MGM Mirage jumps the shark

A foolish band of MGM Mirage shareholders did its best imitation of a herd of sheep and voted through management’s absolutely dreadful idea of renaming the company MGM Resorts International. So June 15 marks the date that the Mirage Resorts name, legacy and brand equity were expunged from MGM and flushed right into the nearest toilet in favor of the moniker of a Colony Capital subsidiary specializing in downmarket casinos (one of which, Resorts Atlantic City was recently surrendered to its creditors).

Way to go! The only solace is that Leo the Stylized Lion has returned.

“We believe this evolution honors our entertainment heritage, better represents the growing global presence our company has today and positions us to move forward under a unified brand strategy,” rationalized CEO Jim Murren, even though MGM Mirage Resorts International is not a company known for its diversity of brands. In fact, it’s been talking up the idea of franchising the Bellagio imprimatur, which runs a cart and horses through the “unification” idea. For that matter, Mirage still contains a great deal more cachet than, say, Aria. Nor have I heard anything about opening Vdara-branded hotels in Smolensk or Hanoi or what have you. One news story makes the new MGM business plan sound as exciting as going into business as the world’s largest housekeeping department.

In a comparably lametastic move, the players club is now called M life (love the cutesy lower-case “l,” don’t you?). If I ask for one, am I going to feel like I’m signing up for frequent-player points or life insurance? This name change, we are told “will increase customer intimacy and experience.” No, better and more frequent service will achieve those goals. And if “intimacy” is a high priority, stop building 4,000-room hotels that are cozy as an airport terminal, how ’bout it?

Of course, all the high-toned rationalizations in the world can’t hide the fact that MGM brass are still haunted by the ghost of Steve Wynn, 10 years after Kirk Kerkorian ran him off. Consider how Murren fumed to Steve Friess in an interview prior to the opening of what was supposed to be his and Kerkorian’s crowning achievement, CityCenter: “I think it’s a total understatement of our capabilities to say that other people like Steve Wynn are the great visionaries and the only one who can open something here. That’s just factually incorrect. We not only open things, but we operate them better than anybody.”

You can practically see the steam coming out Murren’s ears. Resentful much?

Keep moving, nothing to see. Having given one (capable) management group the boot, Greektown Casino has now lost another, as it stumbles its way out of bankruptcy. After several months of gains, Greektown revenues recently went south and this sort of turmoil hardly inspires confidence in the reorganized ownership structure.