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| Heist at the Bellagio or plot twist for new Ocean's Eleven sequel ? Corporate Conflicts of Interest at MGM Mirage (MGG): The Bellagio casino is part of the publicly traded MGM Mirage Group. The Bellagio has a museum featuring original paintings from masters such as Van Gogh, Renoir, Monet, and Rembrandt with a total market value approaching $1 billion. It may come as a surprise to some to learn that Steve Wynn, the chairman and chief executive of the MGM Mirage is the actual owner of the majority of the collection. It is reported that the Bellagio rents the art from Mr. Wynn. Some of the paintings are rented at rates as high as $160,000 per month. Mr. Wynn receives approximately $4 million in rental fees from the Bellagio. To avoid any appearance of impropriety, only "arms length transactions" should be made. Given that Mr. Wynn is a senior executive with a controlling interest in the MGM Mirage, the rental fees may be construed by some as using company assets to finance the purchase of personal property for Mr. Wynn. Since the casino actually charges visitors $20 admission to the museum, it would be of interest to see if the attraction is profitable or simply a method to get potential gamblers onto the premises. © 2004 Nelson Chin. To inquire about consulting or speaking engagements, e-mail: Nelson Chin |
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