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INSIDE GAMING: Anyone heard from Kirk?

It seems every analyst, pundit and investor has weighed in on the financial situation faced by MGM Mirage.

One voice has been silent.


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  • MGM Mirage majority shareholder, founder and board member Kirk Kerkorian has stayed behind the scenes as MGM Mirage faces its largest financial hurdle since he started the company in 1993.

    The national recession and stock market swoon have zapped the fortunes of the Los Angeles billionaire, who turns 92 in June.

    Forbes magazine dropped Kerkorian from 41st to 98th on its list of the world's richest people. His 54 percent stake in MGM Mirage, 148.8 million shares, once valued at $15 billion, has shrunk to less than $400 million.

    Kerkorian has always been media-shy. A spokeswoman for Tracinda Corp., his privately held investment arm, said he doesn't normally discuss MGM Mirage matters.

    Kerkorian wasn't commenting last week when the Strip casino giant avoided violating loan covenants for at least two months. MGM Mirage still faces a potential bankruptcy filing to restructure $13.5 billion in debt.

    That's not to say he isn't wielding some influence.

    "He is an active board member and concerned citizen of our community," MGM Mirage Chairman and Chief Executive Officer Jim Murren said. "As much as anyone, I think Kirk understands the gravity of the situation and seriousness. He has great empathy with what Las Vegas is going through."

    But is Kerkorian involved in negotiations with the company's lenders?

    "No," Murren said.

    Still, Kerkorian is not sitting around waiting for MGM Mirage's next step.

    One gaming analyst said Kerkorian and Senate Majority Leader Harry Reid, a close friend, have been calling financial institutions to try and raise the remaining $1.2 billion needed to complete the $9.1 billion CityCenter development.

    "Murren probably talks to Kirk once a day or every other day to discuss strategy," said one source.

    In the past, Kerkorian had direct involvement in the company's major transactions. He negotiated the $6.4 billion buyout of Mirage Resorts with Steve Wynn in 2000.

    More recently, Kerkorian arranged last week's $775 million sale of Treasure Island to Phil Ruffin.

    "Kirk is a smart man, and I negotiated the deal with him," Ruffin said. "He's absolutely involved."

    In the past, Kerkorian has taken steps to prop up MGM Mirage whenever the company's stock lagged, such as offering to buy more shares or taking pieces of the company private.

    Right now, its too late for artificial steps.

    "Whatever happens will be done with Kirk's approval," one observer said.

    Howard Stutz's Inside Gaming column appears Sundays. E-mail him at hstutz@reviewjournal.com or call 702-477-3871. He blogs at lvrj.com/blogs/stutz.

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    Jerry Travers wrote on March 26, 2009 11:38 PM: I'm absoutely delighted to see another superrich, tax-evading American is falling flat, flat, flat on his financial face!!!!


    American Gaming Guru wrote on March 23, 2009 01:25 PM: Good article. Thats the golden question.....where is Kirk! Come come out where ever you are and make the lion roar again!


    ross wrote on March 22, 2009 08:05 PM: To ET who wrote on March 22, 2009 at 05:53 PM:

    QUOTE: Anyone know why we didn't sale when the stock reached 10 billion? Harry is a great Nevadan,American if you do not know your a visitor.

    Jesse James was a Missourian. It did not make him great.

    Phew..........where do these people get their logic. Maybe ET is a MGM executive? Got to be. It's this foggy thinking that's stuffed the company.


    Greg wrote on March 22, 2009 07:49 PM: There were (are) a lot of very decent, experienced, dedicated people on the floor at MGM Mirage properties, including managers and supervisors, who felt the pain five to six years before today's current dilemma, and had Captain Kirk known some of that pain, the ultimately decline in passion for the brand, probably some of the things today, all the way up to the corporate office balance sheet, would be in much better shape. But times were too high and mighty, and the idea of becoming a world class brand and city in competition with Rome, London, Barcelona, Paris and all the established Conde Naste travel meccas of the world was just too big an egotistical rainbow not to chase the pot till the well went dry.

    Mr. Kerkorian is one of the best owners and developers to have invested in Las Vegas during the past half century. Mr. K still owns his MGM Mirage stock, he did not sell out before the economic decline.

    As to some of the MGM Mirage people who short staffed, short changed, pillaged and spent their way down the yellow brick road during the Bush years wearing a big smug smile, well, you know who you are, and time will tell if the wheels of justice grind slowly, but fine indeed.


    johnny angel wrote on March 22, 2009 07:00 PM: How do you lose $14,000,000,000 in less than 2 years??..That's right folks, as the world is using B's instead of M's.Goodbye Harrah's, Station, MGM & maybe more. Put your $20 under the pillow instead of video poker machines.Terrible's is toast due to No Smoking in the grocery stores. Elvis has left the building. Keep Smiling, as your EDR gives you a box lunch...Johnny Angel


    Kirk wrote on March 22, 2009 06:03 PM: I didn't realize you were looking to hear from me. Here it goes, this economy sucks, my stock portfolio bites, the stock market blows. Thanks, and please call me if you need any more information.


    ET wrote on March 22, 2009 05:53 PM: Anyone know why we didn't sale when the stock reached 10 billion ? Harry is a great Nevadan,American if you do not know your a visitor.


    Frank M. Pelteson wrote on March 22, 2009 04:32 PM: In the article, Mr. Stutz says, "One gaming analyst said Kerkorian and Senate Majority Leader Harry Reid, a close friend, have been calling financial institutions to try and raise the remaining $1.2 billion needed to complete the $9.1 billion CityCenter development."

    Does this mean that Senator Harry Reid is going to bring taxpayer's pork from the Bailout Package to support tottering MGM Mirage? Will this assure funding for Reid's reelection campaign?


    dan Burns wrote on March 22, 2009 12:36 PM: David: Please inform yourself by taking the time, roughly 1hour, and listen to the MGM management quarterly conf. call from last week. Check out MGM web page to replay the call. Additionally, please avail yourself to MGM Mirage 10k SEC filings also available to you. Thanks


    Ross wrote on March 22, 2009 12:15 PM: We all know Obama is the tele prompter puppet president, and Rahm Emaneul is his AIPAC handler.

    But Harry Reid a puppet too? Oh no!

    Time for Nevada to join the other 30 states and invoke the 10th amendment.Our Federal government has gone rogue.



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