Tuesday, Oct. 14, 1997 | 9:56 a.m.
The board's action, at a brief meeting in Las Vegas, had been held over from a GCB session last week because of a flaw in paperwork submitted to the panel.
The deal, which now must be approved by the state Gaming Commission at an Oct. 23 meeting, will end a sometimes uneasy relationship between Morton and the Lake Tahoe-based casino company.
The partners bickered in recent months over growth plans and a proposed 350-room expansion of the $94 million, 340-room hotel-casino.
Harveys owns 40 percent of the rock-and-roll-themed hotel, which has been very successful since its opening in 1995.
Morton will pay Harveys $24.2 million to end the company's deal to manage the Hard Rock. He'll pay an additional $20.7 million to buy Harveys' portion of Hard Rock Hotel common stock.
None of the Hard Rock's 950 managers and workers are expected to lose their jobs in the deal.
The property recorded cash flow of $18 million during 1996 with sales of merchandise sporting the "Hard Rock" logo surpassing hotel room earnings. Casino winnings were the property's top moneymaker.
Publicly traded Harveys reported cash flow of $54.6 million for all of its operations, with a little more than $5 million coming from the Hard Rock.
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