Assessing the Impact of Corey Sanders' Retirement on MGM Resorts' Leadership Continuity and Strategic Execution

The retirement of Corey Sanders, MGM Resorts International’s Chief Operating Officer (COO), marks a pivotal moment for the company as it navigates a critical phase of global expansion. Sanders, who has overseen the company’s operations for over 30 years, will step down on December 31, 2025, after a career defined by strategic acquisitions, regional expansions, and operational innovations [1]. His departure raises pressing questions about succession risk and operational stability, particularly as the company advances ambitious projects in Japan, Dubai, and New York. This analysis evaluates the implications of this leadership transition for MGM’s long-term strategy and investor confidence.

Leadership Continuity: A Delicate Transition

MGM Resorts has structured a gradual transition to mitigate disruption. Sanders will remain in his COO role until year-end 2025 and will serve as a senior advisor to the CEO until December 31, 2026, receiving a monthly salary of $25,000 and a potential bonus of up to $200,000 during this period [2]. This extended advisory role is a prudent measure, given Sanders’ deep institutional knowledge and his pivotal role in initiatives such as the acquisitions of Mirage Group and Mandalay Resort Group [1]. However, the lack of public details about the qualifications of the incoming COO introduces uncertainty. While the Nominating/Corporate Governance Committee typically evaluates candidates based on financial acumen, industry expertise, and leadership experience [3], the absence of transparency about the successor’s background could heighten investor skepticism.

The company plans to name a new COO “later this month” [1], but the timeline for this announcement remains unclear. A delay in appointing a successor could exacerbate operational risks, particularly as the company faces challenges such as declining visitation on the Las Vegas Strip and execution risks in its international projects [4]. For instance, the MGM Osaka integrated resort, slated to open in 2030, requires sustained strategic oversight to meet its projected $3.9 billion in first-year sales [5]. A leadership vacuum, even temporary, could disrupt the coordination of such complex ventures.

Operational Stability Amid Global Expansion

MGM Resorts’ global expansion strategy hinges on its ability to balance capital-intensive projects with operational efficiency. The company’s 2025 guidance includes over $150 million in EBITDA growth from digital and international segments [6], driven by initiatives like the BetMGM joint venture and the New York gaming license application [5]. These efforts demand a COO with expertise in both hospitality and digital transformation—a combination that Michael Evans, currently COO of MGM Hospitality, exemplifies. Evans’ background at Marriott International and his legal training suggest a strong foundation for managing cross-border regulatory challenges and operational scalability [7]. However, his current role is limited to hospitality, and it remains unclear whether he will assume the broader COO responsibilities or if a new hire will be brought in.

The risks of misalignment between the incoming COO’s experience and the company’s strategic priorities cannot be overstated. For example, the Dubai project, with an expected 2028 opening, requires navigating geopolitical and economic uncertainties, including potential shifts in U.S.-Middle East relations and global tourism trends [5]. A leader without prior experience in international development could struggle to manage these variables, potentially leading to cost overruns or delays. Similarly, the New York gaming license application, pending a December 2025 decision [5], demands a nuanced understanding of regulatory frameworks—a skill set that may not be evident from the current COO’s public profile.

Strategic Implications for Investors

For investors, the key concerns revolve around execution risk and the board’s ability to maintain momentum in global expansion. While the extended advisory role of Sanders provides a buffer, it also raises questions about the board’s confidence in the incoming leadership. The compensation structure for the advisory role—$25,000 monthly—suggests a focus on retaining strategic insights rather than operational control, which could signal a deliberate effort to avoid over-reliance on a single individual [2]. However, this approach may not fully address the need for a leader capable of driving innovation in digital platforms and AI-driven personalization, areas critical to MGM’s future competitiveness [5].

The company’s emphasis on “premium and luxury segments” [5] also introduces market risks. As global economic conditions remain volatile, demand for high-end hospitality and gaming services could fluctuate, testing the resilience of the new leadership’s strategies. A COO with a track record in cost optimization and revenue diversification will be essential to navigating these challenges.

Conclusion

Corey Sanders’ retirement represents both an opportunity and a challenge for MGM Resorts. The company’s deliberate transition plan, including an extended advisory role and a planned COO appointment, demonstrates awareness of the risks associated with leadership change. However, the lack of transparency about the successor’s qualifications and the complexity of the global projects underway underscore the need for vigilance. For investors, the coming months will be critical in assessing whether the board can identify a leader capable of sustaining the company’s strategic momentum. Until then, the interplay between operational stability and succession risk will remain a defining factor in evaluating MGM’s long-term prospects.

Source:
[1] Press Release Details, [https://investors.mgmresorts.com/investors/news-releases/press-release-details/2025/MGM-RESORTS-INTERNATIONAL-CHIEF-OPERATING-OFFICER-COREY-SANDERS-TO-RETIRE-AFTER-MORE-THAN-30-YEARS-OF-SERVICE/default.aspx]
[2] advisory pay set | MGM SEC Filing - Form 8-K, [https://www.stocktitan.net/sec-filings/MGM/8-k-mgm-resorts-international-reports-material-event-6d869131cb45.html]
[3] Nominating/Corporate Governance Committee Charter, [https://investors.mgmresorts.com/investors/governance/nominating-corporate-governance-committee-charter/default.aspx]
[4] Earnings call transcript: MGM Resorts beats Q2 2025, [https://www.investing.com/news/transcripts/earnings-call-transcript-mgm-resorts-beats-q2-2025-expectations-with-record-revenue-93CH-4161526]
[5] MGM Resorts International, [https://www.datainsightsmarket.com/companies/MGM]
[6] MGM Resorts Achieves Record Q2 2025 Revenues, [https://news.worldcasinodirectory.com/mgm-resorts-achieves-record-q2-2025-revenues-boosted-by-mgm-china-and-betmgm-119211]
[7] Michael Evans Named Chief Operating Officer for MGM Hospitality, [https://www.hotelnewsresource.com/articletest71932.html]