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I guess I should have waited a week to write my column about the possibility of U.S. Sen. Jim Justice getting into the 2028 Republican primary to challenge Gov. Patrick Morrisey, because now the cold war between the two I wrote about last week has become a hot one.
Last week, the West Virginia Lottery Commission voted unanimously to approve the Greenbrier Resort’s financing transaction between the Justice family and Kennedy Lewis Investment Management and change ownership and control in the associated board, which places KLIM in majority control of the hotel and casino.
Mere moments later, Morrisey released a statement on the approval:
"I am hopeful that the new controlling owner will bring much needed financial stability to the iconic Greenbrier resort,” Morrisey said last Wednesday.
The deal between the Justice family - who bought the Greenbrier from CSX in 2009 and opened the Greenbrier Casino Club a year later - and KLIM is a partnership that gives KLIM 51% control of the resort and associated properties with the Justice family having a 49% stake.
A new five-member board was created, with three seats controlled by KLIM and two seats controlled by the Justice family (Justice’s daughter Dr. Jill Justice, the previous president of the Greenbrier, holds one of those seats). KLIM appointed Lloyd Nathan, who has 10 years with MGM Resorts International, as chairman of the Greenbrier's Board of Directors.
The approval by the Lottery Commission was the last piece of the puzzle needed to complete the KLIM/Justice partnership, which pays off the remainder of the previous debt held by TRT Holdings (and previously by Carter Bank and Trust), as well as all outstanding federal, state and county taxes. KLIM and the Justice family began negotiating the $500 million deal in May.
The Greenbrier remains on a financial watch list with the Lottery Commission and is required to provide quarterly reports to Lottery officials, but those same officials said last week they had reviewed the finance deal and were comfortable with telling the commission to approve the deal. Morrisey went on to welcome the new ownership.
"As Lloyd Nathan, the new Chairman of the Board of the Greenbrier Resort, becomes more acquainted with the Greenbrier Valley, we are committed to working with him to refurbish and enhance this historic property," Morrisey said.
This isn’t the first time that Morrisey has addressed the KLIM/Justice Greenbrier deal. He issued a statement shortly after it was finalized on Aug. 14, much to the confusion of state political watchers. Why on Earth did this warrant the governor weighing in on this issue? It almost appears he was gleeful that Sen. Justice, his predecessor as governor, is no longer the sole owner of the historic resort.
Well, Justice certainly took offense to Morrisey’s public statements and took to social media last Wednesday evening to express himself:
"Patrick seems awfully eager to take shots at people who actually take risks, build businesses and create jobs in West Virginia," Justice said. "I've spent my life doing exactly that - signing the front of paychecks for thousands of West Virginians, not just collecting one. ... Now the resort has a strong new partner and a bright future. Patrick can keep playing politics. We'll keep building."
Morrisey, who is probably one of the most online state officials I’ve ever seen, quickly fired back:
"I wish you the best, but you can't blame me or anyone else for your financial mismanagement in losing The Greenbrier," Morrisey said. "I hope you'll join the Greenbrier’s new leadership and me in keeping jobs in West Virginia while restoring the resort to its former glory. Keep the faith!"
Let’s start with the obvious: This back-and-forth between two of West Virginia's top three elected Republican state officials is just unseemly, especially over social media. But Morrisey clearly drew first blood here.
I think it raises questions about whether Morrisey possibly meddled in the process of the Greenbrier trying to keep its casino license active and the Lottery Commission’s processes. Beyond appointing its director and appointing commission members, governors typically do not involve themselves in Lottery Commission matters.
Of the seven members of the Lottery Commission, only two are Morrisey appointees (Steven Dragisich and Matthew Chapman), while the remainder were most recently appointed or reappointed by Justice during his final year as governor in 2024.
It is interesting that one of those commission members, Chapman, had to be reined in by another member last Wednesday when he started asking Justice attorney Steve Ruby questions about Justice business operations that had nothing to do with approving the new Greenbrier ownership.
It is also interesting that when it looked like the Greenbrier’s casino would need to shut down and furlough employees while it awaited Lottery approval that acting Lottery Director David Bradley stated he would not be pressured into calling an emergency meeting of the Lottery Commission to approve the new deal.
On one hand, I get not wanting to appear like you’re doing a special favor for Jim Justice. On the other, the Greenbrier and its casino are profitable and contribute to the Lottery and Excess Lottery fund surpluses the state sees every fiscal year. It almost appears this was all meant to ensure the deal would be done and the Justice family would not have majority control before moving forward.
Eighteen months into his first term, Morrisey has a reputation for micromanagement of state departments and agencies, with many decisions being funneled directly to him or his top lieutenants in the Governor’s Office. Morrisey involving himself would not be unusual.
And also, Gov. Morrisey and first lady Denise Morrisey fancy themselves Greenbrier County royalty, with a home there. I’m not sure the people of Greenbrier County see them as one of their own given that two of their handpicked Republican legislative candidates lost their primaries to incumbent GOP lawmakers.
I have no idea whether Justice will come back to run for governor again. But Morrisey’s actions seem like a surefire way to coax Justice into a race.