thinking more mixed-use as city planning has trended, is there any chance for a smaller than Rio hotel & casino along with a ballpark?
the stigma around gambling and major sports seems to be quickly dissipating so it doesn’t seem that outlandish to imagine casino integration with a stadium concourse in some way.
stadium also gives the owner a venue suitable for the biggest touring acts
Any potential owner would be a complete fool to discard a valid casino license + hotel resort + MLB park development. The parcel is huge and can accommodate all that easily.
Anybody here thinks 110 degree weather hurts attendance for domed stadium?
Potentially, because some people might not want to spend time getting to the stadium in that weather.
But for 110 degree weather, we are basically talking about July and August and people will only be bothered for day games. That means we are talking about 6-8 home day games during those two months. Let’s say there are 5 such super hot games and attendance is down 20% for those, that’s a total of 30k less visitors a season at a stadium that otherwise averages 30k fans. Out of a total of 2.4mil fans that visit that stadium in a season.
Phoenix, the one city that’s hotter than Vegas, averaged almost 28k fans last season.
Fertitta in reverse merger talks with CET. Net plus.
Trooper talked about this and is confused about reverse mergers. What Fertitta is offering is to take over CET and controlling the company. But instead of the CET entity being absorbed into Fertitta's entity, the CET entity will remain. The reason they do this is because CET is already already publicly traded on the stock market. It's a way for Fertitta to get his company listed on the stock exchange without going through the huge regulatory crap and tens of millions of dollars in investment banking fees.
It seems unlikely to me that the $13 offer will be accepted. It traded at 14.50 within the last year. He'll probably have to raise his offer.
Trooper talked about this and is confused about reverse mergers. What Fertitta is offering is to take over CET and controlling the company. But instead of the CET entity being absorbed into Fertitta's entity, the CET entity will remain. The reason they do this is because CET is already already publicly traded on the stock market. It's a way for Fertitta to get his company listed on the stock exchange without going through the huge regulatory crap and tens of millions of dollars in investment banking fees.
Isn’t that exactly what a reverse takeover is? Private company takes over public company but uses the latter ones structure as a shell for the benefits listed by you.
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It seems unlikely to me that the $13 offer will be accepted. It traded at 14.50 within the last year. He'll probably have to raise his offer.
Caesars recently went through bankruptcy to get rid of a significant portion of their absurdly high debt. Any deal involving Fertitta would add a couple more billion of debt since he’s not nearly rich enough to outright buy Caesars which has a market cap of over $6.5bln. Doing that sounds just plain ridiculous.
And as I think about it for another minute, “plain ridiculous” is a pretty good description of Caesars actions over the last decade. So yeah, maybe that’s exactly what’s going to happen..
Potentially, because some people might not want to spend time getting to the stadium in that weather.
But for 110 degree weather, we are basically talking about July and August and people will only be bothered for day games. That means we are talking about 6-8 home day games during those two months. Let’s say there are 5 such super hot games and attendance is down 20% for those, that’s a total of 30k less visitors a season at a stadium that otherwise averages 30k fans. Out of a total of 2.4mil fans that visit that stadium in a season.
Phoenix, the one city that’s hotter than Vegas, averaged almost 28k fans last season.
Based on data it gets very hot in LV from early June thru mid September. (the warmest day in LV history was in June) IMO that would HELP attendance as a lot of people would gladly trade being out and about in 110+ degree weather for sitting/relaxing in an air-conditioned domed stadium for 3.5 hours. Add to that the entertainment options available before/after the game. It remains to be seen how difficult it will be to get to/leave the stadium, but I don't put a lot of weight on that being a big deterrent.
Isn’t that exactly what a reverse takeover is? Private company takes over public company but uses the latter ones structure as a shell for the benefits listed by you.
Caesars recently went through bankruptcy to get rid of a significant portion of their absurdly high debt. Any deal involving Fertitta would add a couple more billion of debt since he’s not nearly rich enough to outright buy Caesars which has a market cap of over $6.5bln. Doing that sounds just plain ridiculous.
And as I think about it for another minute, “plain ridiculous” is a pretty good description of Caesars actions over the last decade. So yeah, maybe that’s exactly what’s going to happen..
CET is well known for their lack of management skills, which Fertitta brings to the table. I doubt CET has the expertise to properly develop and execute a plan to build a MLB stadium and surrounding improvements, which if done right could be a huge winner.
Fertitta is also famous for spending other people's money, so the deal will need to be sold. As far as the $13/share offer, the stock has been tanking for a long time and is a good way for a lot of investors to get out.
Fertitta isn't going to pay $13 cash, that would defeat the purpose of the reverse merger. He'll probably do something like $3 or $4 cash, plus 1 share of stock for every share you hold now. Maybe slightly less cash and a convertible bond or something like that.
That would probably increase the likelihood of Caesars selling the Rio.
And MGM selling the Mirage, and who knows what else would have to be divested. But I think it's as likely of happening as the Rio being turned into an MLB stadium.
It'd be a disaster for gamblers that's for sure. Going from a near duopoly to a near monopoly.
There’s a huge difference between going from a “functioning for customers” duopoly to a monopoly but a very small difference going from a “functioning for businesses” duopoly to a monopoly.
The former is obviously the preferred state but MGM/Caesars is way closer to the latter and already far off what antitrust legislation tried to prevent. You could argue there’s not more competition between a MGM and Caesars property than there is between two different MGM properties.
Pretty sure a merger would look exactly the same as all those other questionable ones like AB InBev - SAB Miller. Divest a couple things you don’t want to have anyway and you’re good to go.
