MGM Mirage hires investment firm

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1. By neiman1

   April 4, 2009

   11:26 a.m.

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   If these properties sell during distress times, how does that impact their property tax payments and those of the "Properties" around them? It drops like a ROCK. We have huge deficits coming in tax payments and government needs to act now like they can see it coming.

2. By Gregory

   April 4, 2009

   12:57 p.m.

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   Despite public statements after Hurricane Katrinia, MGM Mirage has never been pleased with the performance of the Beau Rivage property, or it's effects for marketing to the southeast region of the country. Selling the resort would be a plus-plus for the company.

   MGM Detroit is a good property, but in a city where the high school graduation rate is very poor, and maybe one third of housing is vacant.

   Such interim "bridge steps" to sustain City Center Subsidiary and/or MGM Mirage Corporation without filing are prolonging the inevitable reckoning the company is "likely" going to have to face in restructuring debt.

   Since 2000 top management pursued a business strategy of spending to build the pyramids on the backs of their employees. If they file to restructure debt, this will exact short term hurt and they would lose much face and make some enemies, for sure. However, restructuring would help ease the burden for the employees having to continue carrying those building blocks of debt, i.e. "do more for less" for years into the future.

   Top management approach to problem solving the debt appears to continue down this same road of "building the pyramids on the backs of others" in long term strategic planning for the company, creating more deals and taking on more partners, to the point that the company will have created a book value at some point of "nothing" which is owned by "just about everyone available".

   Going after Kerry Packer's son is certainly bottom feeding, feeling up any warm pocket for cash.

   Not much different for the company's (and state gaming) reputation of signing up Pansy Ho as an objective partner in Macau, under no influence from her Father, when she received the money to invest from "her Father".

   Maybe top MGM Mirage executives do get lucky and slowly carve their name in the Vegas history books as operators who created big problems for the company in excessive spending, but dug their way out of them. Maybe in 10 years current MGM Mirage executives will own 80 percent of the Strip Corridor, standing awash in the spotlight of success in a city and industry that is fickle to fawn success.

   But judging from behaviors the past ten years will such success make Southern Nevada better?

   The problem has been, and remains, none of this is about the MGM Mirage employees and their best interests, it is about top management and their reputations, and perhaps, at some point way down the road if the company avoids filing, finally the interests of shareholders holding low value company stock today.

   Executives first, shareholders second. That sounds contradictory to movement in the country now, but alas, Nevada has always danced to it's own tune, attracted the uneducated and ultra conservative citizen of both youth and retirement. Which is to state if things stay the same in Nevada, there will be as many more pyramids as possible, and more people living paycheck to paycheck around them.

3. By denro

   April 4, 2009

   7:32 p.m.

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   Gregory, that is a very astute and well written post.

4. By Foxecon

   April 6, 2009

   1:18 a.m.

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   If you need to hire some "investment bankers", then try team Obama, they are for sale and have access to over a trillion dollars.

   From politco

   http://www.politico.com/news/stories/040...