Do you need an MBA to run a Vegas casino?
No, you don't. Everyone seems to agree on that point. But that does not mean you should pretend to have an MBA either.
There was a story in the Review-Journal on Sunday that I have been letting irritate me for a few days while deciding if I should mention it here. My reason for leaving it off the Buffet is that the executives of Las Vegas casinos, although local celebrities, do not usually rise to notice in Los Angeles. That certainly is the case with Terry Lanni, who for years was the guiding light at MGM-Mirage -- the company with the largest number of employees in the state.
On Nov. 13, Terry Lanni announced his retirement in the wake of a Wall Street Journal story that day accusing him of having an MBA on his résumè that he did not earn. After an initial defense that this was an honorary degree was shot down by the school there was a vague sense propagated by MGM-Mirage PR that this small detail was the result of a misunderstanding and had no relationship to his stepping down. This is how MGM-Mirage spokesman Alan Feldman explained it to the Review-Journal: "While the Journal's inquiry has made us aware that his official bio was unclear, it had no bearing whatsoever on his decision to retire." It was not unclear, it was flat out wrong, inaccurate, and really, to put it out there, not honest.
MGM-Mirage is now hiring 12,000 positions for CityCenter, and my guess is that if a single one of the applicants lists an MBA the person has not received, that applicant will not be getting a job offer. Still, within Las Vegas, local cognoscenti offered much hand wringing and felt Lanni had gotten a raw deal and received an unworthy exit after years of service to Vegas. The Sunday Review-Journal article presented this view months after his departure, arguing that Lanni had retired on his terms. Actually, that was the title of the article: "Lanni Leaves on His Terms."
Here are a few quotes from the article to give you an idea of how the elephant in the room was treated:
"Others, outside of the company, jumped to his defense, saying Lanni wasn't forced out because of the discovery after 30 years that he didn't have an MBA."
"Others didn't really care if Lanni had an MBA."
In fact, no one interviewed in the story mentions that the MBA was an issue. It wasn't. I agree; no one cares what degrees Lanni had after all he accomplished in Vegas. So let us all agree: if Lanni had an MBA was not an issue. But that and this story asks the wrong question, and that is why it has irritated me so much. Here is the proper question, the question that the story never asks: "How serious is it that the head of a company with an unrestricted Nevada Gaming license presents a degree he does not have inaccurately as his background on his official resume?" And, the answer to that question, of course, the one never asked by the Review-Journal, could be the link between the MBA story and Lanni's same day departure announcement.
There is a second aspect to this puff piece that Steve Friess, on his blog, calls the writer out on. We are told, of Lanni's "30-year record of success" as if no one has read a newspaper for the past few months. MGM-Mirage stock has tanked. The company sold Treasure Island, for what most agreed is a bargain price. And now there is talk that the Mirage (one of the casinos in the corporate name) is on the sale block if not actually finding a buyer. All of this will help with the cash-flow problems caused by the decision to build CityCenter. The completion of City Center, a project whose construction has already resulted in a significant body count of construction workers killed, and had one of its hotels cut back last week because of a mixture of changing credit markets and construction errors, has put MGM-Mirage in a precarious position. In short, Lanni left a very big mess in his wake for his successor; that mess is also not mentioned in the story.
Yes, Terry Lanni did do a great deal for this community and MGM-Mirage. But would someone who really had an MBA have entered into the more than $9-billion CityCenter project at a time that now clearly seems to have been at the very top of the construction and real estate bubble? Just a thought.
The more important thought is that, with casino executives, integrity has to come first. Lanni probably would have had real problems staying in his position after the inaccurate résumè was exposed. Through error or by design, for decades, Lanni's official résumè included a degree he neither possessed nor earned. That is a very serious matter and, yes, vastly more important than if he had an MBA or not.
No, you don't need an MBA to run a casino. But how important unimpeachable honesty and integrity is to running a casino is incalculable. Did Lanni lose his credibility in Vegas over the MBA flap? It is a pity that was a question not put to any of the people interviewed in this story.
Photo: Sarah Gerke
"But would someone who really had an MBA have entered into the more than $9-billion CityCenter project at a time that now clearly seems to have been at the very top of the construction and real estate bubble? Just a thought."
Yes...they would have. How many MBA's were able to avoid the real estate bubble?
And how many more couldn't see past the real estate bubble to the credit crunch?
Besides, this whole thing is crap anyhow. The owners trusted Lanni because he made them profit for so many years...to judge him on one year's performance is pointless. Especially when you consider the current conditions.
Sounds to me like he was trying to create 12,000 jobs.
Posted by: JTG | January 14, 2009 at 11:36 AM
Thanks for reading, You write:
"How many MBA's were able to avoid the real estate bubble?"
And how many more couldn't see past the real estate bubble to the credit crunch?"
Very few. You continue:
"The owners trusted Lanni because he made them profit for so many years..."
I don't disagree with any of this.
But the owners of MGM-Mirage are all the stock holders and not just the single majority share holder. And, this is more than a bad few months. He may, as you say, just have been just trying to create jobs. But the result has been that people have been laid off by that company, TI has been sold, half the ownership of CityCenter itself was sold off. Of course, the stock of MGM-Mirage is worth just a fraction of what it once was worth-- even a year ago. Someone on top must have some responsibility for this?
Again, what is most disturbing to me in this story is not if the man had an MBA, but why his official resume said he had an MBA? Doesn't that question need a better answer?
Also, the idea that this claim was never fact checked is very odd.
As a result, people were buying stocks to own part of MGM-Mirage assuming, as his official biography claimed, that the company was engaged in these complex partnerships, acquiring debt and planning an unprecedented sized building, all under the oversight of a man with an MBA.
And, again, the bigger issue is not the degree but the integrity: how do people feel about the head of a publicly held company, at best, not caring enough to make sure his official resume is accurate? And, this isn't like a degree he earned was left off the resume. Funny how that never happens. This was an unearned degree added to the official resume, and that fact has still not been sufficiently explained. Yrs Richard
Posted by: Richard Abowitz | January 14, 2009 at 12:30 PM
Well written article! I'm not trying to start stuff, but Richard...I just don't understand why you don't bring that same talent and unbiased reporting to CA stuff. The articles are night and day. It's so obvious. It's like you revert back to childhood clicks. Not once have you mentioned about Criss' Foundation, the fans that do like the show, or given credit for a brand new show, placing in the top 10 most of the time since opening against all those other well ridden and ancient acts. Despite the horrid economy. Help me understand, because as a reader, I feel that this newspaper is just an old fashion, wild west lynch mob.
Posted by: Debbie | January 14, 2009 at 07:49 PM
This article presents a very convoluted and misleading view of events revolving around Terri Lanni's resume. Totally irrelevant issues can be found intermingled, causing the reader to make wrong connections and conclusions.
The two main issues that need to be concentrated are both related to integrity issues. The first issue is Terry Lanni's submission of his incorrect and dishonest resume that he wrote some 30 years ago and the second issue is MGM PR's cover-up reaction to the truth coming out.
The first issue, submission of his incorrect and dishonest resume seems to be less significant than the latter. A resume is a summary of academic and work history of a job-applicant. If you misrepresent yourself with an incorrect resume you put two things in risk. (excluding clients such as passengers / patients / students which is not relevant to Terri’s case)
First of all you indefinitely put yourself in risk; if at any point of time your dirty little secret is uncovered (more often in case of public figures) it will look pretty bad and dishonest. People will question your integrity. Secondly for a short period of time you put your employer in risk; for example if you are given a task you do not have the necessary skills to perform then you will eventually fail and from its beginning to its termination (or demotion) your employment will be a waste of your employer’s time and resources.
In Terri's case the only harm done was to him, he suffered from a dishonest act he did 30 years ago. He seems to have functioned pretty well in his organization and among his clients to become the CEO of his company. He may have misrepresented himself but he did not harm anybody. On the other side of the spectrum you have people like Madoff.
The ladder, MGM PR's cover-up attempt is a more serious matter however. The company should have admitted that Terri has lied and wrote about how deeply sorry he was to have lied 30 years ago along with the explanation of why he did it. Their explanation; the cover-up really looked very ugly and it still does.
Excluding the integrity issues, most of the other issues discussed or brought up in this article are very loosely connected if not totally irrelevant. Such as; Terry Lanni performance at MGM, MGM's current financial status, stock value, the comparisons of having an MBA or not having one, creating jobs... These issues may make this article more fashionable and allow the author to stick a fancy such as “Do you need an MBA to run a Vegas casino?” title but it also makes it very convoluted and misleading.
Thanks,
Serhan Kovuk
Posted by: Serhan Kovuk | January 14, 2009 at 09:05 PM
Thank you for reading Debbie. But this article expresses opinions about what was not asked in another article as well as other opinions. I do a lot of original reporting in my work, and I think that is the most important way to get information; but I am primarily a commentator on Vegas
I honestly have approached Criss Angel like any other topic in Vegas. There is no hostility between us. "Criss Angel Believe" turned out to be a really bad show. I wish that was not the case. Right now Vegas needs shows to bring people to town, and I thought the combination of Angel and Cirque had a lot of potential.
On top of that, I wrote about Angel's public behavior last year occasionally: first off because the incidents were newsworthy and second because he is a headliner on the Strip. Further outside the newsworthiness of certain stories, I had not paid much attention to who he was dating until his latest girlfriend started sharing a publicist with Angel and sending out rumors concerning her headlining a Vegas show. Also, her popping up on Larry King, along with Angel, placed them as a couple whose private relationship had a public aspect.
I guess what I am saying, Debbie, is really a question for you: is it really so hard for you to believe that I am just giving my honest opinion on Angel's show?
In everything I write, I am not thinking about the subject, Criss Angel or anyone else at all, but instead I am writing for readers. Those are the readers who are being asked to be paying customers of "Criss Angel Believe." My relationship with my readers is the most important thing I have and not just as writer but personally: the trust they place in me means everything to me.
And, so while I would be first to admit that I write weak stories occasionally, or have an off week where I am not at the top of my game, that is probably in the nature of blogging. But my failures I promise do not come from either a lack of trying or secret agendas.
I would never betray the trust you readers place in me, by speaking ill of a good show or giving anything but a robust shout out to the shows worth the vacation time and money of readers.
Finally, to end on a technical note, keep in mind, no one really knows at all the best selling show in Vegas. There are complicated reasons for this that I will perhaps blog about one day; but all of those lists you see have serious drawbacks as top ten lists. Yrs., Richard
Posted by: Richard Abowitz | January 14, 2009 at 09:34 PM
To hell with Terry Lanni...what we all want to know is...
Does Criss Angel have an MBA??!!??
On a side note:
2007 The Las Vegas Year of Paris Hitlon
2008 The Las Vegas Year of Criss Angel
2009 ????
Posted by: Big Karl | January 15, 2009 at 11:47 AM
"Well written article! I'm not trying to start stuff, but Richard...I just don't understand why you don't bring that same talent and unbiased reporting to CA stuff."
Because he's in Vegas. Vegas is better. And there's enough reporters in CA to cover all the inanities.
"Does Criss Angel have an MBA??!!??"
Ooh, I like that. Maybe his lack of one can be exposed and he can be forced to give up the show. Then the Luxor can back out of a potentially very costly mistake.
Posted by: Rory | January 16, 2009 at 04:57 AM
Thanks for the reply Richard. To answer your question...yes it is. As a reader, every single one of your non CA articles are well written, focused and presents all sides. Every article you write about Criss is tongue n cheek, bashing and only seeing a negative side. There are two sides to every coin.....why don't you present the entire story? I firmly believe that you are part of a "click" of reporters who take great pleasure in using your public forum to be haters because of personal reasons. I suspect the reasons run deep and unfortunately the tourism of Vegas is going to suffer.
I do feel my trust has been betrayed. I've have read too many positive reviews of Believe, peeps meeting Criss after the show and his graciousness, his commitment to give back w/ the kids and most importantly, his art giving people hope, ambition and the drive to succeed.
Posted by: Debbie | January 16, 2009 at 04:33 PM
Terry Lanni not only lied about having a bogus MBA, he lied about having two undergraduate degrees when he apparently only has one legitimate degree; and he lied about having an honorary MBA! It speaks volumes that he also resigned from the MGM MIRAGE board . . . he would have to be licensed in every state where MGM MIRAGE operates and if he misstated his credentials on even one license application, ever, then he'd probably be asked to resign when NJ, IL, MS, etc started investigating and discovered what was on (sometimes) decades-old gaming license paperwork. During his entire career he was able to slide because no one checked, or no one cared, that he embellished his resume. There is a different working environment today. I'd love to see every casino president and vice president in Las Vegas go through the same background check a new hire faces today. Maybe someday we'll see an apology from him to the USC graduates who worked under him at MGM MIRAGE.
Posted by: J | January 17, 2009 at 02:42 PM