Wonder why Cannon can't show profit?

[SIKSKIER]

Auditors reviewing NH state parks were not happy with how Cannon handles it's money.Looks like typical government at work with our money.I guess my credit card # could be compromised.

From WMUR's website:

Audit Of NH Parks Finds Lack Of Fiscal Controls

POSTED: 12:29 pm EDT September 11, 2008


CONCORD, N.H. -- A legislative audit of financial controls at New Hampshire's parks system has found much room for improvement.

New Hampshire's parks system is the only one in the country that by law must be self-supporting. The audit said the parks system might not fulfill that mandate without better internal controls over its finances.

Auditors noted that when fiscal 2008 closed June 30, the four divisions included in the system's revolving fund were nearly $3 million in deficit.

Auditors were especially critical of practices at the state's ski area at Cannon Mountain. Auditors found safes left open, keys left in unattended drawers, cash transactions not done on a register and poor control of credit card information.

 

[Beetlenut]

Let the Muelers run Cannon too!

 

[skier90]

Let the Muelers run Cannon too!

If Cannon was Okemoized I would cry.

 

[Beetlenut]

If Cannon was Okemoized I would cry.

Short of bulldozing the terrain flat, what could be wrong with tons of snow making, good consistant grooming (where possible), great recovery after r@#n events, turning a profit, upgrading lifts, etc...?

 

[GrilledSteezeSandwich]

If Cannon was Okemoized I would cry.

I don't think Crested Butte was Okemoized..

 

[Vortex]

JD the mountain Mgr took over last year. He was from the River. It may take a bit of time to get it up to speed.

 

[riverc0il]

Auditors were especially critical of practices at the state's ski area at Cannon Mountain. Auditors found safes left open, keys left in unattended drawers, cash transactions not done on a register and poor control of credit card information.

While there is some linkage, there audit issues point towards operational security issues rather than profitability issues. That said, as a retail manager, leaving safes open, keys in drawers, transactions not completed, and credit card info not being secured are all major issues and could definitely cause loss.

JD the mountain Mgr took over last year. He was from the River. It may take a bit of time to get it up to speed.

Really surprising this wouldn't be addressed ASAP by a new GM. This is a really basic issue to get correct with a few simple but strict policies. Perhaps there are much bigger issues. But if you can't get the easy stuff right, the big staff isn't going to be where it should be either.

Short of bulldozing the terrain flat, what could be wrong with tons of snow making, good consistant grooming (where possible), great recovery after r@#n events, turning a profit, upgrading lifts, etc...?

Nothing wrong with those things but there certainly is something wrong with letting a real estate development focused company sink their teeth into Cannon. Look at the issues surrounding the Muellers operation of Okemo. They are sueing the state because the state is holding the letter of the contract instead of being bullied around? I question whether Okemo would even want to operate Cannon without the potential for a land grab and development.

BTW- They buried Cannon with snow making last year. I couldn't believe it. I skied Cannon top to bottom on unbroken nearly edge to edge snow during the last week of April and Avalanche was skiable well into May. They also invested in a new groomer last year as well. The current lift structure is already fine and they are planning on installing a lift at Mittersill. So your suggestions that Cannon is not proficient in these areas does not mesh well with recent operations.

 

[Puck it]

From First Tracks Online:


Cannon Mountain, Franconia Notch - Cannon is adding a total of six additional glades and a new trail for this winter. One of the additional glades and the new trail will be located in the Tuckerbrook Family Area, bringing the total in this area to 14 trails and glades. The additional glades will be located on the upper mountain, including four expert and one intermediate glade. Cannon will also be putting names to some existing and unnamed trails, making the mountain easier to navigate. To keep the trails in top shape, a new Prinoth Bison snowcat has been added to the grooming fleet as well.



Where are these glades going to be? Mittersill? Does not sound like it. No mention of lft too!!!

 

[ga2ski]

Come on it is Franconia. People leave their keys in the cars and houses unlocked. What is an unlocked safe or two.

I personally know JD and I'm sure he won't stand for this.

 

[Beetlenut]

Nothing wrong with those things but there certainly is something wrong with letting a real estate development focused company sink their teeth into Cannon. Look at the issues surrounding the Muellers operation of Okemo. They are sueing the state because the state is holding the letter of the contract instead of being bullied around? I question whether Okemo would even want to operate Cannon without the potential for a land grab and development.

BTW- They buried Cannon with snow making last year. I couldn't believe it. I skied Cannon top to bottom on unbroken nearly edge to edge snow during the last week of April and Avalanche was skiable well into May. They also invested in a new groomer last year as well. The current lift structure is already fine and they are planning on installing a lift at Mittersill. So your suggestions that Cannon is not proficient in these areas does not mesh well with recent operations.

I was thinking more in terms of what they did at Sunapee. No Real Estate or land grabs on state land. Their ability to manage a mountain and consistantly turn out a quality product was more what I had in mind.

 

[riverc0il]

I was thinking more in terms of what they did at Sunapee. No Real Estate or land grabs on state land. Their ability to manage a mountain and consistantly turn out a quality product was more what I had in mind.

I actually meant Sunapee in my example, not Okemo. Though that is a good example as well. But they are trying to do that at Sunapee.

 

[Puck it]

My understanding of the Sunapee issue is that need a small parcel of I think 100' transferred to the ski area from the state park. This will allow them to build trails to get to the land that they purchased for real estate development. This is not a huge piece of land.

Cannon was able to do it for ski area development. This will bring in tax money for the town. What is wrong with that and the skiing will be improved.

 

[Smellytele]

While I believe the lifts were improved at Sunapee (they have at Cannon with the money raised from leasing Sunapee as well). The trails have been groomed to death . I have been there when the trails that were not groomed were not opened for some strange reason after getting snow the day before. If what you are looking for is groomed out unnatural conditions I would agree leasing to them is the way to go. I think this would ruin the character of the mountain and take away why I love Cannon so much. As others have stated the article was more about the administrative/personnel issues at Cannon that can easily be resolved (even though they are I believe union state workers).

 

[Geoff]

I don't think Crested Butte was Okemoized.

Have you been there? Other than the surface lift that serves the steep stuff at the far edge of the resort, Crested Butte is very vanilla. It's jammed full of intermediate Texans. The base of the mountain is sprawling with real estate development. The town down the road is way more upscale than Ludlow but it's mostly migrating towards that fake mining town for rich tourists thing that is common in Colorado. You have a steady influx of steel & concrete buildings with facades that look like the old shacks they repaced.

There's one remaining center pole double chair that starts where they have that mid-mountain ice bar. That's pretty much the remaining character to the ski area other than the really steep stuff at the boundary and Crested Butte, like Aspen, doesn't get a whole lot of snow so that terrain can be iffy some years.

 

[SIKSKIER]

JD the mountain Mgr took over last year. He was from the River. It may take a bit of time to get it up to speed.

I had a chance to talk with JD a few times last year and he impressed me.I am also good friends with the former MM for the last 10+ years and he also is a very good man.Most of the time their hands are tied by the higher ups in Concord.I was not infering inferior management but I guess when issues like this arise,one must look at the top guy.Having said that,I would never want to see Cannon privatized.The normal Cannon quirks are part of what makes Cannon Cannon.But some of these issues would not be acceptable in the private sector.
As a side note,the for the first time in my 30+ years at Cannon,they are having an outdoor music festable at the Peabody base area on October 4th.Dickie Betts and Great Southern,with Comander Cody and the Boston Horns.Info on the website.

 

[SIKSKIER]

BTW- They buried Cannon with snow making last year. I couldn't believe it. I skied Cannon top to bottom on unbroken nearly edge to edge snow during the last week of April and Avalanche was skiable well into May. They also invested in a new groomer last year as well. The current lift structure is already fine and they are planning on installing a lift at Mittersill. So your suggestions that Cannon is not proficient in these areas does not mesh well with recent operations.

Agree Riv.Last year was one of the very few times I watched them keep making snow day after day when they already had plenty of coverage.DRED just approved $1.4 million for work on the tram,detach,both Peabody lodges,snowmaking pipe,and studies for the new lift at Mittersill.Still waiting for the final approval of the land swap so they can move forward with the Mittersill project.Was there last Wednesday and they cut a new traverse from the top of the Tuckerbrook quad to the top of Asa's Acre(pony slope).

 

[riverc0il]

As a side note,the for the first time in my 30+ years at Cannon,they are having an outdoor music festable at the Peabody base area on October 4th.Dickie Betts and Great Southern,with Comander Cody and the Boston Horns.Info on the website.

Nice! Boston Horns are a well known group. Pretty kicking though I would love to hear them without catering to the crowds as much, but that is where the money is. The area outside the Peabody Base Area is a perfect area for a music festival. So much flat real estate, plenty of close parking, facility for beer and food, etc. Not to mention great location.

 

[mattchuck2]

I know the real reason that it doesn't show a profit. . .

I don't know if they do this anymore, but when I was there for a PSIA event, I got half price beers in the bar. I was told that all Canon instructors (and presumably patrollers and lifties) got half price beers in the bar. After a ridiculous spit take, I pondered just how much beer I would possibly drink at my mountain if beers were $2.50 instead of $5.00. I also thought about how many instructors would have to be carried out of the place. . .

Cheap beer + Ski Area Employees = Craziness

(I know they're still making a hefty profit on a keg with $2.50 beers, but the point of this post is to encourage more mountains to adopt this practice)

 

[SIKSKIER]

I know the real reason that it doesn't show a profit. . .

I don't know if they do this anymore, but when I was there for a PSIA event, I got half price beers in the bar. I was told that all Canon instructors (and presumably patrollers and lifties) got half price beers in the bar. After a ridiculous spit take, I pondered just how much beer I would possibly drink at my mountain if beers were $2.50 instead of $5.00. I also thought about how many instructors would have to be carried out of the place. . .

Cheap beer + Ski Area Employees = Craziness

(I know they're still making a hefty profit on a keg with $2.50 beers, but the point of this post is to encourage more mountains to adopt this practice)

I believe that whoever has won the bid for the consessions has to give discounts to all employees.A good friend (Woodstock Station)had it for 7ish years before the current operation.

 

[SIKSKIER]

Nice! Boston Horns are a well known group. Pretty kicking though I would love to hear them without catering to the crowds as much, but that is where the money is. The area outside the Peabody Base Area is a perfect area for a music festival. So much flat real estate, plenty of close parking, facility for beer and food, etc. Not to mention great location.

I'm definately going to be there at my house anyway.I want to see what the setup will be before shelling out any $.I might go to Mittersill this weekend and see if I can find out more.