The heart and soul of a ski town

A reverse stock split approved by Winter Sports Inc. shareholders last week will shut out more than 100 small investors once the vote is filed with the state.

The corporation is "streamlining" to give remaining shareholders better tax advantages, and that's probably a good thing for key investors who are now largely out-of-staters, some with trophy homes in Whitefish.

What the corporate maneuver couldn't do, however, was sever the bond many Whitefish folks still have for the home-grown Big Mountain resort. As one longtime shareholder said, it's not about the money. It's about the legacy. Handing over control to rich out-of-staters has been an emotional ordeal for many.

Winter Sports shareholders stood by their mountain through good times and bad - and there were several bad years in the resort's 59-year history. When there wasn't money for dividends during the lean years, shareholders were issued more stock and considered themselves lucky to have such a fine ski resort in their back yard. Longtime shareholders talk about an "all for one, one for all" camaraderie that has now slipped away.

Perhaps so, but the management of Winter Sports should be commended for pledging to work with its group of small investors to retain a community tie to the ski resort. Whether or not that can be accomplished in a meaningful way remains to be seen, but one way to do it is to listen to those who know the mountain so intimately.

Even if there's no legal way or time remaining for small investors to form a limited partnership to pool their stock, Winter Sports could consider an advisory board that would make recommendations, much like planning boards make recommendations to city councils.

Change is always difficult, but Big Mountain stands to benefit greatly in the long run from the kind of money new investors bring to the table. Private-placement stock offerings that began last year and close in March 2007 will bring about $24 million in new capital to Big Mountain.

That kind of financial muscle will allow Winter Sports to move faster in completing projects mapped out in its new master plan. It will ultimately help Big Mountain compete in a very competitive and often fickle market.

Winter Sports President and CEO Fred Jones said skiers won't notice anything different with the latest round of corporate restructuring. And he's right. There won't be any overt changes on the slopes today from a reverse stock split.

Down the road, there may be expansion and improvements that couldn't have been possible without outside money. But the real formula for a successful Big Mountain, it seems, would be to blend the new money with the old heart and soul of a community that continues to cherish its hometown ski resort.