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Okay from our studios this week in Los Angeles and Tampa.
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This is Green Tagged Theme Park in thirty. I'm Philip
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from Gantum Lighting Controls. I'm dooining as always on my
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co host Scott Twinston of Scott Swinson Creative Development. On
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Green Tad, we look at the week's top news and
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we try and explain why it matters to induscy professionals
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ask some questions. We don't really have the answers, but
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we try to open a dialogue. And that's going to
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be what we're doing this week, in particular, because we're
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gonna be talking about the Six Flags refinancing of their
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debt and we are not financial experts, but we're going
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to try and puzzle through it with all of you.
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Yeah. I got into the performing arts because I was
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told there wouldn't be any math, So you know, I
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was totally wrong. But yeah, so no math is not
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my friend. However, financial theory I do understand pretty well.
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It's just the actual computation. And then all of a sudden,
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here's the thing about finance, as far as I'm concerned,
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The rules of finance change so very often that the
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best the easiest way to keep track of anything is
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to keep it in the simplest possible terms and then
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rely on experts who study the minutia to actually execute
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those simple plans. But and this show also marks a
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very important moment. We're going back to talking about six Flags.
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Yes, I know they're all happy about that.
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Everybody loves six Everybody loves our shows when we talk
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about six Flags. So we're going to talk about six
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Flags yet again.
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Here we go.
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OK.
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The easiest way to explain this, actually, I think came
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from Robert at Theme Park Insider, who you know is
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a great journalist, and he basically was like, six Flags
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is that friend who has a credit card and they
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tell you they're going to get a new credit card
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to put the debt from the old from the old
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credit card onto the new credit card. And I think
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that's a great way of explaining this, except you have
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to expand this to being the largest theme park chain
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in North America. So I did a lot of digging
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to try and explain make sure we didn't get it
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that much wrong. I'm sure we're still going to get
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stuff wrong, but I tried to do as much as
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I could here. Essentially, they're planning to borrow a billion
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dollars in new long term debt and use that money
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to pay off debt that comes sooner. So they had
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debt that was going to be due in twenty twenty seven,
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but they're doing They're issuing a billion dollars of new
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senior notes that'll be paid off in twenty thirty two.
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It's a private debt sale, so it's going to be
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sold to large institutional investors. It's not going to be
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able to the public. We're not even going to really
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know who bought the debt until maybe much later after
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it starts showing up on sheets. So they the key
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here for me, Like I was thinking about, like why,
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what is the thing here to me? The whole it
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all boils down to opportunity cost because what this means
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in layman terms is yes, they are issuing new debt,
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they are treating it out, but the thing is the
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difference in the interest rate and why that matters. So basically,
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the new notes, and this was just announced a few
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days ago after the initialnouncement, they announced the new notes
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are going to be at an interest rate of eight
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point six five percent. That matters because the ones that
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we're doing twenty twenty seven were only five point five. Okay,
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so five point five to eight point I mean, that's
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over three percent on a billion dollars. So I put
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the math in here for Scott. But basically basically what
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that boils.
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Down, Philip, I appreciate that.
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So what that boils all, what all this boils down
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to is that six Flags is going to be spending
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about thirty million dollars more on just interest every year.
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So thirty million dollars a year on interest because they
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have to refinance their debt to a later time period.
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That that that's that's what's going on. That's it. That's
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that's the whole nutshell.
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So what I'm hearing then is it's kind of like
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you're they're treading water in a pool and in order
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in order to keep paddling that have to add a
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forty pound weight to their waist. So, in other words,
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it's more difficult, more financially difficult. They have to spend more,
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they have to work harder, they now have to make
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their income.
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Have less breathing rooms today, Yeah, yeah, exactly, like they
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have a little bit less room for experimentation, Like operations
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have to get more efficient all this because you're going
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to spend more money servicing your debt and as opposed
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to doing stuff like taking risks on new shows or
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doing more entertainment experiences or whatever. Now this wasn't their
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only option. I think this is what Scott and I
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were trying to figure out. It's like, what else could
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they have done? What else could they have done? Right?
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And again not financial experts here, but I think I
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tried to do as much research I could on this
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to understand it, and I feel like the only other
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option it seems like they had to me, was really
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just they could have used more of their operational revenue
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to pay off the debt that was coming to immediately.
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But that and again the treading water thing, that would
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have reduced their ability to do some of the stuff
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they've been talking about, like upgrade the food and do
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new Halloween experiences and all the stuff. If they're putting
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their operational money towards this debt, they lose that. So basically,
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this is like, if we had more of the money
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now to build better infrastructure, could that infrastructure make ultimately
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more money so that we could not only pay off
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the additional three percent the thirty million per year, but
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even go beyond that, So it's more like a much
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more long I think, longer term. Bet. It's like if
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we had the money now to redo these restaurants, and
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the restaurants made more money over between, you know, now
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in twenty thirty two, is that money going to be
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more than the additional debt that we're financing.
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Right, but it allows them to go to twenty thirty
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two instead of twenty twenty seven.
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That's right, that's right. And I mean there's other things
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they could have done, Like they could of they could
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have sold more assets, right, they already talked about that.
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I'm not sure they're not going to. I'm still not
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sure they're not going to. You know, I think that
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basically this kind of keeps them, keeps them afloat status
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quo for five more years. That's I mean putting it
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in the simplest possible terms. So if they want to
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start showing profitability or paying off these debts sooner, which
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of course all of the stockholders are going to want,
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then they're going to have to. They're going to have
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to be lean and mean for a while, and that
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may mean selling off more assets. I don't I mean,
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I don't know, you know, it's.
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I mean, we're just talking broad strokes, right, It's like
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they I mean, you're right about the timeline. I mean,
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twenty twenty seven is not that. I mean, yeah, the
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question would have been, is there an asset like another
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park they could have sold off fast enough, right before
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that ceiling came. I mean that. I mean that's they
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also could have and.
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The finances would have come in for that sale because
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you know these park sales right that finances go you know,
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usually drug out every ten to fifteen years, so you
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know that.
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It takes on. They also could have raised equity, right,
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but that would have diluted the stock, and you know,
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shareholders never like that when you're deluting stock, the stock,
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prip pressure, you know, all that stuff. So they could
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have done that. They also could have just done nothing.
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Right.
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They could have also waited and been like, hey, what
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if we get in enough revenue, you know, from whatever
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expansions we're doing, that it might possibly get there. But
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that's what I don't think that would have been likely.
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I mean, clearly, I think if that were going to happen,
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you it would have happened at Q four, which is
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when the Halloween and Christmas and all that stuff hit,
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they would have you know, that would have been the
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revenue spike, right, So.
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In essence, yeah, in essence, they're basically paying thirty million
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more per year to get an extra five years.
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That's right. Yeah, And that there is a some minutia
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in here too, like the debt was issued as unsecured,
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which does mean that like that that way, it doesn't
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tie up as many of the assets or whatnot having
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to be insecured debt or whatever. So, but that's also
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why they're paying a higher interest rate. I mean, so
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they are trying to basically make themselves as liquid as possible.
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But it sounds to me, and again, as Philip said earlier,
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we are not financial experts, and I certainly am not,
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but one of the to me, it sort of sounds
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like they're they're working to get things right that things
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have been have been kind of gone, they've kind of
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gone awry in the past, and they they're taking between
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now and twenty thirty two to get things back on
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track in a place. By twenty thirty two, if all
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goes as planned, I'm guessing their hope is that they
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will then be in a position to accelerate and expand
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and become more robust, et cetera, et cetera, et cetera.
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The question is will the patrons, will the guests wait
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until twenty thirty two for that kind of expansion that
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I don't know, that's right. That's basically they're doing the
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same thing that all Americans are doing right not all,
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but many Americans are doing right now, and that is
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to get another credit card to pay off their credit card.
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Like Phillips said earlier, you know, the debt in general
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in the United States is going up, is going up,
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and so they're kind of taking the same approach that
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you know, I did in the early nineties. It's like, oh,
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I got this credit card maxed out. I wonder if
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I can get a new credit card. Hey, look at that.
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I can get a new credit card, and simply by
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paying the minimum minimum amount due, I'm just basically wasting
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a ton of money. So but this at least sounds
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like it has a plan, so.
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Well maybe, I mean I think I think, well, that's
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exactly it. That's all the discussion, right. I mean, it
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does allow them some flexibility for breathing room, but it
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also means that they have to be tighter about their
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efficiency and margins, which means a little bit like less
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room for error in the long term. But then and
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so that would make you then basically the natural extension
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of all this is that it's more important now that
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their plan goes according to plan, they have less room
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for error. And so so far have we seen that?
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And I don't even have the answer to that. I
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think every everyone that comments on our show shows every
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time we talked about six flags, I think there's people
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from all over the spectrum. Right it's very park dependent,
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as you know, who's upgraded their food and who's upgraded this,
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and how this is running and how that is not
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running and all this stuff. So I think maybe that's
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to be determined. But to me, that's the biggest thing
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is the opportunity cost. Your opportunity cost here is that
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you have lost some of your wiggle room because presumably
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because the plan did not go accord to plan as
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fast as they had intended, Like the revenue they were
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supposed to get in from this past few four was
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did not get quite to what they needed, and so
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now they're having to do debt restructuring, which reduces their
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future potential for experiments and for I mean, everything has
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to work well now. And so the question is, like
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with the new CEO and the new all this stuff
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and everything, is everyone going to be able to follow
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the plan or not? And I guess we'll just have
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to wait and see.
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Yeah, you know again, six Flags has going back in history.
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Six Flags has done this before. They did a massive expansion.
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It wasn't a merger, but they did a massive expansion
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where they bought a ton of parks and they expanded
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too quickly, and their goal was to try to unify,
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to try to unify the parks a bit, because they
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bought a lot of family owned parks and they bought
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a lot of smaller parks and in many cases, you know,
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to kind of reinforce what Philip was saying about it
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goes park to park. If you visit one six Flags
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park and then travel to this next state over and
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visit another six Flags park, you will have a very
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different experience because the parks are still very much operated independently,
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or appear from a guest standpoint to be operated independently.
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And my guess is that this extra time that they've
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basically bought, they've lost wiggle room, but they've bought time,
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is what it. You know, kind of yep, that's it.
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That's what it boils down to. But in this extra time,
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if I were sitting in John Riley's position, which thank
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god I'm not because I'm not nearly as smart as
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John is, But if I were sitting in his position,
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the first thing I would do is say, great, let's
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take these Let's take this time to make certain that
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we are as efficient not just in each park, but
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across the spectrum of parks, so that we can find
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those savings of scale, so that we can find those
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best practices. And people in the parks are not going
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to like it, because it's going to mean they're not
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gonna be able to do with things the way they've
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always done them. It also means that maybe, you know, guests,
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some of guests favorite things may be value engineered away
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because there's only one park in the system that does it.
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You know, it's sort of like trying to write size
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a restaurant menu. You know, if you've got if you've
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got a menu item that's that uses something that is
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not an ingredient that's not used in anything else, that
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menu item usually gets removed when you start when push
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comes to show, when it comes to financial well being,
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if they could improve they come up with a plan
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to improve culinary for example, across all the parks and
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roll it out to all of the parks with an
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efficiency that saves them money. That would be great, but
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they didn't have time to do that when their debts
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came to in twenty seven.
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Yep, yep. So the other news this week that we
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got from six Flags, there's two other news stories six
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Flags Texas. I mean, this should be an obvious one,
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but they determined not to exercise the call option for
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six Flags Texas, you know, to take any more of
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the ownership of that park. And I think we know why.
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I mean, they just there's not they don't have the
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capital basically, But the who was it? The John Riley,
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He said this was a difficult and deliberate decision. Six
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Flags over Texas is a foundational park in our system
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and a prized asset within our portfolio. While the contractual
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terms do not currently align with our capital allocation priorities,
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we remain deeply committed to the long term success of
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the park and believe it has a bright future. As
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part of the Six Slaves portfolio.
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So so in other words, we would have done it
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if we had the money.
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That's right, Yeah, yeah, so it's it's a non story,
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but just to put it out there so everyone well, but.
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Again that's another one of those decisions that are going
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to have to be made. Tough decisions are going to
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have to be made that you know, are just gonna
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keep the park afloat.
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We all hope, yep. And then I think the sexiest
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news to which everybody else was talking about from last
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week is that there's.
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A new there's a new six Flags park somewhere, isn't there.
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Philip, Yes, there is, indeed so over the holidays because
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it opened on New Year's Eve, six Flags Kidious City
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opened up. And of course this is the home to
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the new, biggest, fastest, whatever, new new crazy coaster that
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everybody is gaga about, which I think I would never
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ride because I have been in the canyon looked at
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it and looks terrifying.
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I can't wait, I can't wait. Now. The funny thing
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is now, the funny thing is I wrote. So I've written,
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00:15:33.799 --> 00:15:37.000
I've written Formula Rosa, which is currently or was currently
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the fastest and I only wrote it twice because I
306
00:15:42.279 --> 00:15:47.039
kind of browned out each time. But but I would definitely,
307
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I would definitely ride Falcon's Flight, Is that right? I
308
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don't remember big as Coaster is what I kept calling it.
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But but yeah, Philip and I both had a chance
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to do a site tour during the Iyappa Summit trade
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summit there and I am still so sad that we
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didn't get chest take any photos. Yep, because just to
313
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see it running now, it's like, Yep, that's what I reasoned.
314
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That's what I imagined. Yeah, having walked around that Six Flags park,
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it is. It is something else, and it's just almost
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the ambiance of just been inside a canyon. It's like,
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00:16:29.159 --> 00:16:31.559
imagine they built a theme park at the bottom of
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the Grand Canyon and then the roller coaster is like
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on the canyon wall.
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Well, and it sort of has It reminded me and
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you're gonna laugh, but it reminded me of what they
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tried to do with cars Land to make it look
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like you were in a canyon.
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Ye, only this is a real canyon, you know, this
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is this is a real mountain and the scale is
326
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just uncomprehensible really that it's just like this is insane,
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like the but yeah, so anyway, it's a great locations,
328
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great park. What I thought was the most interesting is
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during the live stream opening that I believe it was
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the park president or the park manager of that park.
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Basically he just said he made the distinction between this
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park and the American parks basically, and I felt like
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this was a weird thing to say, but he said,
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the Six Flag parks in North America, I would classify
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them as an amusement park. This will be the first
336
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I think, fully integrated theme park. What we mean by
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that is the minute you come into the park, the music,
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the theming, the facades, attractions, the employee uniform, everything will
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be themed and will create that more immersive environment which
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you just won't find at another Six Flags park to
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this level. So I don't disagree with that. I just
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think it's interesting that they're making the distinction finally between
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an amusement park and a theme park in the Six
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Flags chain. And I don't know, I think maybe Knots
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might be the closest Knots or Cedar, you know, some
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of the ones that might be the closest to a
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theme park, But in terms of he's right in terms
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of thematic design and integration all that. I mean when
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Scott and I when we were walking through the entryway
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even and just the entrance and just the themed lands,
351
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the theming, the music. I mean, it's like it's yeah,
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it's got all that it is. It is a theme park.
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It is, And I don't know if it's the only
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one in their chain, like like like the guy is arguing,
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I think not, Like I said that, those two come
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to mind that have some great thematic elements, but maybe
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because this one is so cohesive. It really is all,
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you know, designed to make sense, or you have a hub,
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you have an arrival experience, like everything everything flows together.
360
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But well, and it's interesting because there are certain parks
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that are in the Six Flags chain that were theme
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parks and then became amusement parks. Six Flags Great America
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and Gurney, Illinois when it was opened by Marriott, was
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very much a theme park. Each of the different lands.
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I know because I'm old enough I was there when
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it opened. But each of the different lands, the employees,
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the cast members had completely different uniforms depending on which
368
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land they were in. The food offerings were different depending
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on which land you were in. All of the architecture
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was different depending on which land you were in, and
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you know, I was just I just recently went back
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there last last year, and it was interesting to me
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to see the bones of the original intent of a
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theme park with all of a sudden, rekshasa gigantic roller
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coaster just sort of plopped down like it landed like
376
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a giant alien spacecraft landed in the middle of another place.
377
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And I mean, it makes sense because they need to
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use the land intelligently. That park is somewhat landlocked unless
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they want to start eating up their parking lot, which
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they probably could because I don't think they fill it
381
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much anymore. But it's it's interesting because they've taken and
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what was intended to be a themed experience a theme
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park and have turned it into more of an amusement park.
384
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And quite honestly, I saw the same thing the last
385
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time I was in Knots and I haven't been there
386
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in many years, so I don't know whether that's still
387
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the case, but there are The first sign is that
388
00:20:17.880 --> 00:20:20.240
you can you can walk into a shop and buy
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the exact same thing no matter which land you're in.
390
00:20:23.599 --> 00:20:26.200
That's where you can get exactly the same food no
391
00:20:26.240 --> 00:20:28.720
matter which land you happen to be in. That's the
392
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amusement park versus the theme park. Another queue is the
393
00:20:35.400 --> 00:20:38.039
when they shift. I mean, when I first started working
394
00:20:38.079 --> 00:20:43.200
at Bush Gardens in Williamsburg, each area, each country in Williamsburg,
395
00:20:43.759 --> 00:20:48.000
the employees, the cast members had their own uniforms and
396
00:20:48.079 --> 00:20:50.440
they were specific to that area. So if someone got
397
00:20:50.480 --> 00:20:54.440
pulled from Hastings to New France, they had to go
398
00:20:54.559 --> 00:20:57.599
up to wardrobe, change their uniform and go back to
399
00:20:57.640 --> 00:21:01.279
the other. So running a theme park, it has some
400
00:21:01.799 --> 00:21:08.039
ch howellinges operationally in order to maintain that unique theming.
401
00:21:08.640 --> 00:21:12.279
But and that's why so often they will shift from
402
00:21:12.880 --> 00:21:15.200
theme park to amusement park. I mean, quite honestly, the
403
00:21:15.279 --> 00:21:20.160
term theme park didn't exist until Disney, and you know,
404
00:21:20.200 --> 00:21:22.960
Disney was the one who truly dove in and then
405
00:21:22.960 --> 00:21:25.759
everybody else pretended to be a theme park. But we're
406
00:21:25.759 --> 00:21:28.960
really just an amusement park that had areas called different things. Yep.
407
00:21:29.039 --> 00:21:32.319
So that that is really interesting, those distinctions you mentioned,
408
00:21:32.359 --> 00:21:35.200
because I think that's exactly what we saw, or that's
409
00:21:35.200 --> 00:21:36.400
what was explained to us.
410
00:21:36.880 --> 00:21:39.759
I mean, obviously we didn't see an operation, so.
411
00:21:39.920 --> 00:21:42.319
We didn't see an operation, but what was explained to
412
00:21:42.400 --> 00:21:45.680
us was exactly that where they had different restaurants that
413
00:21:45.720 --> 00:21:48.200
were serving different cuisines that kind of fit into the
414
00:21:48.240 --> 00:21:51.480
different areas. And we didn't see the costumes or any
415
00:21:51.519 --> 00:21:54.839
of the cast elements yet, but but I mean you
416
00:21:55.079 --> 00:21:59.799
could see the demarcation in the environment and in the
417
00:21:59.839 --> 00:22:02.240
food that was going to be offered there in the
418
00:22:02.279 --> 00:22:04.279
different areas, so it was much more themeing.
419
00:22:04.319 --> 00:22:08.720
But well and just you know, also in the Middle
420
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East on Yas Island, all of those are theme parks.
421
00:22:12.400 --> 00:22:17.279
They have different lands which have different culinary merchandise offerings,
422
00:22:17.319 --> 00:22:20.839
different costuming, different architecture, different styles of rides, different types
423
00:22:20.880 --> 00:22:24.640
of experiences in each of the each of the different areas.
424
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That's true Sea World, Warner Brothers, even Ferrari World, the
425
00:22:28.319 --> 00:22:33.640
realms are a little bit less easily defined, but you know,
426
00:22:33.799 --> 00:22:38.680
you they're the wonderful pasta restaurant is in the section
427
00:22:38.720 --> 00:22:41.720
of the park that's talking about the history of the company,
428
00:22:41.880 --> 00:22:48.000
which takes you back to Italy. So Mama rosas good stuff.
429
00:22:49.039 --> 00:22:53.680
Well, so, anyway, that was the big news about the opening,
430
00:22:53.720 --> 00:22:56.039
and now it's been in it's through its first week
431
00:22:56.079 --> 00:22:57.839
and after the holiday, so I think more people are
432
00:22:57.839 --> 00:22:59.480
paying attention to it, and.
433
00:23:01.160 --> 00:23:01.759
I'm just curious.
434
00:23:01.799 --> 00:23:04.079
I'm sorry, Phil, go ahead, I was gonna say, just
435
00:23:04.079 --> 00:23:07.880
to be clear, because I think this that when we're
436
00:23:07.920 --> 00:23:09.720
talking about the debt and we're all this like nonsense
437
00:23:09.759 --> 00:23:12.480
and everything about their expansion and all these plans, like
438
00:23:13.039 --> 00:23:17.079
they don't own six Flags Kadia, Like six Flags is
439
00:23:17.119 --> 00:23:20.079
only in a operating agreement, so they are getting paid
440
00:23:20.960 --> 00:23:23.759
to operate it and they're getting paid for the name,
441
00:23:23.839 --> 00:23:28.839
but it wasn't financed by them, and so it's it's
442
00:23:28.880 --> 00:23:31.039
it's kind of funny if you think about it in
443
00:23:31.079 --> 00:23:34.319
that way, where you're like, well, you have the six
444
00:23:34.319 --> 00:23:37.000
Flags themselves saying this is their best park, but like
445
00:23:37.160 --> 00:23:39.960
they didn't. They don't own it, they didn't pay for it,
446
00:23:40.039 --> 00:23:43.440
like and you could say almost make the counter argument
447
00:23:43.440 --> 00:23:46.880
of like they probably couldn't have afforded to make this
448
00:23:47.000 --> 00:23:49.079
park because of the level of theme.
449
00:23:50.920 --> 00:23:54.359
No, but again that's true throughout the Middle East. You know,
450
00:23:54.880 --> 00:23:56.720
any of the any of the parks that you see
451
00:23:56.720 --> 00:24:02.440
coming into really anywhere in the midd least, those aren't. Sorry,
452
00:24:02.559 --> 00:24:05.400
the new Disney Park on Yas Island that's owned by
453
00:24:05.400 --> 00:24:09.920
Morale or we'll be owned by Morale SeaWorld, Warner Brothers
454
00:24:09.920 --> 00:24:15.359
World Aquarabia, which doesn't really have any parks elsewhere, but
455
00:24:17.240 --> 00:24:22.680
they're notorious. They're notorious for leasing brands and taking the
456
00:24:22.759 --> 00:24:28.559
operating expertise or experience that these brands have. They also
457
00:24:28.599 --> 00:24:31.119
have name recognition, and if their goal is to try
458
00:24:31.119 --> 00:24:34.400
to bring people in from outside the country, they are
459
00:24:34.599 --> 00:24:39.559
going to be much more eager to visit the best
460
00:24:39.559 --> 00:24:42.480
six Flags park in the world than to visit this
461
00:24:42.559 --> 00:24:44.200
brand new theme park that has a really big roller
462
00:24:44.200 --> 00:24:46.000
coaster in Saudi Arabia. That's right, So.
463
00:24:46.640 --> 00:24:49.240
Yeah, we are. I think I talked about that in
464
00:24:49.279 --> 00:24:52.400
our Green Tag newsletter a few weeks ago about the
465
00:24:52.480 --> 00:24:55.960
concept that this is a little bit of a different model.
466
00:24:56.079 --> 00:24:58.799
I mean, on the show, we talked about the idea
467
00:24:58.839 --> 00:25:03.519
where this it's going to be a new way of
468
00:25:03.559 --> 00:25:06.720
doing the parks, but you kind of think about you
469
00:25:06.720 --> 00:25:10.640
can also extend that and think, well, it's Kadia City
470
00:25:10.720 --> 00:25:14.039
is shaping up to be a similar model to Yes Island,
471
00:25:14.519 --> 00:25:18.839
and in both models, it's very much the Walt Disney
472
00:25:18.880 --> 00:25:23.279
World original concept, but on a larger scale because you
473
00:25:23.359 --> 00:25:26.240
have different parks that are different licenses. Like you have
474
00:25:26.319 --> 00:25:28.119
ac World, you have a Warner Brothers. You have these
475
00:25:28.160 --> 00:25:30.880
things that are different licenses, but they are owned by
476
00:25:30.920 --> 00:25:34.400
the same government entity. So it creates a bubble that
477
00:25:34.519 --> 00:25:37.279
is almost like the house wins, but in this case,
478
00:25:37.319 --> 00:25:40.799
the house is like the government and the tourism sector wins.
479
00:25:40.960 --> 00:25:43.279
No matter what you do in that tourism sector, they
480
00:25:43.400 --> 00:25:46.480
kind of win on that, and so you're it's but
481
00:25:46.599 --> 00:25:49.319
in a way it creates less of that kind of
482
00:25:49.359 --> 00:25:54.640
like local competition, but the competition is between neighboring countries. Right,
483
00:25:54.680 --> 00:26:00.000
So now you have Kidia City and Universal announced potentially
484
00:26:00.119 --> 00:26:02.440
going into Katia City. We talked about that as well,
485
00:26:02.480 --> 00:26:05.440
but then especially going into this region. But that would
486
00:26:05.480 --> 00:26:08.000
be the same type of agreement as here with six Flags,
487
00:26:08.039 --> 00:26:11.240
like where it would be a license. It would not
488
00:26:11.319 --> 00:26:13.839
be owned by Universal. We do not know who would
489
00:26:13.880 --> 00:26:16.640
operate it, but it's the same concept where now you
490
00:26:16.720 --> 00:26:20.279
have whole governments, you know. So it's kind of like
491
00:26:20.319 --> 00:26:22.279
I think in our newsletter, I was like, imagine if
492
00:26:22.319 --> 00:26:25.240
like all of Orlando was kind of operated by the
493
00:26:25.359 --> 00:26:29.039
US government and then Tampa was like Canada, and so
494
00:26:29.200 --> 00:26:33.200
you have countries that are investing and competing. You don't
495
00:26:33.200 --> 00:26:36.480
have like local businesses really as much. And so is
496
00:26:36.519 --> 00:26:39.960
that better or worse for competition? I don't know. I
497
00:26:39.960 --> 00:26:40.839
don't think we will know.
498
00:26:41.200 --> 00:26:43.960
Well, it's kind of comparing apples and artworks though, because.
499
00:26:43.720 --> 00:26:46.319
That's right, that's exactly. It's a whole new system. It's
500
00:26:46.319 --> 00:26:47.720
a way, yeah.
501
00:26:47.920 --> 00:26:50.200
I mean, you know, if if the United States all
502
00:26:50.240 --> 00:26:54.480
of a sudden were to say, say, okay, we're we're
503
00:26:54.519 --> 00:26:58.240
interested in expanding the attractions industry, so we are going
504
00:26:58.279 --> 00:27:02.279
to buy and fund all of all of the theme
505
00:27:02.359 --> 00:27:05.720
all of the Disney parks, all of the Six Flags parks,
506
00:27:05.759 --> 00:27:09.559
all of the there's another big player, all the Universal
507
00:27:09.559 --> 00:27:12.039
parks in the United States. We are going to own
508
00:27:12.079 --> 00:27:15.279
and operate all of them in this country. People would
509
00:27:15.319 --> 00:27:20.240
have a coronary because, you know, the word socialism would
510
00:27:20.279 --> 00:27:22.759
be thrown around, the word monopoly would be thrown around.
511
00:27:23.599 --> 00:27:28.440
But that is the business model in the Middle East,51200:27:28.640 --> 00:27:32.279
which you know, you can chastise it all you want.51300:27:32.960 --> 00:27:35.759
I know, every time I talk positively about anything in51400:27:35.799 --> 00:27:40.359
the Middle East, I usually get some flack about how51500:27:40.680 --> 00:27:43.440
wrong it is and how terrible it is. And my51600:27:43.559 --> 00:27:46.759
only recommendation is go there, experience it yourself, and then51700:27:47.160 --> 00:27:52.480
tell me. But the idea here is it's a different51800:27:52.519 --> 00:27:56.279
model that has the potential of being very successful. I mean,51900:27:56.599 --> 00:27:58.920
as Philip mentioned Walt disney World, the whole purpose there52000:27:59.039 --> 00:28:01.559
was every time you spent went into Disney's pocket.52100:28:01.759 --> 00:28:02.960
That house always wins.52200:28:02.960 --> 00:28:05.200
The house always wins. And you know people who have52300:28:05.279 --> 00:28:09.759
taken a Mer's bus from Orlando Airport to the that52400:28:09.759 --> 00:28:11.640
that mirror stands for mouse hears. I mean it's owned52500:28:11.680 --> 00:28:15.599
by Disney, so that money goes into Disney's pocket. That52600:28:15.759 --> 00:28:18.680
was the business model. It's no different than Yes Island52700:28:19.039 --> 00:28:21.720
or Kuldi a city. It's right. The money, the money52800:28:21.759 --> 00:28:23.480
you spend while you're there, The money that you spend52900:28:23.519 --> 00:28:25.279
on the hotel which has a different name than theme53000:28:25.279 --> 00:28:26.799
park that you go to, which has a different name,53100:28:26.799 --> 00:28:28.319
than the golf course which has a different name, than53200:28:28.359 --> 00:28:30.319
the concert venue which has a different name than the53300:28:30.359 --> 00:28:34.759
formula race formula on racetrack that you that's there or53400:28:34.799 --> 00:28:39.279
will be there, all goes to the same the same entity.53500:28:39.599 --> 00:28:44.640
It all goes back into an entity that is representing53600:28:44.759 --> 00:28:47.759
the government. That's right, And by representing I mean owns53700:28:47.799 --> 00:28:50.799
owned by But yeah, so, and.53800:28:51.359 --> 00:28:54.960
I think it's it's all to do a diversification as well.53900:28:55.000 --> 00:28:57.119
I mean, the whole thing, the whole reason this is54000:28:57.119 --> 00:28:59.319
happening is because they're diverse flying away from oil. But54100:28:59.519 --> 00:29:02.079
the same and that's the same reason that Universal is54200:29:02.079 --> 00:29:04.079
making all the moves they're moving. They're diverse, flying away54300:29:04.079 --> 00:29:09.079
from their loss of cable assets. So it's it's all54400:29:09.079 --> 00:29:13.079
been anyway. The only thing last year to close off.54500:29:13.119 --> 00:29:17.279
There was a comment on last week's episode about we54600:29:17.319 --> 00:29:21.319
talked about the key shaped economy last week and a54700:29:21.400 --> 00:29:24.920
few folks were talking about how they see people still54800:29:24.920 --> 00:29:28.440
spending money, so they're not sure about that. And again54900:29:29.680 --> 00:29:33.319
our disclaimer not financial et cetera. From my understanding, though,55000:29:33.359 --> 00:29:36.079
what the situation is is that Americans are just taking55100:29:36.119 --> 00:29:40.079
more debt. We have we have record high debts in55200:29:40.519 --> 00:29:43.200
personal debt. Credit cards are showing up all this it's55300:29:43.240 --> 00:29:46.000
the expansion of buy now, pay later. All these elements55400:29:46.039 --> 00:29:48.400
are making it easier for people to take personal debt55500:29:48.480 --> 00:29:50.920
and push it up. And so that's my understanding is55600:29:50.960 --> 00:29:53.240
if if the person can't afford it, then they just55700:29:53.279 --> 00:29:56.079
make the decision to put like just like six lights,55800:29:56.119 --> 00:29:59.119
get more, get another credit card, buy now, pay later,55900:29:59.279 --> 00:30:02.519
do a different agreement for a loan or something to56000:30:02.519 --> 00:30:04.720
push that money out a little bit, and that's how56100:30:04.759 --> 00:30:08.359
they're affording that some people. That's how some people are56200:30:08.400 --> 00:30:11.599
affording their at vacations.56300:30:12.039 --> 00:30:14.279
Sounds like sounds like the nineteen early nineteen nineties all56400:30:14.319 --> 00:30:19.480
over again. It's funny because you know, everybody thinks, oh,56500:30:19.519 --> 00:30:21.160
this is so new, that there's so much people who56600:30:21.200 --> 00:30:23.920
are using debt to pay debt, pay off debt. No,56700:30:24.039 --> 00:30:27.200
it's cyclical. It's clical. It's you know, it is. It56800:30:27.279 --> 00:30:31.240
is a non sustainable system. Just by its very nature.56900:30:31.279 --> 00:30:35.839
It is an unsustainable system. So it's going to crash.57000:30:36.079 --> 00:30:38.039
It's going to come crashing down on itself, and people57100:30:38.039 --> 00:30:39.319
are going to get hurt, and there's going to be57200:30:39.319 --> 00:30:41.559
some sort of bailout and then everybody's gonna be careful57300:30:41.559 --> 00:30:43.319
for a while, and then all of a sudden, you know,57400:30:43.400 --> 00:30:47.519
things will get tough again and it'll start all over. So, yeah,57500:30:47.640 --> 00:30:51.799
it's nothing just like us next week, that's right, that's right.57600:30:51.839 --> 00:30:54.440
Oh you know why, because we're out of time. Normally57700:30:54.440 --> 00:30:55.799
I'm the one who keeps track of the time, and57800:30:55.839 --> 00:30:59.480
I didn't, So thank you for that reminder, Philip. I57900:30:59.480 --> 00:31:05.240
appreciate that. Until next week, once again, everyone, please please subscribe.58000:31:05.599 --> 00:31:06.880
Yes, please subscribe to our YouTube.58100:31:06.880 --> 00:31:09.240
Oh my god, rib to our YouTube. Please please please,58200:31:10.000 --> 00:31:11.960
And again, this is not because Philip and I want58300:31:12.000 --> 00:31:15.400
to you know, we become multi billionaires and live on58400:31:15.440 --> 00:31:17.200
a private island somewhere. This is just so we can58500:31:17.240 --> 00:31:19.920
keep doing the show. We have to find you know,58600:31:20.000 --> 00:31:22.480
we have to make certain that the finances that are58700:31:22.480 --> 00:31:26.039
needed to keep the show going are there. And by subscribing,58800:31:26.200 --> 00:31:28.240
it doesn't cost you a dime, but it does help58900:31:28.400 --> 00:31:32.200
us with monetization. So please make sure that you subscribe.59000:31:32.759 --> 00:31:34.960
If you've got multiple emails, subscribe under each one. I59100:31:35.000 --> 00:31:38.240
don't care. Yeah, it doesn't really matter. I'll cheat the system.59200:31:38.359 --> 00:31:44.599
It's okay. Oh gosh, don't tell YouTube anyway. On behalf59300:31:44.640 --> 00:31:47.759
of Philip and myself Scott Swinson. This is Green Tak59400:31:47.799 --> 00:31:49.880
Theme Barkin thirty and we will see you again next59500:31:49.920 --> 00:31:50.160
week
