Part 10/14:
The numbers make this disaster inevitable. MGM’s debt surpasses its revenue, with over 40% of annual cash flow consumed just to service debt. Caesars’ position is even more precarious; with debt exceeding revenue, interest payments outpace profits by nearly $800 million annually. Credit ratings agencies have downgraded several properties to junk status, and bond markets are pricing in imminent defaults.
Cost-cutting measures have already begun, including layoffs, service reductions, and facility closures disguised as renovations. Internal memos reveal a desperate focus on cash conservation, turning off escalators, reducing air conditioning, and halting non-essential spending—all signs of an industry teetering on the brink.