Florida Seminole Indian Tribe Closes Deal With Hard Rock

The South Florida Seminole Indian Tribe, who made news a couple months ago with the announcement of a deal to buy out the super company Hard Rock from The Rank Group PlC, has today announced the completion of that deal.

Jim Allen, CEO of Seminole Gaming, said the deal with UK-based Rank Group for Hard Rock International was composed of a $525 million bond offering and a $500 million equity contribution, less $60 million for closing costs and working capital, according to a report by the AP.

More than 200 tribe members attended a colorful signing ceremony, which featured music, a poetry reading and speeches by Seminole council members in English and Miccosukee, a Seminole language. Then, tribal leaders gathered under the Council Oak tree to sign documents symbolizing the sale's completion.

"The acquisition of the Rank-Hard Rock system today makes our economic survival a little bit more sure," tribe vice chairman Moses Osceola said. "We are bound and determined to make this thing work."

The deal's completion is celebration for Indian tribes through the country as it marks the first time an Indian tribe will be entering the hospitality industry in any major way.

The tribe has about 3,300 members and owns and operates seven casinos in Florida, including Hard Rock Hotel and Casinos in Tampa and Hollywood. Before it entered the cigarette and gambling business, the tribe was mired in poverty. Today, more than 90 percent of the tribe's budget is made up of gaming revenue, which stands at about $500 million, according to court records cited by the South Florida Sun-Sentinel.

Each tribal member receives a monthly dividend from operations. Revenue generated by the tribe's businesses goes into education, health care and other services.



2007-03-06