Faulkner University

Six Flags' (NYSE: SIX) transformation into a family-friendly brand with household-name partners continues. The chain of regional amusement parks announced this morning that it would hook up with Sara Lee (NYSE: SLE) to make the diversified conglomerate's Ball Park hot dogs the official frankfurter of Six Flags.

The deal follows similar culinary moves last year, including partnerships with ColdStone Creamery and Papa John's (Nasdaq: PZZA). Inedible pairings were also recently signed with Home Depot (NYSE: HD) and Nintendo (OTC BB: NTDOY.PK).

As one industry insider recently suggested to us (and we believe that they really meant it as a compliment to Mark Shapiro and his team):  the Disney-ification of Six Flags continues.

Then again, some have also suggested that the Six Flags-ification of Disney might be coming soon...

The 10-year licensing agreement with Nickelodeon, the children's cable TV network owned by media giant Viacom, could help dispel lingering doubts among some retail observers about whether the mall had lost its way, and could give it some extra momentum as it prepares to double in size.

Great Wolf's near-term plan is to enhance existing locations. Adding new watery attractions, and taking a page out of rival Kalahari's playbook by adding miniature golf courses, should help make the resorts better all-in-one destinations.

The more the better, because competitors are closing in. InterContinental's (NYSE: IHG) Holiday Inn chain has been adding small indoor waterparks to some of its locations. Theme park operators Six Flags (NYSE: SIX) and Income Investor pick Cedar Fair (NYSE: FUN) have also joined the mix, each watching over an indoor waterpark resort adjacent to one of its amusement parks. Even Disney (NYSE: DIS) hinted at a future of building indoor waterpark resorts as a way to create stand-alone locations in key markets.

3.02.07

A fight inside an amusement facilities--between two contract employees--cleaning out a hippo habitat--where one of the two ends up doused in gasoline by the other--who then, apparently, threatens to ignite the doused co-worker?

It happens.

Both men work for a specialized contractor, which provides divers who can clean out the ponds throughout the park, said Walt Disney World spokeswoman Kim Prunty. The company, which was not named, has worked for Disney for "many years," she added.

Disney officials have suspended the contractor's work, pending a review of the situation. "Obviously, this type of behavior is not tolerated on our property," Prunty said. "We expect that they will take care of this matter appropriately."

The ironic thing is that this strange event ended up overshadowing this big business-related newsthat Disney just announced:

Walt Disney World President Meg Crofton this morning announced two new projects at the resort: a luxury resort and golf course community in Bonnet Creek and a mixed-use commercial center for "value-conscious" guests just outside the western edge of its property.

Most interesting:  the new luxe resort will be operated and branded as a Four Seasons. 

The troubles with X go beyond lines and maintenance time. It made the company that built it a casualty of the coaster wars. The decades-old Arrow Dynamics, a pioneer in steel coasters that in 1975 opened the first modern looping coaster, went bankrupt in 2002, the same year X opened.

The ride proved so complicated that Six Flags had its own engineers redesign parts of it because they didn't work, according to a complaint filed in federal bankruptcy court. Six Flags claimed an ownership stake in the ride's technology because of modifications from its own engineers.

Arrow countered in court that Six Flags scared away potential buyers, by telling them it had partial rights to X's technology, and tried to have the only "fourth-dimension" coaster in the world.

The two sides settled their dispute in 2003. Arrow eventually was bought by S&S Power Inc. of Utah.

And, on the business side of things, here's an interesting articleon the economic issues facing some of Florida's smaller amusement facilities and how they survive being dwarfed by the bigger ones:

When it comes to theme parks, it's almost impossible not to think about Busch Gardens, Disneyor even Universal. But before the major parks took over, the thousands of tourists Florida would welcome from the very start of the automobile age depended more on what would best be described as roadside attractions -- places like the original Cypress Gardens in Winter Haven and Weeki Wachee Springs near Brooksville.

As the larger parks continue to grow, taking in more of tourists' time and money, the smaller parks have become an endangered species. Unlike the full-size, lifelike reptiles that have invaded its grounds, however Dinosaur Worldis far from extinct.

2.22.07

A "Regional Disney"?  That's one vision that Six Flags' CEO, Mark Shapiro, has for his company:

Surrounded by dancers and Looney Tunes characters, Six Flags Chief Executive Mark Shapiro told state and local tourism officials that the theme-park chain can be a "regional Disney."

Plus, it looks like Disneyland has won a key regulatory matter before the Anaheim City Council:

A 2-2 vote by the Anaheim City Council Tuesday night killed a proposal to allow 225 apartments and 1,275 condominiums to be built near Disneyland, a project opposed by the Walt Disney Co.

It's not immediately clear whether the project can be brought back before the City Council.

Although some Anaheim City Council members saw the project as a way to add needed housing to Orange County's second-largest city, Disney company officials said it would disrupt the tourist environment and street scene it has worked hard to create outside the gates to Disneyland and California Adventure.

The Anaheim Planning Commission unanimously rejected the housing plan last month.

2.21.07

So, what if an amusement facility is aware that a celebrity guest may be stopping by? 

Here's an exampleof the importance of having specific operational policies in place to handle such a visit--not just for the safety of the celebrity but also for the other guests.

Meanwhile, on the business side of things, this articleexamines the fiscal outlook for Six Flags in '07:

Revenue for Six Flags, the world's largest regional theme park operator engaged solely in the theme park business, is expected to increase about 9% to $1.1 billion in 2007, according to the Reuters consensus estimate.

in the months ahead Wall Street will scrutinize key metrics for park attendance, average day fares, and revenue per attendee. But equally significant will be channel checks that evaluate the overall consumer experience at SIX's parks. In short, Wall Street wants to see that families, not just teenagers, are attending in large numbers, that both the kids and parents are happy, and that families in particular come away from the day's experience feeling that they received a good entertainment value from SIX and that they'd visit the park(s) again.SIX's stock price, which closed Friday at $6.13 down 2 cents, has meandered between $4.50 and $6.50 for the better part of a year, which is indicative of Wall Street's lack of a conclusion regarding the company's operations.

2.20.07

As our readers know, The Update is a big proponent of the importance that local legal and regulatory issues mean to amusement facilities.  This often relates to land use and local tax issues. 

However, it can also manifest itselfin a variety of other important ways:

The city's Liquor Licensing Commission has heard a request from Six Flags New England to change the all-alcohol liquor license in the picnic grove to the amusement park, specifically the water park, and the beer and wine license to the picnic grove.

And, as with any company, potential workers comp claims can often be costly for amusement facilities--both in terms of lost work time and actual monetary costs.  Therefore, Universal Orlando deserves kudos for its effortsto reduce potential ergonomic injuries (think, carpal tunnel syndrome and the like):

Can changing one or two things about the way someone does his or her job lead to savings for a company? And lead to a safer place and higher morale? Thirty-two special companies worldwide say yes. They are all contenders in the prestigious Ergo Cup Award competition and will be demonstrating their solutions at the Applied Ergonomics Conference, March 12-15, 2007 in Dallas, Texas. Only 3 can win.

Companies as diverse in operations and products as Boeing, Bridgestone, Dell, Delta Airlines, GE, Honda, J&J, Mary Kay, Harley Davidson, Toyota, Universal Orlando, and Sunrise Medical can prove that making process improvements from an ergonomic perspective, no matter how small, reaps big benefits.

2.19.07

This is an interesting example of how an amusement facility can work with government regulatory officials in providing for operational safety:

The ownership of Ghost Town in the Sky today entered into a partnership with the N.C. Department of Labor sanctioning state inspectors to monitor each step of amusement park’s renovations for safety.

Under the agreement, inspectors will visit the Ghost Town property and the work site of the ride re-manufacturer in Knoxville, Tenn. over the next 98 days to check everything against state code before a final examination on the eve of the park’s anticipated May 25 re-opening.

…

Ghost Town’s new owner Hank Woodburn said he consulted with state inspectors last year before purchasing the park, requesting input specifically on previous problems with the chair lift and rides. Soon after buying the park, he invited Petty to observe a pull test on the chair lift towers and began working closely with state officials.

Meanwhile, it looks like an industry organization is teaming with a magazine and statistics firm to put out a new version of the amusement industry attendance figures that the now defunct Amusement Business used to provide.

One word of caution though:  while we’re interested in reading them, The Update recently did some research in this area and discovered pretty quickly that its harder than ever to actually get figures that are anything more than an educated guess.  This is true because more than ever before, amusement operators are not disclosing these figures—even the ones that are publicly-traded companies.

2.18.07

Here’s an interesting (though quite cynical) story about what appears to be an interesting upcoming event related to the law and the amusement industry:

Likely Discussion Topics:

* How the role of "outside" counsel is different when representing a client such as Cedar Fair (the owners of Cedar Point amusement park) which has no in-house legal department.

* Trademark and copyright issues in the amusement park context

* Special risk management concerns in the amusement world

* An M & A case study

If you can get past the actual misguided blog entry mentioning this event, then we think you’ll find the actual event agenda quite interesting.

2.17.07

This story discusses a local sewer assessment dispute between an amusement park and a municipality that could get pretty expensive:

Dalton Township won the first round of a legal battle with Michigan's Adventure Amusement Park over a controversial $640,000 sewer assessment.

At a recent pretrial hearing, Muskegon County Circuit Judge William C. Marietti agreed with the township that the Michigan Tax Tribunal, not the local court, should handle the park's appeal of the sewer assessment.

The park had questioned the legality of the assessment and sued in circuit court to block the township from collecting it.

On the business side of things, this note discusses how Cedar Fair is re-positioning at least one of its parks post-Paramount purchase:

Steel Venom: Missing in Action

Cedar Fair is reportedly moving Geauga Lake in a new direction. News about X-Flight moving across the state to Kings Island and becoming Firehawk has already surfaced. Steel Venom, an Intamin inverted launch coaster, has been removed as well. The question is where will Steel Venom be sent to.

2.16.07

It looks like the City of Tulsa has reached a settlementwith the families of the two children who died after apparently contracting a rare waterborne illness while playing at a municipal-owned splash pad attraction:

The city of Tulsa has agreed to pay a total of $315,000 to the parents of two unrelated children who died from a rare, water-borne disease after playing at a Mohawk Park splash pad in the summer of 2005.

...

The parents alleged in their lawsuit that the city was negligent in the deaths of their sons. Terrell Hampton II, 9, and Martinez Owens, 7, both died Aug. 5, 2005, after becoming sick with the naegleria fowleri infection days earlier. The $315,000 will be split evenly between the two families.

What a truly heart-breaking story...

And then there's this interesting proposed legislationin Virginia that would include amusement facilities within its scope:

Dining 'n dashing risks larceny and felony
RICHMOND, Va. -- A House committee recently approved a bill that would make failing to pay certain service charges a larceny.
The Courts of Justice voted 18-0 in favor of this legislation sponsored by Del. Robert Bell (R-Charlottesville), which would define the defrauding of hotels, motels, campgrounds, restaurants and amusement parks as larceny.
Under the current law, the maximum penalty for this offense is considered a misdemeanor; no matter how many times the violation occurred.
The bill was presented to Bell by Charlottesville police officer Michael Flaherty, who had experiences with repeat offenders who would order food and never pay.
"The bill would formally define this conduct as larceny, which means that upon a third or subsequent offense, it would be categorized as a felony," Bell said.

2.15.07

More proof that local legislative matters can make for important regulatory happenings in the amusement industry as both this storyand this storytalk about two different local tax disputes that amusement facilities are dealing with.

Also, here's an interesting storyfrom this month's RecManagement magazine about safety at recreational facilities. 

2.14.07

We're not sure what's stranger--the fact that there's an amusement park known as "Stalin's World" or that there's now a copyright dispute related to it:

Is a communist-era statue of Lenin art, should it be subject to royalties and is it less artful when covered by a black plastic bag?

Those questions are at the heart of a copyright dispute being played out at a quirky theme park in Lithuania popularly known as "Stalin's World."

Sounds like Lithuania needs a national IP enforcement czar...

2.13.07

Coming to Sandusky, Ohi  The Country's Largest Waterpark.  At least, that's the claimthat this park is making:

An expansion planned for an indoor water park that opened nearly two years ago will make it the nation's biggest, its operators said.

Kalahari Resorts said it plans to double the size of its water park, making it bigger than the company's water park in Wisconsin Dells, Wis.

And this storydiscusses criminal charges facing one park employee hired to dress as a costumed character:

2.12.07

This storydiscusses a recent incident at Sea World where an employee was injured while cleaning one of the park's animal facilities:

Gold Coast tourist attraction Sea World has offered counselling to a diver struck in the head and neck by a 240kg dugong and to the staff who rescued him.

The 35-year-old diver was rushed to hospital in a neck brace after the dugong, named Pig, became entangled in dive equipment while his tank was being cleaned on Thursday morning.

It's a bizarre incident because dugongs are normally placid but curious creatures of the sea.

Note:  this Sea World parkis not one of the Busch SeaWorld parks, but a different park in Australia. 

Meanwhile, here in the U.S., a lawsuit has been filedpitting water park owners against each other:

A legal dispute has surfaced between the two owners of the Splash Down Dunes Water Park in Porter.

Fred Pearson filed suit this week asking the courts to appoint someone to take over the management of the park and to order co-owner Paul Childress not to interfere.

2.11.07

2.10.07

Here'sa curious story about allegations from the state auditor's office regarding financial improprieties at an aquarium

“It was discovered that (aquarium President Phyllis Bell) had improperly handled funds in ways that were not in accordance with generally accepted accounting principles,” Rives said Tuesday. “And the financial audit that TKW prepared gave no indication there had been any incorrect accounting entries in the aquarium’s financial statements.”

After the financial audit was issued, it was discovered that Bell had reported a nearly $1 million loan as a donation, allegedly to hide construction project cost overruns, and the Board of Accountancy said TKW should have questioned that entry.

Obviously, this is an issue that should be addressed when it comes to putting good legal controls into the operational side of the business.  That won't necessarily catch all cases of alleged fraud, but it can mitigate the facility's potential liability for negligent oversight or hiring.

Meanwhile, on the business side of things, one high profile financial analyst really likesSix Flags:

"I like Mark Shapiro who runs Six Flags very much. ... I like Six Flags at lot more than I like the Redskins' chances."

And, speaking of Six Flags, here's a storyabout reassessing the value of some of the company's properties:

Two companies have submitted bids for the job of assessing the value of all property owned by Six Flags in the municipality.

The appraised value of the land determines the amount of taxes that are paid by the owner of the popular theme park on Route 537 near Interstate 195.

Six Flags is the largest taxpayer in Jackson. According to tax collector Mike Campbell, Six Flags paid more than $3.7 million in taxes to Jackson in 2006.

2.09.07

The Outdoor Amusement Business Association has posted information regarding proposed federal regulations that would affect mobile amusement attractions.  Just go to www.OABA.organd click on DOT under the Government Affairs tab.

Also, this articlediscusses some of the current Six Flags financials in great detail:

What's interesting is the amount of negativity which has been assigned to Six Flags. The company recently divested seven parks in its bid to realign operations in order to service debt. Despite total proceeds coming in at $312mvs. the $710m forecast by Capital Group research, the common shares still jumped on the news. Note that this was by selling the company's worst properties. They still have another ~23 properties, which are worth far more. Six Flag's Magic Mountain alone has said to be worth well over $200m. (this was at first to be sold, but in the end was spared, estimate was a casual observation in a Jim Cramer/SIX interview, see below)

The company's turn-around for 2007 looks to be on track, and if this continues, common shares should see further strength while high yielding senior notes could increasingly look like a steal.

And, this storyincludes some discussion on the value of the Busch park properties:

To that end, the Entertainment business (Busch Gardens and Sea World), which is run much better than Six Flags but not as well as Cedar (FUN), could be sold for 1.7x sales, or $2 billion.  The packaging business is low margin, and only worth 4-5x operating earnings, or about $700m total.  The 27% stake in Tsingtao brewery and the 50% stake in G. Modelo are both worth on the high end of industry multiples at 2.2x sales, providing values of $830m and $4b, respectively.

2.08.07

This month's Funworld has an interesting articleon the SAFETY Act and how it affects amusement facilities.

And, a South Korean court has awarded damagesin an amusement attraction case that we'd posted about before on The Update.

Meanwhile, on the business side of things, there's been some interesting news despite the fact that most of the industry is in the quiet winter season.

First, regarding Cedar Fair, the Motley Fool business column has this article:

In a transitional year that found Cedar Fair (NYSE: FUN) swallowing down amusement-park rival Paramount Parks, this morning's fourth-quarter results from the thrill haven won't leave much of a mark.

The regional park chain posted a small operating loss for the quarter that ended in December. That's a contrast to the slight profit the company squeezed outa year earlier, but it's understandable. This is a seasonal business, and most of the company's parks close when October's Halloween-themed events wrap up. In fact, if you back out the new parks, Cedar Fair actually improved its financial performance for the typically sleepy three-month period.

And, here's a storywhere Disney's head park executive, Jay Rasulo, discusses the possibility of Disney opening regional resort and amusement attraction destinations:

The Walt Disney Co. is considering “blue sky concepts” of creating smaller theme parks and stand-alone hotels, retail, dining and entertainment centers, Jay Rasulo, chairman of Disney’s Parks and Resorts told analysts at a conference on Wednesday.

2.07.07

Here'san interesting press release from the State of Oklahoma regarding amusement attraction safety:

"Amusement ride inspections are just a snapshot in time," Reneau said. "Oklahoma has among the most stringent amusement ride laws in the country. But laws alone aren't enough to guarantee ride safety. Parents and other park patrons should listen to ride operators' instructions and heed the warnings on posted signs."

And, on the business side of things, news outlets are reportingthat negotiations for Disneyland Bahrain are in the works.  Disney denies it though.

2.06.07

The Mall of America vs. Waterpark of America intellectual property dispute has settled:

The Mall of America's lawsuit against the owner of Water Park of America, claiming the attraction improperly copied the shopping center's name, was settled this week.

The specific terms are confidential, and Jeffrey Wirth, whose Wirth Companies owns and operates the water park, said he could "only speak to the nature of the agreement." But he said it involves a licensing pact that allows him to keep the Water Park of America name. He also can add "Mall of America" to the formal name of the attraction and the hotel to which it is attached, the Grand Lodge.

In exchange, Wirth said, he will pay the mall's owners "a reasonable fee."

And, on the business side of things, it looks like the proposed Legoland park in Kansas City is going to require some major public funding:

Developers may ask taxpayers to foot 80 percent of the cost of a proposed Legoland amusement park and aquarium in Lee's Summit, KMBC's Micheal Mahoney reported.

This may explain one reason why nearby Olathe, Kansas (a suburb of K.C.) recently declined the opportunityto have the project.

2.05.07

A grand jury has returned indictmentsin the Six Flags Great Adventure ticket fraud cause:

An Ocean County grand jury has charged five men with using a forged instrument to allow people to enter Six Flags Great Adventure theme park in Jackson without
paying.

The grand jury handed up an indictment recently charging the defendants with possession of a forgery device and uttering a forged instrument.

"Amusement Tax is a Serious Issue":

State Comptroller Peter Franchot is warning tavern owners with video poker games, pool tables and jukeboxes that they have until next week to set up a tax account with his office or face possible audit, fraud penalties or criminal prosecution.

Also, this storydiscusses the possibility of legislation that would ban sex offenders from working, among other places, at amusement facilities in New York.

And, from the business side of things, this storyincludes an interesting analysis of why Dollywood continues to be a successful regional park:

Not sure about you but a Super Bowl Halftime show featuring Mr. When Doves Cry doesn't really do it for us...so, let's do an Update instead...

First off, one amusement operator has sued the state of Mississippiover whether it can bring its rides to the state:

"Our clients only want a level playing field," said Murphy attorney Jeffrey Rimes. "Without knowing if the bids were received, opened and processed in compliance with Mississippi law and without knowing the details of NAME's (North American Midway Entertainment's) proposal, our client and residents of Mississippi don't know if the Mississippi State Fair contract was awarded to the best bidder. Having the light of day shine upon NAME's proposal and the bidding porcess is what our complaint seeks to accomplish."

And, in the Wild West show shooting, not guilty pleas have been enteredby the park employees:

Two men charged in last summer's shooting of an actor at the Wild West City theme park pleaded not guilty in municipal court yesterday.

Wild West City's owner, Michael Stabile, 58, of Byram, and an employee, Harold McPeak, 52, of Newton, are accused of violat ing a state law intended to protect public health and safety and causing serious injury to Scott Harris. He was shot in the head during a simulated gunfight on July 7. The charge carries a po tential three to five years in prison.

Also, do fireworks cause health problems?  We're skeptical but this articlelooks at the issue.

And, on the business side of things, the Mall of America is apparently close to closing a dealfor Nickelodean characters and content for its indoor amusement park:

Nickelodeon, a cable TV network for children, is in the final stages of negotiating an exclusive branding-rights deal for the Mall of America's indoor amusement park, formerly known as Camp Snoopy, according to report in the Star Tribune.

2.01.07 First February Update...

Here's an interesting articleon safety and risk mitigation strategies for playgrounds.  With many amusement facilities adding playgrounds and similar play structures, the article is definitely worth reading.

And, from a non-legal angle, here's my Large Park Reportfrom the latest issue of Tourist Attractions & Parks magazine.  It previews upcoming attractions for 2007.

Lastly, as you've probably heard, Disney has settledthe recent Mission:Space lawsuit.  Details are generally confidential but it looks as if both parties are paying their own legal costs.  Bill Childs has posted some commentaryon his Tort blog.

1.31.07

As we finish off the first month of '07 (hard to believe, isn't it?), we have an extra large dose of Update for everyone.  So, grab that second cup of breakfast blend and let's get started...

This storyoutlines some of the challenges that amusement facilities with live animal attractions face--in this case an aquarium and a series of protests following several animal deaths:

The confinement/freedom debate has reached the Association of Zoos and Aquariums, a licensing-and-standards agency for animal facilities all over the country. Based in Silver Spring, Md., it has 211 member institutions, including Zoo Atlanta. The Georgia Aquarium, barely a year old, is not a member. Swanagan said it will apply this year.

The AZA has heard arguments from "fringe extremists" against detaining animals, said Steve Feldman, a spokesman for the organization. "We are the animal-care experts," he said. "We care deeply about animals."

When an animal dies at a member zoo or aquarium, the AZA requires the agency to file a detailed report, Feldman said. Since it is not an AZA member, the Georgia Aquarium didn't have to report Ralph's or Gasper's deaths to the agency, he said.

Then there's this interesting storyabout how the North Carolina Supreme Court has ruled that employee's injured during an employer's "Fun Day" at an amusement facility does not qualify for workers comp benefits:

On Friday, a majority of the NC SCT ruled in Frost v. Salter Path Fire & Rescue that an employee injured at her employer's "fun day" was not entitled to workers' compensation benefits because her injury at the fun day did not arise out of her employment.

Plaintiff Frost was a volunteer emergency medical technician--and volunteers have been treated like paid employees for workers' compensation purposes. See, e.g., Hix v. Jenkins, 118 N.C. App. 103, 453 S.E.2d 551 (1995). Frost attended Salter Path's fun day, an employer-sponsored event at an amusement park apparently meant to, inter alia, boost morale and show appreciation for volunteer employees. Crucially to the Court's result, attendance at fun day was voluntary, i.e., not required, and the fun day activities were "authorized merely for [plaintiff's] optional pleasure and recreation while she was off duty."

Ironically, this ruling could end up leading to increased exposure to the facility itself for these injuries as it essentially takes the employer out of the prospective pool of liable defendants.

Finally, this articlediscusses potentially regulatory problems for one aquarium related to a "leaking" problem:

State regulators have issued the equivalent of a warning - and an order to fix problems - to officials at the Downtown Aquarium after discovering the facility was leaking an estimated 3,000 gallons of saltwater per day adjacent to the South Platte River.

The state notification included a new charge: the aquarium also was releasing "filter backwash water" from aquarium tanks into the environment. That water, different from the saltwater leaking from a pipe, was apparently discharged into a wetland next to the aquarium.

1.30.07

Looks like good newsfor Disney in the Epcot copyright case:

Corwin v. Walt Disney Co., No. 04-16554 (11th Cir. January 22, 2007)
Upon sua sponte reconsideration of appeal in a copyright infringement suit involving a painting claimed to be the original concept for EPCOT, prior opinion is vacated. Orders: 1) disposing of several evidentiary issues and granting summary judgment for defendant; 2) denying plaintiff's motion for clarification and reconsideration; and 3) adopting the magistrate judge's award of taxable costs to defendant, are affirmed as to summary judgment and reconsideration. As plaintiff's objection to the district court's costs order was untimely, and as he failed to show excusable neglect for his untimeliness, the district court acted properly in refusing to address the merits of that objection, and the court's costs order is affirmed.

On the business side of things, the popular Motley Fool column has this storyon Great Wolf Lodge indoor waterparks.

1.29.07

This articlediscusses the business and regulatory challenges facing one amusement industry company when it comes to the tightening job market in the U.S.:

Neither the union nor Disney management will reveal publicly, or to each other, the dollar value or other details of their initial bargaining positions until a meeting scheduled for March 6.

Both sides agree that wages, pensions, health care, scheduling and seniority also will be top items for negotiation.

On the outsourcing issue, Disney spokeswoman Kim Prunty said the company had used outside contractors since 1971, but offers displaced employees other jobs at comparable pay.

And this storydiscusses legislation that may result in a large tax break for one prominent amusement facility:

1.26.07

Universal Orlando has a new CFOto go along with its new CEO:

Tracey Stockwell has been appointed Chief Financial Officer for Universal Orlando Resort, the company announced today.

Stockwell has been with Universal for ten years and previously served as vice president of finance. She replaces Mike Short, who left the company earlier this month.

1.25.07

A couple of interesting pieces of news coming out of Six Flags these days. 

First, the park chain is apparently removing one of the major ridesfrom its New Orleans-area park.  Obviously, not a good sign for the possibility of that park opening back up under the Six Flags banner. 

What's also interesting is that the article mentions an exsiting lawsuit between Six Flags and its insurer for the Hurricane Katrina-damaged park.  And, the article hints that the city of New Orleans might be willing to engage in legal efforts to force the Six Flags to re-open the park.  So, basically, for those who follow legal happenings in the industry, the future of Six Flags in New Orleans should be quite interesting to follow:

Wendy Goldberg, a spokeswoman for Six Flags, says no long-term decisions have been made about the park, and her company recently filed suit against its insurers over its Katrina claim.

...

Last year, Six Flags made a settlement offer to the city to permanently close the park and get out of the deal, but Mayor Ray Nagin said he plans to hold Six Flags to its agreement to operate the park.

And, CEO Shapiro's strategy of strategic alliances continues, this time with Nintendo:

Amusement park operator Six Flags Inc. said on Tuesday it had entered into a sponsorship and marketing agreement with Nintendo Co. Ltd. unit Nintendo of America.

Under the agreement, Nintendo's Wii video game system will become the official gaming console of Six Flags parks. Six Flags will also offer complimentary game-playing at Wii gaming stations at select theme parks.

1.23.07

Looks like state regulators in Massachusetts are looking at implementing climbing wall safety regs:

But, with as many as 1,000 climbing walls in community centers, schools, and private gyms around Massachusetts, state public safety officials are alarmed by the potential for accidents, and they will hold a hearing today on a proposal to regulate the walls by requiring owners to get annual licenses and pass regular inspections.

"This is an unregulated industry that in the interest of public safety needs to have some regulation and oversight," said Kelly Nantel, spokeswoman for the Department of Public Safety. "We feel that it's an accident waiting to happen."

Also, this storyregarding a Malaysia amusement park is interesting primarily because of the apparent audacity of the facility owners in response to a government ordered closure:

The Safari Lagoon water theme park in Pandan Perdana was ordered to close down in 2005 but continued operating without the Ampang Jaya Municipal Council taking any action against the operator.

Finally, on the business side of things, the relatively warm winter weather this year (at least outside of those in the Rockies and neighboring plains) has resulted in some positives for the industry as it gears up for the '07 season.  Here'sone example:

The mostly mild winter has been a help for crews putting up the new roller coaster at Cedar Point.

Officials said the steel structure of the Maverick is now built, and what remains is the electrical and underground utilities work and the landscaping around the ride. They expect the $21 million dollar to be ready long before the park opens for the season on May 12.

1.22.07

Bad news from one courtfor the Joyland amusement facility:

Joyland can't allow alcohol, dancing, live music or late-night entertainment, a judge ruled this week.

Following a two-day trial on the permanent injunction, park operator Michael Moodenbaugh can operate Joyland as a traditional amusement park with rides and food. But he must close the park by 11 p.m. on most weekdays and at midnight on Fridays and Saturdays.

A criminal charge filed against Moodenbaugh for violating noise ordinances last fall is still pending.

1.21.07  Weekend Version...

An adult sleepover--on Valentine's Day--at an amusement facility?  Even the least curious of minds can imagine the potential, er, logistical and legal issues that could arise:

The Vancouver Aquarium is inviting people for a sleepover on Feb. 10 if they want to do "something really different" with their Valentine this year.

The pitch: "No kids, no crowds. Just you, a few other couples and 70,000 amazing animals."

Sounds fun.  And, we'd love to read the Waiver and Release that we presume goes with it...

1.19.07 Friday Update...

First off, criminal charges have now been filedin the "Wild West" show shooting:

Three people were charged Wednesday with roles in the shooting of a theme park actor whose fellow actor was not supposed to have live ammunition during a mock gunfight.

The July 7 shooting at the Wild West City theme park is not believed to be intentional, but left the 37-year-old victim, Scott Harris, partly paralyzed and with a bullet in his skull.

The story goes on to report that charges were filed both against the individual park owner, manager, and worker (i.e. the shooter) as well as the corporate entity, too.

Meanwhile, here's a cautionary talefor potential amusement facility developers--especially those who take public subsidies (in this case, a tax credit) in advance of the project:

Developer Jeff Stone canceled his plan to build a huge aquarium at Ko Olina and said he will give back to the state a $75 million tax credit he got for the project but never used.

And, on the business side of things, this moveby Anheuser-Busch parks is a really classy one and, frankly, will surely more than pay for itself by the goodwill that it generates:

Here’s to the Heroes provides a single day’s free admission to any one SeaWorld or Busch Gardens park, Sesame Place, Adventure Island or Water Country USA for the service member and as many as three of his or her direct dependents. 

Any active duty, active reserve, ready reserve service member or National Guardsman is entitled to free admission under the program.  He or she need only register, either online at www.herosalute.comor in the entrance plaza of a participating park, and show a Department of Defense photo ID.  Also included in the offer are members of foreign military forces serving in the coalitions in Iraq or Afghanistan or attached to American units in the U.S. for training. 

Finally, an Update on January 19th just wouldn't be completed without a "Happy 3rd Birthday" to Dawson Kendell Emerson...

1.18.07

King's Island is facing a new federal lawsuitwhich appears to be based on some version of false arrest/false imprisonment:

A $10 million lawsuit has been filed in federal court by a man who said he was falsely arrested on sexual-imposition charges at Paramount's Kings Island amusement park last May.

Keith Bays, 44, has sued the park and several of its police officers. He contends that he was wrongfully arrested and "manhandled" by park police after two women complained about his behavior toward them.

And, on the business side of things, this Motley Fool articleisn't too excited about the prospects for GE's Universal parks:

How is it possible that a company as gargantuan as GE can let a turnstile magnet go stagnant? The regional players are always on the move. Over the past year alone, Six Flags (NYSE: SIX) has sold off some of its underperforming parks, while Cedar Fair (NYSE: FUN) has expanded its empire. If GE isn't willing to commit to keeping its theme parks competitive, and using them as the ideal launching pad for its fledgling NBC Universal businesses, I'd advise them step aside and let a dedicated operator take over. If you're closing your Florida parks at 7 p.m. on a weekend, it seems like you've thrown in the towel already.

1.17.07

We often get asked about amusement and recreation seminars and events.  Well, we just updated the left column of this page with several of the more prominent 2007 events.  If you have more that should be added, please send an email to cemerson@faulkner.edu and we'll check them out.

1.16.07

Bill Childs has posted some commentaryon the Disney/Indiana Jones suit that was recently settled.  A good summary but he doesn't seem concerned that the case will have much affect on the industry.  Definitely worth checking out.

1.15.07

While the vandalism in this storysounds relatively minor, The Update has been told in the past that no vandalism is ever really "minor" as it always represents a security/safety breakdown of some type.  In other words, an act of vandalism should trigger a security review to ensure that it didn't result from a major systematic problem.

1.12.07

Big business news in the industry today as Six Flags announces its saleof several parks for $312 million (though Magic Mountain and Hurricane Harbor aren't included and are said to be set for operating throughout '07)

Sometimes, it's not what you sell but what you don't sell that counts. Six Flags (NYSE: SIX) announced that it's selling four of its amusement parks and three of its outdoor waterparks in a $312 million deal that will help the regional operator pay down its debt. Missing from the shopping list is the iconic Six Flags Magic Mountain and its adjacent waterpark, which the company had initially bundled onto the bidding block last summer.

Here's another articleon the sale.  And, yet another:

Six Flags, which said last June it would seek buyers for some of its parks to raise cash for debt reduction, will sell the parks to PARC 7F-Operations, a Jacksonville, Fla.-based company run by a former Six Flags Over Texasvice president, Michael Jenkins.

PARC, in turn, plans to sell the parks to CNL Income Properties, a Florida real estate investment trust whose holdings include ski resorts and golf courses, but PARC will operate the properties under long-term leases.

The parks included in the sale are Waterworld USA in Concord, Six Flags Darien Lakein Buffalo, N.Y., Six Flags Elitch Gardensin Denver, Frontier Cityand White Water Bayin Oklahoma City, SplashTown in Houston, and Wild Wavesand Enchanted Villagein Seattle. Combined, the seven parks had attendance of 3.6 million in 2006.

The sale is expected to close in March, according to a Six Flags statement.

Meanwhile, Cedar Fair released 2006 company-wide attendance resultstoday:

Amusement park operator Cedar Fair Entertainment Co. said it saw a slight drop in visitors last year.

Attendance was down less than 1 percent at its amusement and water parks, the company said on Wednesday. That does not include five parks that company acquired last year when it bought Paramount Parks Inc.

Combined attendance at all of the parks was 19.3 million people, the company said.

Guests last year spent roughly the same amount as they did in 2005 once inside the gates, Cedar Fair said.

There's been alot of articles on the recent incident where a costumed Tigger character at Disney World appears to have struck a guest.  Well, we've now seen the video and--while contact did occur--the media certainly seems to be exaggerating the incident.  Still though, here's the videofor you to decide...

And, with new passport regulations coming out related to Canadian guests, this storydescribes how one amusement facility is addressing the issue for these Maple Leaf guests...

1.10.07

The first major amusement park is opening in Kansas.  This columndiscusses the current state of safety regulations in Kansas leading up to that opening:

Kansas has no laws setting safety standards for amusement park rides.

Kansas’ lone statute on the subject requires only that amusement ride operators carry at least $1 million in liability insurance. The same law permits, but does not require, the host city and county governments to establish their own safety standards.

“Since this is the first theme park in the state of Kansas, I don’t know if it was on their radar screen,” Park City Administrator Jack Whitson said of the lack of state regulation.

Whitson said that the city did impose ride safety inspections in its construction permit process. He also said that heexpected the City Council later this year to consider more sweeping safety standards.

Also,  if a fight breaks out at your amusement facility, do you have plans in place regarding what your employees can and cannot do when intervening?  This storyexplains why you should.

1.09.07

The AAMA always has a good monthly web update related to regulatory issues facing the amusement machine industry.  Here'sthe one from December that we forgot to post last month.

Also, on the business side of things, this storylooks at growth prospects for the industry in the Orlando area (the site of the 2007 IAAPA Attractions Expo).  An interesting read:

The year 2007 might not be one for splashy new rides and shows at Central Florida theme parks, but analysts expect Walt Disney World, SeaWorld Orlando and Universal Orlando to do well anyway.

The reasons range from currency exchange rates that make Orlando vacations bargains to more people seeming to seek the kind of escapist vacations done best by top-flight theme parks. Additionally, the parks are hoping visitors will still be drawn by recent additions such as SeaWorld's Believe show.

The result should be solid though maybe not impressive growth.

1.08.07

This storyis reporting that regulators have ordered some of the attractions at South Korea's largest amusement park closed because of safety concerns:

Songpa-gu Office in Seoul is to order Lotte World, Seoul's largest amusement park, to close some of its attractions on Monday.

Lotte World has continued to operate some attractions despite an inspection review that discovered safety problems. Those facilities, including a theater which experts said was in danger of collapsing because of cracks in the ceiling, are to be closed from Monday. "We believe that at least five to six facilities have safety problems," the Songpa-gu Office said. The Office said it would Monday notify Lotte World which attractions should be closed.

1.06.07

Disney World suspends employeeafter allegations that employee struck young guest while dressed as a costumed character:

A Disney employee playing the famed cartoon character is under investigation after a New Hampshire family accused him of punching their 14-year-old son during a home-video session at Disney-MGM Studios.

The Orange County Sheriff's Office on Saturday said it took a report from Jerry Monaco Sr. stating that Tigger struck his son Jerry Jr. on the head about 12:30 p.m. Friday.

"He felt that Tigger essentially punched his son and he filed a police report," said Deputy Carlos Padilla, a sheriff's spokesman. "Right now the allegation is that a battery occurred. Of course, we see a little of that [family video] tape, and we see what appears to be a battery. We need to talk to all sides to see exactly what happened."

One of the most curious aspects of this story is that--as the article notes--this is the second incident in recent years where not only were allegations made against a costumed character--but in both cases, the employee was wearing a Tigger costume.  Odd coincidence, we suppose.

1.05.07

This storyreports on a guest's claim that she was sexually assaulted at a Universal Orlando attraction:

The victim claimed she was standing in the express line by herself and asked a man who she believed was a park employee for information about the entrance to the ride. Investigators said the assailant asked the victim to follow him and led her to an emergency exit hallway where she was sexually assaulted.

1.04.07

A settlementin the lawsuit involving Disneyland's Indiana Jones ride:

A settlement was reached in a lawsuit against the Walt Disney Co. by heirs of a woman who alleged that her death in 2000 from a ruptured brain aneurysm was triggered by riding Disneyland's "Indiana Jones Adventure," according to their attorney.

And only two days after The Update featured the subsequent remedial measures ruling in that case as the Most Important legal development in '06...

Then, there's news that this amusement park in Englandis having regulatory problems with government food inspectors:

Food safety issues were raised at 15 of 19 units and a Kentucky Fried Chicken (KFC) branch was singled out as having immediate hygiene risks.

Inspectors from Staffordshire Moorlands District Council made a routine visit to the park in October.

Alton Towers said it took health and safety seriously and action had been taken after the recommendations.

Finally, this storydiscusses the continuing hot topic in the amusement games industry about what is legal and what is not: