MGM Resorts International (MGM) is pinning its hopes on possibly the most awaited boxing bout of this generation. Last week, boxers Floyd Mayweather and Manny Pacquiao finally sealed a deal for a match on May 2 in Las Vegas’ MGM Grand and the record demand for tickets has resulted in exorbitantly priced tickets.
Although tickets are not yet available for sale to the public, Forbes says the starting price is expected to be roughly $1,000 with ringside seats carrying a price tag of $5,000. Reportedly, this translates to nearly $40 million in revenue for the MGM Grand Garden Arena, which has a capacity of 16,800 seats.
However, as sponsors, promoters and fighters will book most of the tickets before they go on sale, very few tickets will be left for the general public. Reportedly, ringside seats will only be available to customers who have a $250,000 line of credit and spend that amount over the weekend.
Rumors spread that the hosting venue MGM Grand Hotel was fully booked for May 1 and May 2, due to a computer glitch, only minutes after the fight was announced. Later, however, the hotel debunked the rumors stating that plenty of rooms were available.
For MGM Resorts, this boxing match should bring in substantial revenues and boost its Las Vegas business, especially when the Macau operations are under pressure. The company is currently focusing on its U.S. business and hopes that the match will result in higher customer spending at its venue.
MGM Resorts, currently, carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same sector include Boyd Gaming Corp. (BYD), Churchill Downs Inc. (CHDN) and The Madison Square Garden Co. (MSG). All these stocks carry a Zacks Rank #2 (Buy).
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