Clairvest Reportedly the Potential Buyer of MGM Springfield

Clairvest Group, a Canadian private equity company, is reportedly in the running to acquire the operating rights to MGM Springfield from MGM Resorts International (NYSE: MGM). That is if the Massachusetts city allows a transaction to move forward. MGM Springfield. Rumors suggest Clairvest could be a bidder for the casino. (Image: MGM Resorts) Citing the Springfield City Solicitor, The Republican, that city’s local newspaper, and MassLive reported that Clairvest is involved in some fashion in a potential divestment of the Springfield casino by MGM. The speculation surfaces at a time when the Las Vegas-based gaming company is at odds with Springfield regarding what the city believes are broken promises in the casino host agreement. The $960 million Massachusetts gaming venue opened in August 2018, but since then, the property has disappointed with even MGM acknowledging as much. The city accuses the operator of failing to maintain a previously promised staff level of at least 3,000 and a roster of 2,800 to 3,000 slot and video gaming machines and 75 to 100 table games. Fast-forward to today and the word on the street is that Springfield Mayor Domenic Sarno is stalling a possible sale of the casino despite talk that a rumored buyer — potentially Clairvest — agreed to transition 101 State Street into a hotel. That property is adjacent to the casino and it’s believed the city would like to see it converted into a hotel. Why Clairvest Makes Sense as MGM Springfield Buyer Clairvest makes sense as a possible buyer of MGM Springfield because the private equity shop and the gaming company have history. Last October, the gaming company sold the operating rights to the MGM Northfield Park racino near Cleveland to private equity funds affiliated with Clairvest for $546 million in cash. That transaction closed in April and the venue is now known as Northfield Park Racino. The Ohio transaction is relevant because it means Clairvest has an established relationship with VICI Properties (NYSE: VICI), the company that’s also the landlord of MGM Springfield. That implies the property owner would likely be on board with MGM selling the Massachusetts operating rights to Clairvest. There are other reasons why Clairvest is a potentially logical suitor for MGM Springfield. Over two decades, the investment firm has held “ownership interests in 62 land-based gaming assets,” according to its website. Its stakes included 13 “mature” casinos, 10 redevelopments, 10 greenfield projects and an investment in a distributed gaming operator, among others. MGM Wants Out of Springfield An estimated sale price for MGM Springfield hasn’t been disclosed, but MGM has said the city dragging its heels on the transaction could cost the operator $500 million. If the venue is divested for around $500 million, that implies the seller will take a slight loss because it sold the real estate in 2021 for $400 million to MGM Growth Properties, which was later acquired by VICI. As noted earlier, the casino giant put $960 million into developing the first traditional casino in Massachusetts history. It is clear that MGM would like to divest this asset and rumors to that effect are now old by industry standards, having initially surfaced in March 2024. The post Clairvest Reportedly the Potential Buyer of MGM Springfield appeared first on Casino.org.