MGM Resorts International, headquartered in Las Vegas, announced on Thursday that it has finalized an agreement to transfer the management of its MGM Northfield Park property, a racetrack casino situated close to Cleveland, Ohio, to private equity funds managed by Clairvest Group Inc. for a cash sum of $546 million.
Anticipated to be completed in the first half of 2026, pending regulatory approvals, this transaction values the property at approximately 6.6 times adjusted EBITDA for the 12 months ending June 30, 2025. MGM expects net proceeds of around $420 million after tax liabilities and transaction expenses.
Over the past year, MGM Northfield Park generated approximately $137 million in adjusted EBITDAR. Following the closure of this deal, the company’s master lease with VICI Properties, a real estate investment trust, will be modified to decrease annual rental fees by about $54 million.
“I would like to express my gratitude to the employees of MGM Northfield Park for consistently providing top-tier gaming and entertainment experiences to our visitors. This is an outstanding property with exciting potential ahead,” stated Bill Hornbuckle, CEO and President of MGM Resorts.
“At MGM Resorts, our ambition is to emerge as the world’s leading gaming entertainment company. To realize this goal, we are concentrating on expanding our digital ventures, exploring international growth opportunities, and continuing to enhance our premier integrated resorts in the domestic market,” Bill elaborated.
This sale occurs just two days after MGM retracted its application for a casino license in New York City, an alternative project previously projected by analysts to be worth around $2.3 billion.
Analysts from Jefferies LLC indicated that the 6.6x sale multiple reflects one of the most robust valuations for a single regional casino deal since the COVID-19 pandemic. “When applying MGM’s capital costs to the rental income tied to this transaction, the overall valuation would be close to 10x,” they suggested.
Jonathan Halkyard, CFO and Treasurer of MGM Resorts, emphasized: “This is an exceptional outcome for MGM Resorts, demonstrating consistency in achieving transaction multiples at substantial premiums compared to MGM Resorts’ current market position. This divestiture highlights MGM Resorts’ outstanding financial management, delivering considerable value that exceeds the original acquisition cost.”
“We appreciate VICI, the real estate proprietor of MGM Northfield Park, for their cooperative efforts with Clairvest to enable a fresh lease agreement,” Jonathan noted.
MGM Growth Properties procured the location, previously known as Hard Rock Rocksino Northfield Park, from Hard Rock in 2018 for $275 million. The following year, MGM Resorts took over the operations from MGP for the same amount and rebranded it as MGM Northfield Park.
The expansive 74,000-square-foot establishment includes nearly 1,600 video lottery terminals, a half-mile harness racing track, ten dining establishments, and an entertainment venue with around 1,800 seats.