{"id":25851,"date":"2020-01-17T08:09:32","date_gmt":"2020-01-17T16:09:32","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=25851"},"modified":"2020-01-17T08:09:32","modified_gmt":"2020-01-17T16:09:32","slug":"springfield-the-boss-hits-town","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/springfield-the-boss-hits-town\/","title":{"rendered":"Springfield: The boss hits town"},"content":{"rendered":"

After a worst-month-ever\u00a0December at MGM Springfield<\/strong>, company CEO Jim Murren<\/strong> has apparently had enough. He flew into Springfield<\/strong> today to put a bit of stick about<\/a>, as the Brits would say. His ostensible \"\"purpose is to hang out with the Boston Red Sox<\/strong>, not that being seen with a bunch of cheaters is the world’s greatest PR idea. His new business plan is to emphasize events: more comedy acts, more concerts, more sports … more things other than gambling. He’s basically waving a white flag at Foxwoods Resort Casino<\/strong> and Mohegan Sun<\/strong>, tacitly admitting that seasoned gamblers aren’t going to change their playing habits easily (if at all).<\/p>\n

\u201cWe know that we need to drive a more consistent entertainment calendar in order to gain more consistent growth in gaming revenue,\u201d Murren told the Boston Globe<\/em>. Noting the speedy revenue growth of MGM National Harbor<\/strong>, he added, “Some of these properties ramp up really super quickly …\u00a0Some of them take longer, like this one, but we\u2019re in it for the long game.\u201d He’s looking at Springfield now through the lens of the company’s Las Vegas Strip<\/strong> business model, in which 70% of revenue is non-gaming. (It should be noted that MGM has enormous hotel revenue in Las Vegas<\/strong> and virtually no room inventory in Springfield. Maybe MGM shouldn’t have canceled that hotel tower, which we thought a bad decision at the time.)<\/p>\n

Admitting that entertainment-light periods in Springfield have seen relatively little gambling, Murren said,\u00a0\u201cWhen we have a concert, like an Aerosmith<\/strong> concert or Cher<\/strong> concert or several of the big tent-pole events \"\"we have, we have tremendous gaming numbers during those times.” He added, “our hotel business, our food and beverage business have been above plan, the entertainment has been pretty much on track.\u201d Such variety leads to “much more stable revenue platform.” The company is already prepping for sports betting, should Massachusetts<\/strong> ever get around to it. (Don’t blame Gov. Charlie Baker<\/strong> [R]; it’s the poky little puppies in the Lege who are at fault.)<\/p>\n

Allowing that sports betting is being legalized “at a slower pace than anyone predicted,” Murren allowed that “Massachusetts is a case in point where we\u2019re hopeful that good legislation moves forward, but it hasn\u2019t \"\"happened yet in the timeframe that people predicted, say, three years ago.\u201d Considering that MGM has sponsorships with both the New England Patriots<\/strong> and the BoSox (including a billboard on the Green Monster), maybe MGM picked the wrong end of the Bay State when choosing its ground. Murren argues otherwise: \u201cWe believe that anything we can do to weave together sports and live entertainment throughout Massachusetts\u2014not just Eastern or Western Massachusetts, but throughout the whole region\u2014can be of great benefit to us because we\u2019re creating more reasons for people to be part of the MGM ecosystem.\u201d For the meantime, MGM can let the ecosystem be and just worry about what’s wrong in Springfield.<\/p>\n

* Speaking of baseball, George Nicolau<\/strong>, arbitrator of two of the 1980s collusion scandals, died Jan. 2 of kidney failure at age 94. The healthy free-agent system that we take for granted today would not have been possible had Nicolau caught MLB<\/strong>‘s owners playing footsie with one another<\/a>. Andre Dawson<\/strong> and Jack Morris<\/strong> were some of the stars who were liberated as a result of Nicolau’s investigation. \u201cWhat transpired in 1986 occurred because everyone \u2018understood\u2019 what was to be done. By common consent, exclusive negotiating rights were, in effect, ceded to former clubs.\u201d Nicolau also subsequently discovered owners using a “databank” to signal to one another what they were bidding on free agents. Another huge settlement followed. Baseball fans across the country owe a debt of gratitude to the late Mr. Nicolau.<\/p>\n

* We were overly optimistic about the Baton Rouge<\/strong> market having hit bottom. December’s numbers showed a 5% decline, although some of that could be chalked up to one less weekend day. The Pelican State as a whole \"\"was down 5% on average, for a $210.5 million gross. Everybody got dinged a bit but nobody’s month was remotely as bad as that of Eldorado Resorts<\/strong>. Its Belle of Baton Rouge<\/strong> took an 18% spill to $2 million, Isle Grand Palais<\/strong> tumbled 15% to $11.5 million and just-sold Eldorado Shreveport<\/strong> plunged 13.5% to $8.5 million. Apprehension about the Caesars Entertainment<\/strong> takeover grows by the day.<\/p>\n

L’Auberge\u00a0Baton Rouge<\/strong> held steady for Penn National Gaming<\/strong>, flat at $12 million, while Casino Rouge<\/strong> slid 10% to $4 million. New Orleans<\/strong> had the least-bad month of any market, especially Fair Grounds<\/strong> racino, up 8.5% to $4 million. All other casinos were revenue-negative. Harrah’s New Orleans<\/strong> slipped 3.5% to $26.5 million, Boomtown New Orleans<\/strong> shed 5% to $10 million, Treasure Chest<\/strong> eked out a 1.5% slippage to $8.5 million and Amelia Belle<\/strong> slid 13% to $3.5 million. Speaking of Harrah’s, where are all those Cassandras who said a smoking ban would put it out of existence?<\/p>\n

Tilman Fertitta<\/strong> did not have a merry Christmas in Lake Charles<\/strong>, where the Golden Nugget<\/strong> plummeted 11% to $26 million, well behind L’Auberge \"\"du Lac<\/strong>‘s $29 million gross and 4.5% gain. Delta Downs<\/strong> shed 7% for $15 million. Up in Shreveport<\/strong>\/Bossier City<\/strong>, Penn was considerably less lucky at Boomtown Bossier<\/strong>, sliding 15% to $4 million. By contrast, Diamond Jacks<\/strong> turned things around, jumping 10.5% to $3 million. Margaritaville<\/strong> was flat at $13.5 million while Horseshoe Bossier City<\/strong>‘s $17 million represented a 5% slippage. Sam’s Town<\/strong> was down 6.5% to $6.5 million and Harrah’s Louisiana Downs<\/strong> shed 5% to close out the year with $3.5 million. Given the habitually low grosses at Louisiana Downs, we’re surprised that’s not the casino Eldorado chose to sell but CEO Tom Reeg<\/strong> must have his reasons.<\/p>\n

* Harriet<\/em><\/a> is a terrible movie. Between its ‘See Spot run’ dramaturgy, soporific pacing and stiff\u00a0Lifetime Channel<\/strong> casting (I hate the Lifetime Channel) this is one of the unworthiest Oscar<\/strong> entrants you’ll see\u2014hopefully not. Sadly, it makes actual history look preposterous.<\/p>\n","protected":false},"excerpt":{"rendered":"

After a worst-month-ever\u00a0December at MGM Springfield, company CEO Jim Murren has apparently had enough. He flew into Springfield today to put a bit of stick about, as the Brits would say. His ostensible purpose is to hang out with the … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[113,60,244,176,199,4,190,140,84,72,112,245,10,69,74,243,9],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/25851"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=25851"}],"version-history":[{"count":1,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/25851\/revisions"}],"predecessor-version":[{"id":25853,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/25851\/revisions\/25853"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=25851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=25851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=25851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}