General Manager of Palms Fired! More Fallouts as the Cordova-KAOS Caper of Las Vegas Unfolds
Las Vegas, NV: The Palms Casino Resort's Vice President and General Manager, Jon Gray, quit today in the latest in the Cordova-Kaos Caper . The Palms Casino Resort was purchased by Stations Casino. Stations Casinos was trading under the symbol STN. Their new symbol is RRR - Red Rock Resorts. Red Rock Resorts is holding company that owns a portion of Stations Casino. Sound confusing? It was probably by design. As Vegas moves from a gamblers town to an NFL town, expect to see more light shed on scum bags in this city.
What we know so far: Alex Cordova was abruptly fired last week in connection with the world's largest DJ contract in history worth $60,000,000 for 2 years. Sources say he and other managers were skimming off the top.
It gets bigger. There would be no way for the KAOS Nightclub to ever turn a profit while paying out $60 million for 2 years ($30 million per year) to the DJs.
So How did Alex Cordova and Jon Gray (an experienced hotelier) miscalculate so badly that it cost them their jobs?
The problem with numbers reporting in Vegas is that Las Vegas Sands Corp (The Venetian & Palazzo), own the only local newspaper in town, the Las Vegas Review-Journal.
The Review-Journal will always spin Vegas numbers positively. Even in July 2019 with the sale of Caesars, the Rio and the Bellagio, Rick Velotta from the Review-Journal wrote: "Las Vegas Sands Corp experienced their best second quarter in Las Vegas history".
The problem with numbers reporting in Vegas is that Las Vegas Sands Corp (The Venetian & Palazzo), own the only local newspaper in town, the Las Vegas Review-Journal."
Sounds like Vegas is booming. That is what you would think if you read Rick Velotta's reports on gaming in the RJ. Everything he writes will tell you that it's time to invest in Vegas. And he writes on everything from earnings calls and gaming reports to swaying public opinion on the tax-payer funded stadium and Sheldon Adelson appointing his son-in-law CFO of Las Vegas Sands Corp.
So Why are Casinos Going Out-of-Business While Rick Velotta Says Vegas 2019 is booming?
Yep. If you want to know what's really going on in Las Vegas, follow JediRich.com Studios on Twitter at @JediRichCom, @JediJoyRichShow, @AlienNicShow and @TheNakedJedi and on at YouTube @JediRichCreativeProducer and JediJoy's Blog.
Back to the story. Jon Gray was heading up the $690 million renovation at the Palms which included renovations to the casino, the restaurants and to KAOS Nightclub.
This is not just a "skim some off the top" scandal. This is a calculated scam that involved signing deals worth millions to DJs but paying the artists only hundreds of thousands.
Jon's resignation indicates that he is involved with the Cordova-Kaos Scandal. Last week, Alex Cordova was abruptly escorted out of the casino in connection to some contracts he made with several high-profile DJs; a breached record-breaking DJ deal worth $60 million for 2-years. The last we heard, Alex Cordova was eying Ibiza to avoid U.S. extradition.
The high-profile acts include Marshmellow, DJ Skrillex, Kaskade, Armin Van Buuren and others. We have reach out to Alex Cordova and Jon Gray but they declined to be interviewed at this time citing potential criminal charges.
Jon Gray met with the Ferritta, Lorenzo and Frank III over drinks on Wednesday. Jon says the Feritta's discussed what would happen down the road for Jon. He claims to be "friends" with the Ferittas. Jon says they invited him to see Billy Idol this weekend and they said he can still work out in the corporate gym (awkward).
This brings up the point about men in power in Las Vegas. How many women hold a decision making position at any of the major casinos in Las Vegas? I can think of only one: Elaine Wynn. And that's because she learned how to be more ruthless than her husband from her ex-husband, Steve Wynn (another Vegas scandal).
Do You Ever Get Tired of "Double-Speak?"
Double-speak, reading between the lines, passiveness.... whatever you call it when someone says something with a grin instead of telling you exactly what they are feeling.
For all intensive purposes, Jon Gray was fired. But when you work for your "friends", they don't fire you. That would look bad on your resume; if you even need a resume. Also, the company would have to pay you severance. Let's not get greedy - you are getting fired. So instead you resign.
Last checked, Jon Gray is still married to Miss Nevada 2013. Jon and Ruth have just adopted their third child. He has an expensive wardrobe (see Ruth's instagram photo from back in May). So why would a young executive with a "Family-of-Five", who works a high-paying job for his friends, suddenly quit with no options in sight?
That is called double-speak. We don't know why Jon was fired, but you can count on The Jedi to report the truth as more information becomes available.
This is just another scandal in a slew of scandals that are hitting the streets. Stay tuned to JediRich.com as there is always something going down in Vegas.
Jedi Rich is a former CEO who transformed from a banker into a modern day independent music & film maker.
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