Broomfield, Colorado — Vail Resorts is in the midst of a proxy battle, which could dramatically impact its future. The ski resort conglomerate has been making its case for rejecting the nominees to its board, which they believe to be tied to Matthew Prince’s push to buy Park City Mountain Resort
In its latest filing on October 30th, Vail Resorts called on shareholders to reject all nominees put forward by Oasis Management and vote in its own board members instead. They cited a lack of ski-industry management experience among some nominees, the drama surrounding nominee Bob Chapek’s exit from Disney, and their affiliation with Matthew Prince, who is eager to buy Park City Mountain Resort.
Their core argument is this: since Rob Katz became CEO again last year, the company has announced various initiatives to get back on track, which they claim is showing signs of success despite last winter’s dreariness. They argue that nominating outsiders would disrupt that progress.
This sharp criticism has resulted in a pivot by Oasis Management. In its latest filing, it dropped two of its nominees (Picabo Street and Bryce Roberts) because of their alleged ties to Prince. They also reiterated their intention to maintain Vail Resorts’ existing owned/operate mountain network.
Matthew Prince Gets Roasted
While his name isn’t directly involved with Oasis Management’s board push, Vail Resorts has made it clear that they believe that Prince is directly involved in this proxy fight.
The evidence they used to show he’s part of this came from an Oasis filing in the proxy fight. That same day, Prince went on a ski industry podcast (The Storm Skiing Journal & Podcast) to make his case for buying Park City Mountain Resort.
I’m kinda surprised they didn’t mention the time when the proxy push was announced, when Prince used a GIF of “I love when a plan comes together” from The A-Team. Real discreet.
Vail Resorts argues that Park City Mountain Resort is essential to their future plans, as a sale would disrupt their strategy. Prince has argued that a sale to him, and then still offering days on the Epic Pass, would be a better model for the ski resort.
Bob Chapek’s Past Gets Highlighted
Former Disney CEO Bob Chapek recently returned to the spotlight not only because of his nomination to the board, but also because of an autobiography detailing his life and beef with fellow former Disney CEO Bob Iger.
Vail cited two main issues with Bob’s nomination. First, Bob met with Rob Katz to discuss the company and reportedly said he had no intention of joining a proxy fight against it. Second, Vail Resorts expressed concern about Bob’s dramatic exit from Disney, which he covered in his new book.
Ultimately, we won’t know much about the result until December 14th. However, the largest shareholder, Rob Baron of Baron Capital, fully supports the current board. Baron Capital holds about an 18% stake in the company, while Oasis holds about 9.6%.
Here is their statement regarding the proxy fight:
“Baron Capital will vote for Vail Resorts’ nominees. Under the proven leadership of CEO Rob Katz, I believe that Vail Resorts has the right strategy to return to sustainable earnings growth and that there are meaningful opportunities that are not reflected in the stock today. This includes capturing more revenue through enhanced rental equipment and ski school offerings, and increasing engagement through continued investment in technology, mountain infrastructure, and the guest experience.
I do not believe the Oasis nominees would serve the best long-term interests of investors and strongly oppose their candidacies. I also have serious concerns about Oasis’ coordination with Matthew Prince. I believe Prince’s self-interested demand that the Company sell him Park City, one of its most iconic mountains, is short-sighted and destructive to long-term shareholder value. That alone taints my view of anyone Oasis recommends for the Board, including Bob Chapek. Vail Resorts’ opportunity is in using the full power of its network of irreplaceable resorts, not dismantling it.”
Image/Video Credits: John Price, The Storm Skiing Journal & Podcast, Vail Resorts
