Park City, Utah, local billionaire and Cloudflare CEO Matthew Prince is once again expressing interest in purchasing Park City Mountain Resort (PCMR) from Vail Resorts, arguing he could drastically improve the experience for guests and employees.
On March 9, Vail Resorts reported lower-than-expected Q2 earnings. Prince did not wait long before posting on Twitter (X), “Vail Resorts ($MTN) likely to open tomorrow down to where if you invested 10 years ago you’d have done as well putting your money in a hole. It’s time for a change to become more asset-light, sell off resorts, and allow character and differentiation to return to skiing.”
While his prediction did not come true and the share price actually bounced, as investors had potentially anticipated worse news or a lower dividend, while Vail Resorts kept its dividend stable, the earnings announcement by the ski industry magnate certainly was disappointing. The company reported that due to record-low snowfall across the Rocky Mountains, earnings had fallen 14.1% for the second quarter compared to last year’s earnings.
The drop in earnings prompted Prince to once again suggest that Vail Resorts sell PCMR to him. In response, major Vail Resorts shareholder and billionaire Ron Baron allegedly told him to “go to hell,” according to Prince’s comment on his own post.
Not surprisingly, Vail Resorts CEO Rob Katz also guided lower for the full fiscal year. “Due to the persistent, historically challenging weather conditions in the Rockies, which continued to limit terrain availability, the company is reducing its fiscal 2026 guidance,” the Q2 report quoted him. Vail Resorts expects full year earnings in 2026 to come in lower than initially forecast. Fiscal 2026 net income projections were lowered from between $201 and $276 million to between $144 and $190 million, a drop of 28 to 32%, while EBITDA is forecasts to drop between 9-11% from previously $842 to $898 million, down to between $745 and $775 million.
After the worst snow year on record across the Rockies, this ski season has been one that many Rocky Mountain skiers will try to forget. Starting with a warm and dry early season, many major resorts were forced to postpone opening days. The rest of the season saw high-pressure after high-pressure system, with just a few storms breaking through. PCMR has reported 157 inches as of March 13, more than 200 inches behind their average season total. Just across the ridge, Alta has reported 260 inches, when they average 548 inches across a typical season. Alta is nearly 300 inches below average, cementing it as a record-setting season, and not the good kind of record-setting. The rare bright spot has been the Northeast with sustained cold temperatures this year and consistent snowfall throughout the season.
This comes after years of ongoing issues at PCMR, ranging from lift accidents to national news during the 13-day ski patrol strike in 2024, which resulted in a class-action lawsuit. During the strike, there was chaos from communication failures to two-plus-hour-long liftlines with guests chanting, “Pay your employees.” Another issue Prince is alleging is that Vail is siphoning PCMR profits away from Park City and onto corporate balance sheets and dividends. Prince wants to turn the tables and return the mountain to local ownership.
Prince has been publicly nudging Vail Resorts over the past 11 months to sell PCMR. Prince wants to purchase PCMR so that he can revive the resort where he grew up skiing, and continue the legacy of the mountain he knew from his childhood. People have expressed concern that another billionaire will turn a major ski resort into a private club like Powder Mountain. If he were to take ownership of PCMR, Prince is determined to keep PCMR open to the public. Only time will tell how this dispute will play out, but one thing we can count on is that we will be hearing more about this in the future.