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MGM has sold MGM Grand and Mandalay Bay

Discussion in 'Slot Machines' started by SIlverGolfer, Jan 15, 2020.

  1. SIlverGolfer

    SIlverGolfer Platinum
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  2. MGMSpringfield

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    I'm a fan of MGM but would prefer them not to buy Cosmo. MGM owns enough of the strip, don't need them owning everything.
     
    COnative likes this.
  3. SIlverGolfer

    SIlverGolfer Platinum
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    It would merely be a real estate deal - the new partnership with Blackstone REIT is interesting given that Blackstone owns Cosmo
     
  4. Funkhouser

    Funkhouser Regional Gambling Specialist
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    More money for the shareholders and debt write down. The casino companies would rather pay rent and lower capital spend.
    REIT are attractive investments for the time being. I'm waiting for the next Vegas downturn when revenues drop and casino companies
    will have limited credit facilities because they don't have as many physical assets to borrow against. Then those rent payments will look YUGE
    and they will be desperate to get gamblers in the door.
     
    Hard4 and HighLimitorBust like this.
  5. chico7800

    chico7800 Silver

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    Interesting they already did the same thing with Bellagio.
     
  6. 44inarow

    44inarow Cool Story Bro
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    In addition, without getting into politics, the REIT loophole is exactly that, a loophole, and I can't imagine they won't try to fix that a few years down the line.
     
  7. 44inarow

    44inarow Cool Story Bro
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    Yep, this one is a little more complicated as I understand it (because it's not a straight-up sale/leaseback like with the Bellagio deal), but I'm sure this is designed primarily for tax purposes.

    @Funkhouser is absolutely right, by the way, at a certain point these companies are going to run out of assets to unlock. It's not all that different from cashing in your 401k; it gets you money in the short term, but it's not something you can do repeatedly.
     
    HighLimitorBust and kannedham like this.
  8. bayoubengal

    bayoubengal World's Worst VP Player
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    It’s just changing where the cost shows up on the balance sheet. It’s basically all the same in the end but it matters for accounting and how it looks for investors and SEC filings.
     
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  9. Mr2BOBCATS

    Mr2BOBCATS Gold

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    So the bird that lives in the MGM Grand Buffet.... who does she pay rent to and how much will it be?
     
  10. MGMSpringfield

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    I've heard and read nothing but bad reviews about that MGM Grand Buffet, I've never tried it myself. I wonder at on what point they give it a revamp? I realize its not the top tier property but it's still a big name in the brand.

    Maybe that bird is "seasoning" the buffet from above.......
     
  11. SIlverGolfer

    SIlverGolfer Platinum
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    I don't think it's a big name in the brand any longer. Just walk in and look around - old and tired - like NYNY and Paris
     
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