MGM, AEG Tie Up for Sports Arena - Analyst Blog
05 Março 2013 - 9:00AM
Zacks
MGM Resorts International (MGM) recently inked
an agreement with AEG - one of the leading sports and entertainment
presenters in the world - to set up a high-end 20,000-seat indoor
sports and entertainment facility at the popular Las Vegas Strip.
The new arena would serve as a venue for boxing matches and other
sporting events, entertainment shows and other special events.
MGM presently boasts nine casino hotels in the Las Vegas Strip
namely Bellagio, MGM Grand, Mandalay Bay, The Mirage, Luxor, New
York-New York, Excalibur, Monte Carlo and Circus Circus. The
upcoming sports facility will be located between New York-New York
and Monte Carlo.
We believe this new venture will further enhance the MGM brand in
the highly competitive Las Vegas Strip. In fact, MGM’s entry to the
world of boxing, sports, concerts and other events will help the
entire Las Vegas market garner considerable footfall and
revenues.
The project will also feature new retail shops, dining and
entertainment offerings, especially at the New York-New York and
Monte Carlo properties which should boost guest occupancy at both
the resorts.
The latest deal, which is to be financed with equity contributions
from each of the partners as well as privately-funded third-party
financing, also marks a diversification from MGM’s age-old casino
business. Given, its dominant position in arena development and
management, AEG also makes a strategically fit partner.
MGM Resorts currently retains a Zacks Rank #3 (Hold). Other players
in the casino gaming industry, which look attractive at current
levels include Boyd Gaming Corp. (BYD),
International Game Technology (IGT) and
Melco Crown Entertainment Limited (MPEL), all
carrying a Zacks Rank #2 (Buy).
BOYD GAMING CP (BYD): Free Stock Analysis Report
INTL GAME TECH (IGT): Free Stock Analysis Report
MGM RESORTS INT (MGM): Free Stock Analysis Report
MELCO CROWN ENT (MPEL): Free Stock Analysis Report
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