Steve Wynn Says He Hasn’t Made a Deal with Garth Brooks (Or Anyone Else, For That Matter)

It’s been about five weeks since Garth Brooks’ last private concert at Encore at Wynn Las Vegas. Since then, there has been a resounding lack of information about any possible deal between Brooks and Wynn for a Garth Brooks show at the empty Encore Theatre.

Today we finally got a little snippet of news. During a conference call this morning regarding Wynn Resorts’ second quarter earnings, Steve Wynn was asked about plans for the Encore Theatre. Steve Wynn replied with a broad statement that the entertainment at Encore is a “work in progress.” He also said they will “use the showroom intelligently.” (I must say that the accountant in me interprets this phrase as “we will not lose money on it.”) Steve Wynn said “There are a number of people we’re talking to.” It should be noted that Beyonce opens a four-night engagement tonight at the Encore Theatre, but Wynn described her appearance as a “special event” and not an ongoing one.

Garth Brooks recently performed two separate private shows at the Encore Theatre, to “try out the room” as Garth explained in the first show on June 8th. The concerts were well received by both audiences and rumors have circulated that a deal is being discussed but that there is a holdup over the ticket prices. There was no dispute over the cost of tickets for the two private shows, however: they were free to invited guests. Regarding these shows, Steve Wynn noted on the conference call that “Garth Brooks was here as a friend – he didn’t charge” for the performances.

Steve Wynn and Garth Brooks first met in May, but by all accounts, hit it off and became friends. They speak very highly of each other in public. This morning on the conference call, Steve Wynn called Garth an “extraordinary fellow, really extraordinary.” It turns out that Garth and his wife, Trisha Yearwood, and their three daughters, are accompanying Steve Wynn to Beyonce’s performance tonight at Encore. (Wonder if Garth’s getting to fly out to Las Vegas on the Wynn corporate jet again….)

So, the big Garth-related news from this morning’s conference call came when Steve Wynn announced “we haven’t made the deal, so we keep our cards close to our vest.” Steve Wynn closed out the Encore entertainment discussion by saying that they prefer to talk about deals they’ve made as opposed to deals they haven’t made.

Here’s what I take out of all of this. Wynn says they’re talking to a number of people, but in reality they would do that even if they are in active negotiations with Garth Brooks; Wynn has to have other alternatives if Garth ultimately says no. As savvy as Wynn's statement may be, it does nothing to suggest that they are not pursuing Garth as their #1 choice for the showroom.

Secondly, Steve Wynn and Garth Brooks are obviously on good terms. Out of all the well-connected people in the world, and I suspect Steve Wynn knows many of them, it is Garth and his family that have been invited to join Wynn tonight for Beyonce’s opening-night show.

Perhaps Garth Brooks wants to “try out the room” from the audience’s perspective. Perhaps Wynn just wants to keep the dance going and apply a little more pressure to an ambivalent Garth (remember, it was Garth who said at the second private show that he didn’t know if Steve Wynn was trying to “make his life better or worse”).

Whatever the reason, they’re still talking to each other. I think the negotiations are still underway and perhaps a deal is still possible. So while Garth indeed returns to Encore tonight, alas, it is just to see the lovely Beyonce perform.

If you’re willing to register your name and email address with Wynn’s Investor Relations department, you can listen to the recorded conference call. Click here for the link. The relevant piece about Encore’s entertainment starts after the 46-minute mark, in response to a question by analyst Bill Lerner from Union Gaming Group.