast disappearing, and that is what Killington based it's reputation on for more than 40 years. Skiers like to see something new every year (at least I do) and Killington used to install a new lift at least every other year as well as consistently maintain if not improve the physical plant.

The Killington/Pico interconnect needs to be completed, this project alone will ensure alot of return skier visits in the future and will also probably improve the quality of skiing at Pico which is currently suffering rather badly. Snowmaking needs to be upgraded and used aggresively to extend the ski season back to it's original October-June. Even if money is lost in the short term, the marketing value of an extended ski season, more than pays for itself in the end as it has in the past.

ASC need to spend alot more money on advertising their resorts. SKII Corp used to send news letters to their customers in October informing them about improvement/changes to their resorts. This gets people worked up for skiing well in advance of the ski season and helps maintain resort loyalty.

 

[andyzee]

Loafer89, some very good points, I especially like the mention of Pico and the interconnect. Pico is in desperated need of some upgrades and think of the possiblities with and interconnect.Not only would you be joining two really good ski areas, but I imagine more trails could be cut inbetween over time, creating a resort that could rival the western resorts in size.

 

[2knees]

Not to get off track, and this may make me sound like some kind of dinosaur, but if were to own asc I wouldnt do the interconnect. Leave Pico as it is. I havent been back there in many years but the thought of it just getting swallowed up whole into the killington genre is less then appealing. It offers an older style of skiing that is fast disappearing.

 

[loafer89]

Not to get off track, and this may make me sound like some kind of dinosaur, but if were to own asc I wouldnt do the interconnect. Leave Pico as it is. I havent been back there in many years but the thought of it just getting swallowed up whole into the killington genre is less then appealing. It offers an older style of skiing that is fast disappearing.

I understand what you mean when you want to retain the old school style and feel of Pico, but I think that Pico on it's own will not survive. Pico's biggest problem is that it lies in the shadow of Killington which draws alot of skiers away from Pico. I think it is possible to connect the two and still have Pico stay pretty much the same as it is now. Work has been started to connect the two mountains, and it would be ashame to leave it abandoned as ASC has for all these years.

More people visiting Pico through the interconnect would mean increased attention to snowmaking/grooming and facilities maintenance than is currently occuring, because the skiing/riding public would demand it to be so.

 

[JimG.]

More people visiting Pico through the interconnect would mean increased attention to snowmaking/grooming...than is currently occuring, because the skiing/riding public would demand it to be so.

Exactly the reason the interconnect is a terrible idea. I agree with 2Knees.

An interconnect would lead to more vanilla for the home of McMountains. Bleeeech!

I'm a firm believer that sometimes you have to protect people from what they want.

 

[andyzee]

I believe you can build an interconnect and leave the mountain as is. The one outcome would be that it would get more crowded. Going by the theme of this thread, I would build the interconnect, but not change the mountain layout. Without the interconnect, the mountain itself may not generate enough income to survive. Presently lifts and equipment need to be upgraded and that is something the ASC has not done.

 

[rogue rider]

My first order of business would be to cut costs my ordering my minister of propaganda to stop sending mail offers for all for one passes to people who have already bought their passes.

Next I would take one of the snowcats out for a spin just because it looks like fun and I'm the boss.

After 20 min the fun of the snowcat should wear off and I think I would take a similar approach as has been stated. Sell off a number of resorts to pay down the debt. I would also focus on programs that encourage more people to take up skiing and snowboarding.

 

[thaller1]

I would sell off Attitash, Killington and Steamboat.. buy back Sugarbush... (just for me)

Change my company name to NESC (New England Ski Company)...

Hire a team of wicked winter engineers to build snow machines that run off the energy produced by the humidity in the air...cutting down on electrical costs and allowing the company to blow more snow.

GROOM LESS Let's get back to basics..

Get rid of all the ugly condos and build a beautiful log ski lodge for each resort with cabins and hotel rooms at reasonable prices..discounts for Maine/Vermont residents. Down Comforters, comfy beds and oversized tubs.

Get rid of the existing restaurants... put in a Mountain-style pub at each resort with antlers on the wall and a big walk around fireplace..that serves game...pub fare and it's own home brewed beer.

Redecorate EVERYTHING..ugh...

Smile ... a lot and be happy

 

[2knees]

GROOM LESS Let's get back to basics..

amen to that.