Money-losing Vegas sports park closes, buyer sought

Wednesday, Jan. 3, 2001 | 11:28 a.m.

The money-losing All-American SportPark, a $22 million Las Vegas theme park that includes a batting cage and a Go-Kart track with major-league sponsors, announced Tuesday it's closing immediately but could repoen if the property is sold.

Fifty people lost their jobs as a result of the closure.

In a news release, SportPark management said despite a small but loyal following of locals and tourists, the park never became profitable since its October 1998 opening.

The adjacent Callaway Golf Center, which features a lighted nine-hole Par 3 golf course at Sunset Road and Las Vegas Boulevard South, is profitable, however, and will remain open, the company said.

But the rest of the park -- including a batting cage with the facades of several famous baseball stadiums in the outfield, sponsored by Major League Baseball, and a race track, sponsored by NASCAR -- will be closed except for special events and reserved group parties.

The complex also contains a multipurpose facility sponsored by Pepsi Cola that doubles as an events arena and a roller rink, as well as a climbing wall, arcades, an indoor putting course and an eatery.

The park was a popular gathering place for local teens and when it opened and served as a backdrop for high school postgame television broadcasts.

SportPark spokesman Kirk Hartle said a small contingent of employees was kept to manage special events.

"We had to lay off just about everybody," Hartle said. "Some are willing to come back on a contract basis for special events, but with the discontinuation of day-to-day activities, we had to let them go."

The company had reduced hours and staffing late last year as a cost-cutting measure.

The SportPark, owned by All-American SportPark Inc., under the leadership of Chief Executive Officer Ron Boreta, has been a money loser since Day 1 after a total investment of more than $22 million. Through its history, the company refinanced debt and received infusions of cash from Sports Entertainment Enterprises Inc., which is controlled by Boreta's father, Voss.

Sports Entertainment Enterprises Inc. owns 63.5 percent of the outstanding common stock and one-third of the outstanding convertible preferred stock of All-American SportPark Inc. Voss Boreta's company also owns a golf retail store at Rainbow Boulevard and Sahara Avenue in Las Vegas.

In November, All-American SportPark Inc. announced plans to sell the theme park and turn its management over to experienced park operators, who were considering a water park component there. In Tuesday's release, the company said it is in "active talks" with four possible buyers. The company did not disclose the names of the prospective buyers.

But it did say the new owners could reopen the park within three months.

"Management of AASP anticipates that closing the sale of the SportPark within the next 90 days would enable the new owner to reopen the SportPark by April 2001," the release says.

Meanwhile, the company plans to expand the 42-acre golf course, which was acquired from Carlsbad, Calif.-based Callaway Golf Co. in December 1998.

The golf facility includes the Divine Nine golf course, a 110-station driving range, the David Leadbetter Golf Academy, the Bistro 10 Restaurant and the Saint Andrews Golf Shop.

"Management plans to expand the business, which is now more feasible absent the drain on management and cash resources employed to support losses at the SportPark, which is now closed," the company said.

Last week, the company announced it has appealed a decision by the Nasdaq Listing Qualifications Panel over the delisting of the company's stock. The panel sought to delist the stock from the Nasdaq index for falling below the minimum $1 price.

The appeal automatically stays the decision and a hearing is expected on the matter within weeks.

The stock was trading today at 19 cents, unchanged from Tuesday's close.