The private equity ownership is the problem. Hill Path Capital owns 49.7% of the company, creating significant influence and putting greater focus on share buybacks and driving value.
The ownership structure of private equity means that any losses from this lawsuit will go against United Parks, not against Hill Path Capital. At least I think that's how it works, but unlike the other cases I've heard about, this isn't a leveraged buyout. Still, the priority is financial gain for Hill Path, not for United Parks. Customers don't matter. Employees don't matter. Only the shareholders matter.
If the parks go downhill (and they will), possibly even bankrupt, Hill Path Capital may just sell off the remains while keeping the profits they made from stripping apart the parks. Private Equity has a large (and incomplete) list of bankruptcies on Wikipedia, and I wonder if United Parks could eventually join it.
This actually looks like something being added rather than removed. I suspect they might be balancing out both sides of the facade. There's something up with that circled area that doesn't make much sense with what we've been seeing.
As asinine as it may be, there may be an ROI on theme park trash cans, outside of adding to the park experience…
Read More About Disney Trash Cans, I Guess