Go Behind the Gordon Ramsay Pub & Grill Contract

Sure, why not? Caesars Entertainment Operating Co. is in the midst of cost-cutting measures to pull itself out of bankruptcy, and the latest effort takes observers behind the scenes of shouty chef Gordon Ramsay’s contracts with the resorts.

The Wall Street Journal combs through the Gordon Ramsay Pub & Grill deal at Caesars Palace to find that the new deal saves Caesars right around $144,000 a year.

The deal needs to be approved by a Chicago bankruptcy judge, but if they move forward, the 10-year contract includes an option to renew for five years. Ramsay can influence the menus, but has to keep “pub-style dishes” such as the shepherd’s pie and fish and chips.

Ramsay is required to appear once a year in Las Vegas and be at the resort for 24 hours. He also must let Caesars photograph him. The deal also stipulates that Ramsay can fly first class or via private jet on Caesars’ dime, and he gets “three deluxe rooms” during his stay. That doesn’t include his incidentals, but Ramsay gets a 30 percent discount should he order room service or take something from the minibar.

Ramsay earns a 5 percent cut of quarterly gross restaurant sales up to $10 million. If the restaurant earns $10 million to $15 million, he gets 5.5 percent, and if the pub kicks up sales beyond $15 million, he earns 6 percent.

The restaurant has to make $8 million a year or Caesars has the option to end the agreement. For those following along, that means Ramsay makes a minimum of $400,000 a year based on a minimum $8 million in sales.

But the kicker comes with the WSJ’s final line: “Finally, Caesars can also terminate the deals if — prepare for the irony — Mr. Ramsay or his company files for bankruptcy.”