Six Flags Confirms Plans to Sell 2 More Parks
If nothing else, I can see that this new team has an interesting game plan. Not sure if it will work, but it's significantly different from what the old management was doing, and I've always been an advicate for change. If this works, I could see SFI really making a turn around. If not, well, I guess even more parks could be sold off until the chain gets to a size that the company can successfully manage.
If you can't stand the heights, get out of the line.
http://sev.prnewswire.com/entertainment/20060126/NYTH16026012006-1.html
SK610 said:
If SF is looking at how much money they could make on the sale of the parks or the sale of the land that the parks sit on, I would honestly look for SFMM to be closing. They have the property that is on the land that has some of the highest land value in the chain. They could move the rides to other parks in the chain, and sell the land and make a huge profit.
It was said that Magic Mountain could fetch between $400 - $450 million. That's a lot. However, you have to understand that unlike AstroWorld, Magic Mountain's some-17 very large rollercoasters (if relocated) would drain a lot of resources just for the sake of them being dismantled and moved. And that doesn't include the park's four other large water rides, Hurricane Harbor, Bugs Bunny World, some 10 flat-rides, etc...And I just don't see any other amusement park operator chain picking up Magic Mountain (the park value and property value price is much too high - nearly half a billion dollars) if it goes up for sale and not sold to real estate developers.
Also, SFMM is the chain's second highest attended park - and used to be the first, before its operations and aesthetic upkeep nosedived into the dumpster. Although the property could fetch the company a good amount of cash flow for debt reduction and what not, getting rid of such an iconic park that serves a very responsive, very large metropolitan area would be a bad move in the long term for the company.
SFMW is just outside of San Fransico, and they have mrine life along with the rides.
Six Flags does not own Marine World. The land the park sits on and the park itself is in a joint venture/lease from the city of Vallejo. Six Flags was given the opportunity to buy out the park last year, but they chose not to. Thus, I believe the lease extended for another few years. I don't believe Marine World is leaving the chain anytime soon. Same said for Over Georgia. The company does not completely own the park and the land it sits on.
The real question is how much of a profit SF turns on those tickets...
...and I suspect the percentage is much lower than we'd guess.
my views won't be nearly as negative as in the past
If there aren't rants, why listen?
Coaster Lover said:
they mention how just reducing the debt to $1.5 billion would give them significantly more funds to play with.
Right... but their annual profit combined with the *sale* of AstroWorld still only chip that debt down to about $2 billion after making that interest payment (in a manner of speaking). Getting down to $1.5 billion will take a monstrous effort in the short term and just a herculean effort in the long term.
Jeffrey Seifert said:
They can't sell SFOT or SFOG because SF Inc. does not own them.
I never did understand how that worked either...Can anyone shed some light on this arrangement?
When they decided to build Six Flags Over Georgia in 1967, basically the same thing happened (a seperate group of private investors own this park).
By the time Six Flags Over Mid-America (St. Louis) was built in 1971, there was a Six Flags company to both own and operate the park. This is the only one of the three original parks to be completly owned by Six Flags.
*** Edited 1/28/2006 12:21:25 AM UTC by SFZIP***
My buddy got a SFA season pass for $50, I got my SFGAdv one for $75. April 1 we're hitting SFGAdv w/ my April free admission coupon, SFA on April 8, bouncing back and forth between the two til Halloween, except for a trip to SFGAm and another to one of the northeast parks. That's far from $30/ticket. Quite a few of those 3 million visitors will come in on season passes. SF is gonna need the money from our $30 & $40 season parking passes to make up for our 25 visits for $125 ($2.50 per person each visit)! Somehow I don't think our trips will really help pay for El Toro.
DBJ said:
use an average ticket price of $30 bucks at SFMM (for kids, discounters), and around 3 million visitors
And can I still get free refills on my 2005 Brutal Planet Fright Fest barbell cup in 2006? *** Edited 1/28/2006 12:38:32 AM UTC by Erinys***
Lord Gonchar said:
Yes, but ticket gross does not equal profit. A one time land sell does.The real question is how much of a profit SF turns on those tickets...
...and I suspect the percentage is much lower than we'd guess.
Thus my use of the word "gross". A 1 time land sale of even 500 million is subject to taxes, so any actual benefit of a sale would be significantly reduced. Just for fun, use the average capital gains tax of around 40% or even 30%. Just look at how little they are actually going to get for the land at Astroworld.
Of course, there are other revenue streams in the park, like in-park advertising/corporate sponsors, retail, parking, and food. The key for them going forward is to increase in-park spending. If every guest spent 20 on food, 20 on retail, 15 parking, 30 bucks to get in, just once a year, we are looking at serious money.
Not that these are accurate figures in anyway as some guests spend way more than others, and some way less, but it's to illustrate the potential of a park that routinely has 3 million visitors a year. A potential that's can reap much greater rewards than any benefit from a one time land sale.
That's not saying the new board isn't beyond making a huge mistake.
Erinys said:My buddy got a SFA season pass for $50, I got my SFGAdv one for $75. April 1 we're hitting SFGAdv w/ my April free admission coupon, SFA on April 8, bouncing back and forth between the two til Halloween, except for a trip to SFGAm and another to one of the northeast parks. That's far from $30/ticket. Quite a few of those 3 million visitors will come in on season passes. SF is gonna need the money from our $30 & $40 season parking passes to make up for our 25 visits for $125 ($2.50 per person each visit)! Somehow I don't think our trips will really help pay for El Toro.
DBJ said:
use an average ticket price of $30 bucks at SFMM (for kids, discounters), and around 3 million visitorsAnd can I still get free refills on my 2005 Brutal Planet Fright Fest barbell cup in 2006? *** Edited 1/28/2006 12:38:32 AM UTC by Erinys***
How many people visit a single park, or even two somewhat closely located parks 25 times in one season? The trip to Great Adventure has gotten ridiculously expensive in tolls (thanks Delaware), and gas prices are on the way back up again. Even in my most excited times about Six Flags America, there was no way I ever got close to that amount of visits, even with a trip or two to Great Adventure added in. Hey, some of us got to work, and transportation is getting out of hand.
Being tax-stupid, I wonder about capital gains tax on sales of property - if the appreciated gains pay off debt or are offset by losses, is it taxed the same way?
On topic, Six Flags is screwed up and i think the might end up selling SFNO, SFEG, LR, & SFKK?
DBJ said:
A potential that's can reap much greater rewards than any benefit from a one time land sale.
But not for a company in as much debt as SF.
Ive traveled out to San Antonio from Atlanta twice just to go to the SF park with hands down the best atmosphere. Modeling the rest of the chain after SFFTs operations is a good start!
Im going to cry if this park closes.
they wouldnt close the park that is right by their headquaters.
What about the one in canada. Do you think they would sell that ?
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