Seminole Tribe Purchases Transnational Corporation

HOLLYWOOD, Fla. (AP) - The Seminole Tribe of Florida completed its $965 million purchase of the Hard Rock cafes, hotels, casinos and music memorabilia from The Rank Group PLC on Monday through a combination of a bond offering and an equity contribution from the tribe.

Jim Allen, CEO of Seminole Gaming, said the deal with UK-based Rank Group for Hard Rock International was composed of a $525 million bond offering and a $500 million equity contribution. The additional $35 million was for closing costs and working capital, Allen said.

The deal was completed after details were worked out in London, New York and Florida. It marks the tribe's entry in the worldwide hospitality industry and gives the tribe's gaming operations a foothold in states where gambling is legal. The purchase was first announced in December and approved by Rank Group shareholders in January.

To celebrate the deal, more than 200 tribe members attended a colorful signing ceremony, which featured music, a poetry reading and speeches by Seminole council members in English and Miccosukee, a Seminole language. Then, tribal leaders gathered under the Council Oak tree to sign documents symbolizing the sale's completion.

"The acquisition of the Rank-Hard Rock system today makes our economic survival a little bit more sure," tribe vice chairman Moses Osceola said, with black, red and yellow flags serving as a backdrop. "We are bound and determined to make this thing work."

The Hard Rock business includes 124 Hard Rock Cafes, five Hard Rock Hotels, two Hard Rock Casino Hotels, two Hard Rock Live! concert venues and stakes in three unbranded hotels. It also features a collection of rock 'n' roll memorabilia that includes 70,000 pieces, including guitars owned by Jimi Hendrix and Eric Clapton.

The Seminoles were the first Native American tribe to get into the gambling business, and it says the deal is an American tribe's first purchase of a major international corporation.

"The Seminole Tribe has paved the way for Native Americans to get into the big business industry," tribe chairman Mitchell Cypress said.

The tribe has about 3,300 members and owns and operates seven casinos in Florida, including Hard Rock Hotel and Casinos in Tampa and Hollywood. Before it entered the cigarette and gambling business, the tribe was mired in poverty. Today, more than 90 percent of the tribe's budget is made up of gaming revenue, which stands at about $500 million, according to court records cited by the South Florida Sun-Sentinel.

Each tribal member receives a monthly dividend from operations. Revenue generated by the tribe's businesses goes into education, health care and other services.

"It was a good effort by the council to position the tribe for the 21st century in a business sense," said tribe member Joe Frank, who lives on the Big Cypress reservation. "Tribal membership is growing and we need to diversify our business assets to ensure that all our tribal members have a good future."

The tribe already has plans to expand the business, with the number of Hard Rock hotels to grow to 15 in the next three to four years, Allen said. This year, Hard Rock plans to finish reconstruction of a hotel and casino in Biloxi, Miss., that was damaged by Hurricane Katrina. It also plans to open a hotel in San Diego, begin development of a hotel and casino in Macau and start building condo-hotel properties at the Copper Mountain Resort in Colorado and in Palm Springs, Calif.

Monday's deal does not include Hard Rock's Las Vegas casino, which is owned by Morgans Hotel Group, or Morgans' rights to Hard Rock intellectual property in Australia, Brazil, Israel, Venezuela and many areas of the United States west of the Mississippi River.

Rank has said the sale freed the company to concentrate on gambling. It retained the Hard Rock Casino in London and plans to change it to the Rank Gaming brand.

In a Rank Group earnings report filed Friday, Hard Rock International reported operating profits increased 18.7 percent to $74.8 million, from $63 million the year before. It saw continued growth and improvement in all four business divisions comprising company-owned cafes, franchise cafes, hotels and casinos, a news release said.

Cherokee Nation News Release

Cherokee Nation Special Election Results

March 3, 2007

See: Cherokee Nation: official site

TAHLEQUAH, Okla. – A Cherokee Nation Constitutional amendment restricting membership to descendants of Indians listed by blood on the Dawes Rolls has passed.

Cherokee voters overwhelmingly approved an amendment to the Cherokee Nation Constitution in a special election Saturday, March 3, by a decisive vote of 6,693 (77%) for the measure to 2,040 (23%) against. The amendment limits citizenship in the Cherokee Nation to descendants of people who are listed on the Final Rolls of the Cherokee Nation as Cherokee, Delaware or Shawnee and excludes descendants of those listed on Intermarried White and Freedmen rolls taken at the same time.

“The Cherokee people exercised the most basic democratic right, the right to vote,” said Chad Smith, Principal Chief of the Cherokee Nation. “Their voice is clear as to who should be citizens of the Cherokee Nation. No one else has the right to make that determination. It was a right of self-government, affirmed in 23 treaties with Great Britain and the United States and paid dearly with 4,000 lives on the Trail of Tears.”

Smith added that the number of voters who turned out to vote on the constitutional amendment was actually more than the approximately 6,700 who approved the Cherokee Nation Constitution four years ago.

“This was an unexpectedly high turnout, considering it was a special election with nothing else on the ballot,” Smith said. “I think that reflects the idea that this is an issue that has been close to the heart of the Cherokee people and an issue they have thought about carefully before voting.”

The special election was brought about by a petition of registered Cherokee voters, and was an historic event for the Cherokee Nation, as its first ever stand-alone election to vote on a Constitutional amendment.

Election results are unofficial until certified by the Cherokee Nation Election Commission, but percentages are not expected to change significantly.

Cherokee Nation Revokes Citizenship of Freedmen

OKLAHOMA CITY (AP) - The Cherokee Nation vote this weekend to revoke the citizenship of the descendants of people the Cherokee once owned as slaves was a blow to people who have relied on tribal benefits.

Charlene White, a descendant of freed Cherokee slaves who were adopted into the tribe in 1866 under a treaty with the U.S. government, wondered Sunday where she would now go for the glaucoma treatment she has received at a tribal hospital in Stilwell.

"I've got to go back to the doctor, but I don't know if I can go back to the clinic or if they're going to oust me right now," said White, 56, a disabled Tahlequah resident who lives on a fixed income.

In Saturday's special election, more than 76 percent of voters decided to amend the Cherokee Nation's constitution to remove the estimated 2,800 freedmen descendants from the tribal rolls, according to results posted Sunday on the tribe's Web site.

Marilyn Vann, president of the Descendants of Freedmen of the Five Civilized Tribes, said the election results undoubtedly will be challenged.

"We will pursue the legal remedies that are available to us to stop people from not only losing their voting rights, but to receiving medical care and other services to which they are entitled under law," Vann said Sunday.

"This is a fight for justice to stop these crimes against humanity."

Cherokee Nation spokesman Mike Miller said Sunday that election results will not be finalized until after a protest period that extends through March 12. Services currently being received by freedmen descendants will not immediately be suspended, he said.

"There isn't going to be some sort of sudden stop of a service that's ongoing," Miller said. "There will be some sort of transition period so that people understand what's going on."

In a statement late Saturday, Cherokee Nation Principal Chief Chad Smith said he was pleased with the turnout and election result.

"Their voice is clear as to who should be citizens of the Cherokee Nation," Smith said. "No one else has the right to make that determination. It was a right of self-government, affirmed in 23 treaties with Great Britain and the United States and paid dearly with 4,000 lives on the Trail of Tears."

The petition drive for the ballot measure followed a March 2006 ruling by the Cherokee Nation Supreme Court that said an 1866 treaty assured freedmen descendants of tribal citizenship.

A similar situation occurred in 2000 when the Seminole Nation voted to cast freedmen descendants out of its tribe, said attorney Jon Velie of Norman, an expert on Indian law who has represented freedmen descendants in previous cases.

"The United States, when posed the same situation with the Seminoles, would not recognize the election and they ultimately cut off most federal programs to the Seminoles," Velie said. "They also determined the Seminoles, without this relationship with the government, were not authorized to conduct gaming."

Ultimately, the Seminole freedmen were allowed back into the tribe, Velie said.

Velie said Saturday's vote already has hurt the tribe's public perception.

"It's throwback, old-school racist rhetoric," Velie said.

"And it's really heartbreaking, because the Cherokees are good people and have a very diverse citizenship," he said.

Miller, the tribal spokesman, defended the Cherokees against charges of racism, saying that Saturday's vote showed the tribe was open to allowing its citizens vote on whether non-Indians be allowed membership.

"I think it's actually the opposite. To say that the Cherokee Nation is intolerant or racist ignores the fact that we have an open dialogue and have the discussion, he said.

Cherokee Nation Expels Native Citizens with African Ancestry

WASHINGTON (AFP) - Native American Cherokees voted to expel descendants of black slaves from their tribe nation in a special election that has prompted charges of racism, according to returns made public early Sunday.

But a vote of 77 percent to 23 percent, the Cherokee Nation in Oklahoma adopted Saturday an amendment to their constitution that strips membership from so-called "Freedmen," those descended from slaves once owned by Cherokees, blacks who were married to Cherokees and children of mixed-race families.

"The Cherokee people exercised the most basic democratic right, the right to vote," Chad Smith, Principal Chief of the Cherokee Nation, said in a statement. "Their voice is clear as to who should be citizens of the Cherokee Nation. No one else has the right to make that determination."

However, opponents of the amendment say it was a racist project designed to deny the distribution of US government funds and tribal revenue to those with African-American heritage, US media reported.

"This is a sad chapter in Cherokee history," Taylor Keen, a Cherokee tribal council member who opposes the amendment, told the New York Times.

"But this is not my Cherokee Nation. My Cherokee Nation is one that honors all parts of her past."

Advocates of changing the 141-year-old treaty rules defining who is a Cherokee say the tribal nation has a sovereign right to decide citizenship and that other tribes base membership on blood lines.

The Cherokee Nation, which ranks as the second-largest tribe behind the Navajo, has some 250,000 to 270,000 members and is growing rapidly. Members are entitled to benefits from the US federal government and tribal services, including medical and housing aid and scholarships.

Cherokees, along with several other tribes, held black slaves and allied themselves with the Confederacy during the US civil war. After the war, the federal government in an 1866 treaty ordered the slaves freed.

In 1983, the Cherokee Nation expelled many descendants of slaves as members but a Cherokee tribunal ruled last year that the Freedmen were fully-fledged citizens with voting rights. That court decision prompted Saturday's special vote.

Native American tribes recognized by the United States government have the right to self-determination and authority similar to US states.

Election results will remain unofficial until certified by the Cherokee Nation Election Commission, but officials said percentages were not expected to change significantly.