Mohegan Sun Looks Forward to Cutting Ties With Original Partner
The Mohegans will kick off 2015 independent of its original partner, Trading Cove Associates, which lead the development, building, marketing, and in the beginning, operations of Mohegan Sun.
The parties will relinquish their contract on New Years Day 2015 after buying out Trading Cove's exclusive rights, which were agreed upon before the Uncasville, Connecticut-based casino was even built. The tribe will continue to pay Trading Cove 5 percent of the casino's gross revenues until 2030.
By January of next year, the Mohegans will have paid Trading Cove more than $900 million not to manage the casino, reported TheDay.com. In 1999, the tribe opted to pay the company a percentage of revenues rather than let Trading Cove's original seven-year management contract run out in 2003.
Roland Harris was the council chairman when the relinquishment agreement was forged and signed in 1999. "I'd call them a cost of self-determination," Harris said of the relinquishment payments over the past 15 years.
"Our relationship with the Mohegan Tribe began with a handshake with Chief Ralph Sturges in 1992," Len Wolman, a Trading Cove managing partner, said. "It has been our privilege to partner with the tribe for many years, to assist them in their quest for federal recognition, in developing and operating Mohegan Sun, in developing the second phase of the project and, ultimately, assisting the tribe to achieve their goal of independence."
Trading Cove has partnered with the Stockbridge Munsee Band of Mohicans to propose a commercial casino in Thompson, Sullivan County. The pair will compete with the Mohegans and developer Louis Cappelli for a casino license in Sullivan County. Mohegan Sun hopes to develop a casino on the site of the former Concord Hotel.
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