The merger of mergers?; Hooters up for grabs

This morning Credit Suisse analyst Cameron McKnight reported that MGM Resorts International is “possibly” looking into a buyout of Caesars Entertainment, news that is certain to have a salutary effect on the latter’s stock price. What should be of more concern would be MGM’s ability to finance such a deal, given that its high long-term debt load has long been a burden upon the company. At present it stands just short of $14.7 billion (Las Vegas Sands is carrying $11.9 billion and Wynn Resorts $8.3 billion). Does CEO Jim Murren really want to double down? It was just such a move that sent Caesars spiraling into bankruptcy. McKnight doesn’t elaborate on the MGM news other than to say that other companies (unspecified) are kicking the Roman Empire’s tires as well. Speaking of Sands, it has the money but someplace like Bally’s doesn’t fit with the company’s carefully manicured image. Ditto Wynn, which goes out of its way to maintain an upscale position. The prime suspect would be Penn National Gaming, which has wooed Caesars before and has a low debt load. Penn never saw a casino it didn’t want to buy — and Caesars, being between CEOs, is potentially vulnerable, so let’s see if that scenario emerges.

Although MGM is the half-owner of T-Mobile Arena, the latter’s primary tenant, the NHL’s Golden Knights, has chosen San Manuel Casino in California as its sponsor. It’s kind of fitting that the NHL’s Cinderella team should partner with an underdog casino. Caesars Entertainment is putting its stamp on Raiders Stadium, as well as entering into a partnership with the Baltimore Ravens, who play cheek-by-jowl with struggling Horseshoe Baltimore. It’s also struck a deal with the Philadelphia 76ers and will operating sports-betting lounges in Prudential Center, not to operate as sports books per se but to “promote” mobile wagering. (Caesars is even going into the restaurant business at the arena.) MGM is getting into the act by act by by becoming the “official gaming partner” of the hapless New York Jets. That’s likelier to fly with the NFL than the Jets’ sponsorship by 888.com, The league frowns on offshore gaming sponsorships, although the Jets are trying to split hairs by arguing that the deal doesn’t direct punters to 888sports.com. A winning contention? You be the judge.

* Hooters Casino is for sale (again). An S&G source says that real estate firm Cushman & Wakefield has listed the property. It’s historically been difficult to find takers for the ramshackle hotel-casino, which is not wearing its years lightly. Considering its proximity to the Tropicana Las Vegas and MGM Grand the underlying real estate may be of more value than the buildings sitting on it. Which is a nice way of saying any buyer should break out the wrecking ball, The demise of Hooters might sadden Jon Gruden but would otherwise not cause any great sorrow. Its theme seemed like a natural for Las Vegas but we quickly learned that what passes for risqué in Middle America is awfully tame for Sin City. Time for a new concept — and a new building.

* Has it really been five years since Mark Frissora took charge at Caesars? Time flies. Anyway, former Pinnacle Entertainment CEO Anthony Sanfilippo, who became jobless last week, is being tipped as Frissora’s successor. Should that be the case, S&G would give the hire a standing ovation. Caesars couldn’t do any better.