9 Comments

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  Phil K January 17, 2020

  Wow, we sure have come a long way from the early 2000s when all of the property consolidation/trading/purchasing was happening with MGM and Caesars. Just shows that nothing is permanent, and even the brightest financial minds make big mistakes. I am sure there is going to be a lot more of these creative land deals in the works, but it sure would be nice if someone got serious and put up a property that treated people like people, not sheep.

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  WILLIAM WINGO January 17, 2020

  Reminds me of the hospital scene in "Monty Python's The Meaning of Life" (1983) Michael Palin [hospital administrator]: "I see you have the machine that goes 'Ping!'...we leased it back from the company we sold it to...." //www.imdb.com/title/tt0085959/?ref_=fn_al_tt_4

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  Vice January 16, 2020

  Not a fan of MLife no no worries for me.

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  JeffinOKC January 15, 2020

  Lemme try this example.... Your uncle bought a grocery store in 1975 for 100 thousand dollars. Then a company that only owns and rents real estate offers him 1 million dollars today. He pockets a lot of money. Then, the real estate company decides to rent the grocery store back to your uncle for 5 thousand dollars a month. Your uncle is still in the grocery business, and the real estate company has a 45 hundred dollars a month payment on the building. Uncle adds speciality coffee, craft beer and gasoline with his free cash, and the real estate company makes a 10 percent profit on their low risk investment

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  alex January 18, 2020

  Actually, it's clear that you don't get it, Coop. You're making this into some grand scheme that somehow results in customers losing out. It's not. It's just back office finance stuff. Hate MGM Resorts all you want...just do it for a valid reason. This sale and lease back will have zero impact on customers. MGM Resorts is still in charge of everything. And that means they will (almost certainly) make questionable decisions that result in people like you hating them even more.

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  David Feldman January 19, 2020

  I don't know MGM finances but the concern is always pulling the profit/assets out of one company and putting it into another making the first company weaker. Look at Sears for example, CEO sold all the properties to himself, did nothing with the money and let sears keep hemorrhaging cash until bankruptcy. While there will be no immediate effect, there is the concern that they will be more volatile in a market downturn which could cause rash decisions or bankruptcy. Hopefully in this case though MGM has a good plan for the cash that will make them more money in the long run than the land itself. I know there was talk on here before that they need the cash to expand internationally.

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• 
  PabloD January 14, 2020

  That was an awesome summary. I had to check twice to see that I want reading The Onion... :-)

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• 
  Tim D. January 14, 2020

  No scoop on this one?

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  Scoop John B January 20, 2020

  If you're reading it in a press release, you're not reading Vital Vegas.

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