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Murren Leaving MGM

Discussion in 'Casino Industry & Development' started by Chuck2009x, Feb 12, 2020.

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  1. blainehamilton

    blainehamilton Tourist

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    Bellagio, aria and The Park are all reasonably filled with people on any given day. MGM Grand, Mandalay and the other lower end properties, less so but still not empty.

    One observation I made when at Bellagio last week: lots of people, some empty table games, tons of empty slot machines. Mandalay had maybe a couple hundred people on the games floor during the early afternoon.

    Resort fees really turned me off MGM and Caesars properties. Same with double digit snacks and minibar drinks. Parking fees were the last straw. I've moved on to Wynn and wont be looking back unless MGM and Caesars at least do an about face on the parking.
     
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  2. 44inarow

    44inarow VIP Whale

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    I've tried to stay mostly out of this discussion, and I certainly won't defend any strategic discussions, but this is factually untrue. Many, if not most, restaurants in Vegas (MGM or otherwise) have printed menus on a podium out front and also nice, printed menus that are handed out to guests which do not change on a day-to-day basis. I've been to plenty of places which are exactly the same price during peak and non-peak periods, putting aside holidays where everything goes up. Lots of restaurants outside Vegas don't print all their prices on their menus, as well. This is more a function of someone in marketing deciding it would look nicer this way, in addition to making it easier to update the menu (on the flip side, quite a few non-MGM resorts have menus that are substantively out-of-date, because they're based solely on the printer proof of the menu) as far as I'm aware.
     
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  3. Viva Las Vegas

    Viva Las Vegas Ramblin' Gamblin' Man

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    "Not only would you sell your mother, but you would send her Cash on Delivery"

    - Classic line from Wall Street

    What does MGM own, is there anything left to sell? Park Monte Carlo? Excalibur? Luxor? Chris Angel? Will Japan ever allow gambling / MGM to enter the market.

    Murren is smart, he grabbed/stole as much as he could without going the Gary Loveman / Fertitta bankruptcy route.

     
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  4. 44inarow

    44inarow VIP Whale

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    To be clear, they sold the physical properties but still are operating them. This is mostly a tax/capital thing.

    Criss Angel left MGM quite some time ago. At least a year.

    MGM is widely considered one of the frontrunners for Japan, especially now that Caesars and Sands have dropped out. They, Galaxy, and Genting are probably the most likely.
     
  5. The Rumor

    The Rumor VIP Whale

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    this is true about websites (it's a pain to have to update prices) but MGM 100% does surge pricing on restaurants on weekends and holidays, which is something you'd never see at a normal restaurant that isn't offering a fancy holiday menu. Not all MLife restaurants do, but they absolutely do it at some of them.
     
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  6. VegasBJ

    VegasBJ VIP Whale

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  7. Viva Las Vegas

    Viva Las Vegas Ramblin' Gamblin' Man

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    Thanks for posting.

    From the LVA article:

    Murren had been doing everything possible to placate dissidents, including selling almost all of the company’s real estate to sundry REITs and throwing employees under the bus with MGM 2020. In addition to receiving a retainer (read: non-compete) for 2021, Murren will have a soft landing, receiving $2 million in salary, a $4 million bonues, a $7 million “equity award” and a $12 million severance payment. We should all be ousted that way.

    Not everyone wish Murren well, Groused gaming pundit Oliver Lovat, “Jim Murren will be cursing the day he approved car parking fees, that, rather than MGM Growth Properties or saving the company in 2008/9, will be his legacy.”

    From the GGB Article:

    Equity analyst Steve Wieczynski of Stifel has sounded a note of caution, pointing out that the company has done its refinancings, announced its share repurchases, upgraded its properties, and gone through most of its EBITDA growth programs, leaving little else to drive growth.

    While relationships are cozy today, we’ll see if that changes come a business-depressing recession. And we’ll see, come recession, how investors and debt-holders react to a company that no longer has the security of real estate and higher book value to cushion hard times.”

    Every major decision focused on the short-term leaves a company poorly positioned for the long-term. I expect a caretaker CEO to dump whatever else they can before leaving the corpse to rot CET/Stations style over the next decade. Murran's ouster may look like a curse, but he already pulled nine figures out of MGM, and there is nothing worthwhile left to do at this point beyond the possibility of Japan. Time will tell if that ever comes to fruition.



     
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  8. mikel123

    mikel123 High-Roller

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  9. hammie

    hammie VIP Whale

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    Travel Zork mentions that “dynamic pricing” was discussed on an MGM earnings call. Tomato-Tomahto.

    https://travelzork.com/vegas-news-5may-2019/
     
  10. LolaDoggie

    LolaDoggie VIP Whale

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    Last time we went to Vegas was 2016. The high prices and extra fees were gathering steam. My husband and I decided to wait this cycle out.
     
  11. Bayou Diceman

    Bayou Diceman Tourist

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    Maybe this change in CEO and the time to rethink operation will allow them to put the customer first. When I return if things are the same in M-Life program I will look to make a change where I am valued for sure.
     
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