Leland Wykoff

More about generic terms and trademark issues: http://www.knoxnews.com/news/2013/aug/13/scripps-networks-loses-domain-name-battle----again/ An interesting read, particularly concerning the DIY argument.

Knott's Soak City in Palm Springs has been acquired by CNL Lifestyle Properties and will be operated by Premier Attractions Management LLC a unit affiliated with former Six Flags CEO Kieran Burke. See the press release here: http://www.prweb.com/releases/2013/8/prweb11023510.htm

Carrowinds was unable to open until 3:00 pm on one of the busiest days for the park due to a power outage. The Friday, July 5th, delay shaved five operating hours off the day. Carrowinds offered twilight pricing for the remainder of the day and extended operations by one hour. http://www.charlotteobserver.com/2013/07/05/4148897/carowinds-loses-power-after-tree.html

rcwizard13 makes in interesting observation: "I thought frostie was a term for an ice cream drink, not something that is Wendy's and only Wendy's." If it can be shown enough people share this perception and belief Wendy's may well be found to have lost the trademark. As property, a trademark must be actively protected, least it fall into common usage, and become the generic term for a class of products or services. Examples of trademarks which were lost due to a failure to protect the mark from generic usage includes aspirin, escalator, and cellophane. Once these terms became associated as the only descriptive form for a class of goods the mark was lost. Contemporary products which have developed, and promoted, generic names for product classes to assist in the label product mark being applied only in association with a specific product include Xerox promoting photo copy to describe other than Xerox copies. Saran Wrap has promoted the generic term plastic film to describe, and thus distinguish itself from, other similar products. Jell-O also fights this battle by promoting the generic term gelatin. Band-Aid brand adhesive bandages applies pressure to avoid the ouch of having its trademark ripped away scab and all. If Wendy's has been deficient, negligent, or unsuccessful in promoting a generic term such as dairy dessert to alternatively describe the broader class of ice cream style foods, such as a Frostie falls into, they may have already lost the battle. Ask the former owner of Aspirin about that headache.

Supreme Court position on binding arbitration clauses may give pause and concern to Cedar Fair: http://www.reuters.com/article/2013/06/21/us-arbitration-consumers-idUSBRE95K0TU20130621

Examples of trade dress and mark infringement: http://en.wikipedia.org/wiki/Trade_dress File it under "food for thought."

Refresher course on these events: Off to the Ohio Supreme Court races. Some confusion exists within the story. To clarify the Sandusky Register story, the original ruling of the Binding Arbitration Panel included the back to work order for Jack. Cedar Fair appealed that finding, arguing it was beyond the authority of the arbitration panel to issue back to work orders (among other issues). The order Cedar Fair now attempts to overturn in the Ohio Supreme Court is the considered ruling of the appellate judge finding the back to work order proper, and affirming the Jack-back-to-work arbitration panel ruling. Binding Arbitration tends to mean just that. Binding. Lacking a fraudulent finding, gross and grievous error, or a serious misapplication of the law by the Arbitration Panel one wonders what is left to appeal. Perhaps this is an attempt to bring the parties once again to the bargaining table and attempt a monetary settlement.

Cedar Fair appeals ruling: http://digital.olivesoftware.com/Olive/ODE/SanduskyRegister/LandingPage/LandingPage.aspx?href=U0RTS1kvMjAxMy8wNS8zMA..&pageno=MQ..&entity=QXIwMDEwMA..&view=ZW50aXR5

The Island at Pigeon Forge developers have put in a miniature "big" wheel: http://www.knoxnews.com/news/2013/mar/27/greg-johnson-on-second-thought-giant-pigeon-be/ Continuing the trend of the Knoxville Worlds Fair when they built the SunSphere "Tower" not on a ridge line, but down in a hole: The Island Wheel is located down in a hole on the valley floor. Just three blocks away the view from the Cal Ripken Baseball experience, under development, is higher and more impressive. Save your money and drive up to the baseball facility for a stunning view, free, while in Pigeon Forge.

From the First Quarter Conference Call, quoting CEO Matt Ouimet: "Lastly, before I turn the call over to Brian, on behalf of the board of directors, I would like to thank Dick Kinzel for his years of service both as management and as a board member. Dick will retire from the board this June. In anticipation of Dick’s retirement, the board conducted a comprehensive national search and is recommended that the unit-holders elect Scott Olivet, the Chief Executive Officer of Renegade brands, to fill Dick’s seat. Mr. Olivet previously served as the Chief Executive Officer of Oakley and is a former partner of Bain & Company and brings additional public company experience to our board." http://seekingalpha.com/article/1415391-cedar-fair-s-ceo-discusses-q1-2013-results-earnings-call-transcript?page=1

Appears one of the cross promotions with Coca-Cola being the official Refreshment Beverage of Cedar Fair is an offer a one day admission ticket to any US Cedar Fair Park. The My Coke Rewards offer is open for only one day--today--Wednesday, May 1st. The ticket must be used by September 2nd. Redeem 250 points for ticket. Normally 750 points to earn CF Ticket: http://www.myCokerewards.com/rewards/one-single-day-admission-to-any-cedar-fair-park-wednesday-deal/26527?WT.ac=MCR+ADMIN_3_dailyDeal+050113_1_1_h

Mr. Kinzel's board tenure shall soon end.

Finally the flat media stumbled across the Falfas story. The Morning Journal reports Jack "is ready, willing and able to return to work." http://morningjournal.com/articles/2013/04/26/news/doc5179f5fd5daf1612661309.txt

The saga of the departure of Jack Falfas as the COO of Cedar Fair continues. The Court of Appeals for the sixth district has reversed the lower courts order and ordered Jack Falfas back to work. The Court reaffirmed the award and order of the binding arbitration panel which ordered Falfas reinstated to his Cedar Fair position. The Appeals Court also remanded to trial court the duty of setting the issue of the exact economic loss of wages, insurance, legal costs, reasonable costs, etc., suffered by Mr. Falfas as a result of his inappropriate termination. That action will then establish the damages which Cedar Fair must pay Mr. Falfas: http://www.supremecourt.ohio.gov/rod/docs/pdf/6/2013/2013-ohio-1590.pdf Be looking for Cedar Fair to attempt to settle this dispute with Mr. Falfas, perhaps by offering a substantial cash settlement (in lieu of Mr. Falfas returning to work as COO).

The folks over at micechat.com have an excellent photo essay and article about the renewal and renovation of Knott's Berry Farms classic log ride and new family attraction rides. Worth the look: http://micechat.com/26946-knotts-berry-farm-preview/ These improvements speak to (pardon the pun) worlds of difference CEO Matt Ouimet brings to the table with his creative team. The feel and look are much more theme oriented and indicative of a holistic design philosophy.

More news on the sale in small lots: http://www.auroraadvocate.com/news%20local/2013/04/17/geauga-lake-land-in-aurora-bainbridge-to-be-sold-in-smaller-portions Awareness city and township are not happy about property not being put to "highest and best use" by being broken up into small pieces.

The recent pod cast featuring Matt Ouimet was very interesting. He reports bringing in hotel design folks from Disney days to assist in the "refreshment" of FUN lodging properties. Talked of concepts such as dueling piano lounges/lobbies. His discussions concerning dark rides and design limitations due to a lack of intellectual properties (IP) was insightful. To call Cedar Fair an "Entertainment Company" seems disingenuous to me. Lacking the IP component they really are more a collection of amusement parks. The ability to fully monetize theme parks and resorts is hobbled without IP content. Ownership of IP is critical to profitability leverage and capture long term profits from those assets. It will be interesting to see what else Mr. Ouimet has up his sleeves in the coming couple of years. With refinancing of debt, and the much lower annual interest expenses, I suspect Mr. Ouimet is readying to make an acquisition of one sort or another. Possibly pick up a park or attraction franchise they can locate near parks to gain a second admission. Look at Cedar Fair moving from the old guard view wherein lodging was simply warehousing guests, to the new guard action of lodging and hospitality adding value (and revenues!) to the Best Day Experience on Park. IP will increasingly play a larger role in the future Cedar Fair. Increase the offering, refine the product, and price accordingly. Theme is the meme.

Disney should be required to pay $4,000.00 each time anyone has to listen to "It's A Small World."

Finz has posted a podcast explaining the ruling in the California's Great America bumper car case. This case helps define the primary assumption of risk doctrine. Finz pod cast sums it up quite nicely: http://finzblog.com/2013/03/nalwa-v-cedar-fair-l-p/ Listen and enjoy!

Interesting article exploring the risks brought on by failure of Pigeon Forge Planning Department to adequately regulate cabin style developments, examples of which can be seen adjacent to, and above, Dollywood: http://www.knoxnews.com/news/2013/mar/19/sevier-county-regulations-bounty-of-cabins-long/ For an interesting video and photos of Dollywood cabin options see: http://www.dollywood.com/PigeonForge/cabin-rentals.aspx They might want to consider removing the burning log and spa candle images from the promotions. Or not.

Cedar Fair on February 25, 2013, included an impairment of assets area in its 10-K Form. That impairment was for $25 million on both the Whitewater Kingdom and adjacent non-operating Whitewater Kingdom (read Geauga Lake parcels). From the filing: At the end of the third quarter of 2012, the Partnership concluded based on 2012 operating results through the third quarter and updated forecasts, that a review of the carrying value of operating long-lived assets at Wildwater Kingdom was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets were impaired. Also, at the end of the third quarter of 2012, the Partnership concluded that market conditions had changed on the adjacent non-operating land of Wildwater Kingdom. After performing its review of the updated market value of the land, the Partnership determined the land was impaired. The Partnership recognized a total of $25.0 million of fixed-asset impairment for operating and non-operating assets during the third quarter of 2012. This helps explain why the prices are so low on the properties. Cedar Fair has taken a write down on the carrying costs of the assets. Now they are recognizing the value of the properties more in line with current market conditions. This could be taken as a sign CEO Matt Ouimet is ready to divest the surplus Geauga Lake property, eliminate criticism over the eye-sore of an abandon park, and focus management attention on productive assets and new business. Link to the complete 10-K filing here: http://biz.yahoo.com/e/130225/fun10-k.html

Cedar Fair announces pricing of new debt. Interest rate will fall to 5.25% and term extended until 2021. Substantial saving will result from the refinancing of a significant part of Cedar Fair's debt. Read more here: http://www.newson6.com/story/21429394/cedar-fair-announces-pricing-of-500-million-senior-unsecured-notes

Just in case you missed this update: Blackstone reports SeaWorld IPO more likely than sale to Apollo or other entities: http://www.bloomberg.com/news/2013-02-20/blackstone-said-to-favor-seaworld-ipo-as-it-weighs-takeover-bids.html

Blackstone reports SeaWorld IPO more likely than sale to Apollo or other entities: http://www.bloomberg.com/news/2013-02-20/blackstone-said-to-favor-seaworld-ipo-as-it-weighs-takeover-bids.html

Cedar Fair's refinance of $1.13 billion planned. Falling just one day after the fourth quarter conference call in which CFO Brian Witherow reaffirmed FUN's continual monitoring of credit markets in an attempt to extend terms, lower borrowing costs, and seek more advantageous loan covenants, the refinance would cover a term loan currently due in 2017. Cedar Fair would still be holding the high interest rate bonds referenced in yesterdays conference call. That bond debt has restrictions limiting the right to call to August of 2014. Bloomberg pegs Cedar Fair debt at $1.5 billion, including $405 million in bonds maturing in 2018. More details: http://www.bloomberg.com/news/2013-02-20/cedar-fair-seeks-to-refinance-1-13-billion-loan-to-lower-cost.html?cmpid=yhoo