Supplement | HBS Case Collection | February 2010 (Revised May 2010)

CityCenter (D): Financial Crisis, Grand Opening, and a New Paradigm

by John D. Macomber and Griffin James

Abstract

“CityCenter (D)” follows the (A), (B), and (C) cases with subsequent chronological events through CityCenter's grand opening in December 2009 and financial results through March 2010. The case includes a simple valuation exercise intended to explore CEO Jim Murren's options as he seeks to avoid an MGM MIRAGE bankruptcy. The (D) case presents Murren with the choice of selling the Borgata casino in New Jersey or receiving an ownership stake in CityCenter itself. Students will draw on EBITDA comparables and projections to complete a simple valuation analysis to take a position on which asset to sell. “CityCenter (D)” can serve as an in-class exercise or homework assignment to follow discussion of the (C) case.

Keywords: Insolvency and Bankruptcy; Private Equity; Games, Gaming, and Gambling; Decision Choices and Conditions; Entertainment and Recreation Industry; Nevada; New Jersey;

Citation:

Macomber, John D., and Griffin James. "CityCenter (D): Financial Crisis, Grand Opening, and a New Paradigm." Harvard Business School Supplement 210-067, February 2010. (Revised May 2010.)