Carnival Cruise Lines Micky Arison, CEO. After Carnival rips off the City of Mobile, we take a closer look at the company. Mobile, Alabama
Carnival Cruise Lines has shafted the City of Mobile for
$20 million. After enticing the city to spend over $20 million for a
cruise ship terminal facility, Carnival left town without even the good
manners of a courtesy notice. It was a Wham bam, thank you mam
without the thank you.
Carnival Corporation and PLC (its sister corporation) comprise eleven individual cruise
line brands, operating a combined fleet of 96 ships. Brands include
Carnival, Cunard, Holland America, Princess, Seabourn and four others.
Carnival Corporation was initially formed in 1972. After achieving
its position as one of the worlds most popular cruise lines, the
company made an initial public offering of 20% of its common stock in
1987. This provided an influx of capital that allowed the company to
begin its expansion through acquisitions. In 1989 its first acquisition
was the premium operator Holland America Line. Others quickly followed.
The CEO and owner of controlling interest in Carnival is Micky Arison,
son of the founder. Arison was born in Israel of Romanian ancestry and
now lives in Miami as an American citizen. Forbes lists him as one of
the worlds wealthiest individuals. His compensation from Carnival in
2009 was over $7 million.
In 1988, Carnival Cruise Lines expanded into airlines with the
purchase of Pacific Interstate Airlines, which was subsequently renamed Carnival Air Lines. This venture ended ten years later in bankruptcy court with creditors holding the bag.
Hey Mobile, sound familiar?
Carnival owner, Micky Arison, also owns the professional basketball team, Miami Heat.
Miami area governments built Arison a $250 million dollar waterfront
stadium 10 years ago in exchange for a rental agreement. Now 10 years
into the rental contract, Miami has received no rent from the Heat or
Arison, according to a columnist for the Miami New Times.
Sound familiar?
I guess Mobile should be thankful we were taken for only $20 million rather than Miamis $250 million.
3 Updates & Rebuttals
Flynrider
Phoenix,Arizona,
USA
Crafty politicians.
#4Consumer Comment
Wed, May 18, 2011
". After enticing the city to spend over $20 million for a
cruise ship terminal facility, Carnival left town without even the good
manners of a courtesy notice."
So, in exchange for building this facility, the city did not get any contractual obligation requiring Carnival to operate in Mobile for a given period of time? Doesn't that sound kind of stupid (it's not really. Stupidity is just a cover)? I think your anger is directed at the wrong party.
If you really want to find the culprit, follow the money. Find out which politicians benefitted by building this facility with no guarantee that it would be used. My guess is that Carnival knew full well that they might not stay long term, which would explain their not signing a long term agreement. On the other hand, the locals who would benefit from the $20 million expenditure wouldn't have made jack if such a deal had required the commitment.
This is local politics 101 and is usually the explanation for glaring oversights such as these (as opposed to just plain stupidity).
Michael
Summerland Key,Florida,
U.S.A.
So, what's your beef?
#4General Comment
Tue, May 17, 2011
Are you a representative of Mobile, or are you just some Joe Schmoe who is just upset you don't have a local cruise embarkation port anymore? If a rep of Mobile, you only have yourself to blame. You failed to sell your city to tourists, therefore letting down Carnival who was homeporting there. If you are the latter, you need to understand the workings of economics and understand why Carnival left. They weren't selling cruises. That's the bottom line.
Cory
San Antonio,Texas,
U.S.A.
So, What Else Is New?
#4Consumer Comment
Sat, May 14, 2011
I see that same crap happening to cities all over the country. These scumbag politicians GIVE these sweetheart deals to companies who agree to set up shop in their little bergs. Here in town it was AT&T and Sony just to name of few of the many. Some companies stay as long as their tax "breaks" last, then it's on to the next town. Some bail out as soon as they find it's not profitable, even before their tax "breaks" end. Many cities won't go after money that companies that DO bail owe, in fear of scaring off future business. How about THE BIGGEST of all? Jerry Jones and his billon dollar stadium. Didn't cost him a penny yet he gets to keep all the profit. Can't blame a business man. Those politicians are the ones who GIVE IT away. The big rip off right now here in town is the appraise value of commercial properties. Before, IF a company contests an appraised value and they LOST their appeal they had to PAY ALL legal fees. Now if they lose the appraisal district can only collect $100,000 max. for legal fees. We're talking big bucks here. JW Marriot spent $200 MILLON building their hotel here. THEY say it's WORTH $50 million. The appraisal district says $150 millon. Of couse JW's gonna spend millons contesting the appraised value. IF they lose, the most the appraisal district can collect in THEIR legal fees IS $100,000. You can thank a politician that has his nose buries up the butt of business for that new law.