“Preliminary talks” could mean relatively nothing but when one of the principal parties is MGM Resorts International, you have to take them seriously … especially when MGM is building an arena intended for major-league sports. Still, there don’t appear to be direct negotiations with an actual team but instead “a group interested in housing an NHL team.” Very different. Sports Business Daily has looked at the economics of an NHL franchise in Sin City and concluded that they don’t pan out. Then there’s the hostility of the league itself. Another wrinkle is that MGM partner AEG owns the Los Angeles Kings. The company would probably welcome having another market in which to show off the Kings, but how does it feel about building an arena whose primary tenant would be a rival franchise?
It still seems far more plausible than Continued >>
“Reneging on the promise to Springfield won’t just disappoint the community leadership and those hopeful citizens whose futures might ride on this particular economic development project; going back now will also hurt the efforts of all those who try to market Massachusetts as a state that stands behind its promises to those who want to do business here.” — editorial in The Springfield Republican urging against a repeal of Massachusetts’ casino law.
MGM Resorts International‘s third quarter was “better than expected” if you were J.P. Morgan analyst Joseph Greff and “disappointing” if you are Deutsche Bank‘s Carlo Santarelli. It’s a matter of how MGM performed relative to analyst forecasts. While the Las Vegas Strip properties arrived $42 million below Greff’s prediction, including an $18 million miss on table hold, he cited several extenuating circumstances, including construction disruption at Mandalay Bay and Monte Carlo. Santarelli was unforgiving, although MGM only missed his cash-flow projection by $31 million. He wrote, “unfortunately, the goodwill built up in the Strip margin story likely took a hit with this print. While disruptions were present, including construction and table hold, the result … is rather difficult to ignore.”
Santarelli conceded some praise to MGM for a 6% increase in Continued >>