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MGM Mirage Sells Treasure Island to Phil Ruffin

By Chuckmonster on Monday, 15th December 2008 3:16pm
  » filed under Mergers & Acquisitions  comments: 5


MGM Mirage has sold TI Treasure Island to former New Frontier owner Phil Ruffin for $500M in cash + $225 in financing.

It's not a surprise that MGM Mirage decided to unload one of their smaller properties to help lighten their load during the economic downturn, but spiltting the Mirage/TI sibling properties down the middle could possibly a huge strategic blunder.

Ruffin's track record at the New Frontier was one of buying, holding then flipping the joint when he finally got his astronomical asking price from El Ad Properties.

His 'techniques' as an operator - if they could even be qualified as such - were to extract maximum value while inserting minimum investment in infrastructure, upgrades and appearances.

With TI's five year renovation/transformation plan finally completed with the full scale renovation of all of it's hotel rooms, Ruffin has a freshly re-chromed resort to 'work with' and tons of leftover cash from the New Frontier sale to buoy it through the economic downturn until another flipportunity rears it's head.

Many questions remain... is MGM looking at this sale as a 'bridge loan' though the economic bunker, and will re-assemble the M/TI coupling when in future cash positive days? What effect will a (possibly) declining TI have on the brand new and beautifully botoxed Mirage 2.0?

The chess pieces are in motion.

More at the LV Sun



Comments & Discussion:

So here's a question - Does Ruffin & company inherit the TI players as well? MGM Mirage probably doesn't want to open up its Players club info but what about the big players? Or even the hosts for that matter. Does MGM Mirage offer some of the hosts positions at other properties?

Now that MGM Mirage doesn't control TI, bring back the pirate theme, please?

MGM Mirage was stupid to sell a newly renovated property in great condition. It could have sold Excalibur or the Luxor, and have kept the property they were remodeling and prettying up for the past five years. Nice move, Kirk. NOT.

maybe hes gonna reinstall the frontier sign out front jus for wynn... but serioulsly i think hes gonna detheme TI do what he always wanted to and the frontier site. the jazz themed "Montreux"...

I have an idea for the name of the new player's club:
Booty Club

i do wonder if the tram connecting the Mirage and TI will remain open since the hotels no longer share owners. I stayed there the weekend right before the sale and i must say that i liked the place a whole lot. the new rooms were very nice looking and all of the resturants were pretty good.

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