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Old 03-03-2009, 11:32 PM
 
364 posts, read 863,727 times
Reputation: 245
I just read that MGM MIRAGE may have to file for bankruptcy; this follows an earlier story where Station Casinos got an extension to restructure their massive debt. My question is "has greed led - or perhaps, will lead - to these corporations' downfall"?

Did Station Casinos really need all of those local casinos built? Did Harrah's really need to purchase Caesars (corp) and did MGM MIRAGE really need to buy Mandalay Bay (corp)? Has those purchases put those respective companies in massive debt?

Do you think these corporations will sell off their assets (MGM MIRAGE already did with TI) to lower those debts? I'm curious as to how this will play out.

Thoughts?
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Old 03-04-2009, 12:17 AM
 
Location: Las Vegas
3,728 posts, read 8,221,624 times
Reputation: 1311
Quote:
Originally Posted by Lovetheoutdoors View Post
I just read that MGM MIRAGE may have to file for bankruptcy; this follows an earlier story where Station Casinos got an extension to restructure their massive debt. My question is "has greed led - or perhaps, will lead - to these corporations' downfall"?

Did Station Casinos really need all of those local casinos built? Did Harrah's really need to purchase Caesars (corp) and did MGM MIRAGE really need to buy Mandalay Bay (corp)? Has those purchases put those respective companies in massive debt?

Do you think these corporations will sell off their assets (MGM MIRAGE already did with TI) to lower those debts? I'm curious as to how this will play out.

Thoughts?
Could you post a link to your source?
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Old 03-04-2009, 12:25 AM
 
1,347 posts, read 2,113,963 times
Reputation: 483
ReviewJournal.com - Breaking News - MGM Mirage might face bankruptcy filing
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Old 03-04-2009, 12:49 AM
 
Location: Tucson/Nogales
16,502 posts, read 20,055,588 times
Reputation: 22476
Overall, I think the idea of MGM & Harrah's selling off some of their properties would create more healthy competition, and, may even create more tourism. Rufkin? buying Treasure Island, that's a good start.

Last edited by tijlover; 03-04-2009 at 12:49 AM.. Reason: spelling
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Old 03-04-2009, 01:16 AM
jpk
 
Location: Redmond, WA / Henderson, NV
531 posts, read 1,609,597 times
Reputation: 170
I agree competition is better. The massive consolidation meant that a company could let a bunch of properties rot and just promote their one or two crown jewels. If a company isn't going to give a property attention and try to make it attractive and profitable, sell it to someone who will. I know the goal of consolidation was to eliminate all competition, but that didn't work out so well for Vegas or for the companies doing the consolidation.
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Old 03-04-2009, 02:07 AM
 
391 posts, read 1,583,697 times
Reputation: 143
Debt was cheap. Many, many companies - not just casinos - got sloppy drunk from Alan Greenspan's punchbowl.

Takes a few years to build a casino. And the hot spots that can support these incredibly expensive resorts are few and far between, with competition globally pretty tough to even get a license. So you have to keep growing profits and the company, thus these guys bought some casinos. Bad business, but a failed tactic that has been done before, repeated, and will continue to be repeated in many, many industries.

There is no danger of Vegas "dying". Even if, as it looks, most of the key players will go bankrupt they will simply restructure and emerge stronger. They are still making oodles of money and are cash cows, they just have way too much debt service. In such a scenario, there is always money to restructure because there is too much value to let it go to hell.
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Old 03-04-2009, 02:46 AM
 
Location: Tucson/Nogales
16,502 posts, read 20,055,588 times
Reputation: 22476
Vegas can reinvent itself with Fun features, which are sorely needed today. OK, so City Center opens. How many people are going to exit City Center and say: Oh! That was so much fun! With a tip, our dinner was only $75. And I bought a souvenir t-Shirt for $29.95! It was one of the most fun places I've ever been to!

Myself, I don't know anyone who isn't depressed today (even the ones who are always laughing--there's a razor thin lie between a laugh and a cry) and people are looking for fun, some way to escape the reality of today, with their limited resources. That great big ferris wheel they were talking about, let's build it, one way or another, as all great follies pay for themselves in the long term. Let's hire some jokesters to prowl the Strip. Narrow the lanes on the Strip to allow more outdoor space for seating, outdoor cafes. Bring back the bungee drop at MGM. And I'm sure with all the creative people in this town, you could add 100 or more suggestions of fun for tourists who visit here. Go from Sin City to Fun City. Pack em' in!
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Old 03-04-2009, 04:34 AM
 
Location: Las Vegas
444 posts, read 1,430,583 times
Reputation: 183
If you build it, 'they' will come. If you build too much of it, you won't notice 'they' are here. If you build way too much of it, there won't be enough of 'them' to pay for all of it.

Can Las Vegas ever really draw enough people to support the massive expansion we have undergone?
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Old 03-04-2009, 10:27 AM
 
844 posts, read 1,771,603 times
Reputation: 485
I think MGM needs to sell off everything except the Grand. Re-open the theme park they have rotting away back there, and renovate their rooms (starting with the crappy shower heads).
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Old 03-04-2009, 12:10 PM
 
Location: Sitting on a park bench...
2,753 posts, read 5,764,068 times
Reputation: 738
If they've got crappy shower heads, shouldn't they call in a proctologist? Sorry, I couldn't resist. Besides, my sister is a room reservationist for MGM Mirage. She hasn't said anything about them going down the tubes.
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