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Alton Towers for Sale?

A

Ash

TS Member
4fd70e953f6749255d1ed608787197d1.jpg


New T&C added back in July…

Also added to other Merlin parks.

(Courtesy of the European Coaster Club)
 
Ash said:
4fd70e953f6749255d1ed608787197d1.jpg


New T&C added back in July…

Also added to other Merlin parks.

(Courtesy of the European Coaster Club)
Click to expand...
This isn't news, it was added in August 2024 and we had this discussion then. I even, very graciously, wrote a script draft for all of the vloggers at the time:
GooseOnTheLoose said:
WHICH MERLIN THEME PARK COULD BE CLOSING FOREVER?

*Blurred photo of the Alton Towers entrance and question mark in thumbnail*

Vlog Script:

Host: Hello and welcome to Themed Parks Globally! Today we're about to dive into some serious theme park industry news. Merlin Entertainments, the behemoth behind Alton Towers, Thorpe Park, Legoland and a whole bunch of other theme parks and world wide attractions, has just dropped a bombshell in an email sent out to passholders today.

Now, I'm talking about more than just a new rollercoaster here. We're talking about a potential game-changer for the entire theme park industry. Merlin has basically given itself carte blanche to do whatever it wants with its parks.

Let's break the email down They've expanded their powers to remove "Attractions" from the Platinum Pass scheme. Now, when they say "Attractions," they're not just talking about that lame kiddie ride in the corner. This could mean anything from a single coaster to an entire park, or midway. They could close down Alton Towers tomorrow, or even Madame Tussaud's.

It's like they're playing Monopoly, but with our favorite theme parks as the properties. They can buy, sell, or even demolish them at will. They can remove them entirely from your pass. And the worst part? They can do it for any reason they want. Technical difficulties? Sure. Safety concerns? Absolutely. Want to build a new hotel? Well, maybe an old park has to go first.

This is a massive power grab and shows that Merlin has too much power. It's a wake-up call for all of us. We need to cherish these parks now more than ever, maybe even make a sign and cancel our annual passes. Who knows what the future holds?

So, what do you think? Is this the beginning of the end for some of our beloved theme parks? Hit that like button, drop a comment, and remember... Always be riding!

[End screen with call to action to subscribe and like the video]
Click to expand...
 
None of the operators have never fully owned the land at Alton Towers.

It's very different from Chessington ownership
 
AltonLover123 said:
He’s quite right in that Merlin do not own the land at AT. They lease and operate it.
Click to expand...
1) He said "None of the operators have never fully owned the land at Alton Towers." - None have never literally means all have. His statement literally means that all of the operators have fully owned the land at Alton Towers, which is technically correct.

2) He probably meant that "None of the operators have ever fully owned the land at Alton Towers", which is incorrect. All of the operators of Alton Towers, as a theme park, have at one point owned the land. Merlin sold the land shortly after they acquired it, to fund the buyout of Tussauds, but they had to own it to sell it.
 
Further, the fact Merlin don’t own the land that Alton Towers sits on, doesn’t mean they cannot sell Alton Towers.

They own the brand, the rides, the lease to the land, the buildings, the hotels etc etc.

This narrative that leasing the land means they don’t ’own Alton Towers’ is false and frustrating given how often it comes up.
 
I have saw people say they used the Wayback Machine and it's been like this since July. And it's on e.g. Chessington's too.

In my opinion this is Merlin updating the TOS after spotting a gap in it when tending the sale of the Blackpool attractions. Don't really think it means anything to do with any impending sale.
 
I mean, I wasn't far off...

PXL-20251120-210337130.jpg


Just about a year and a half too early.

GooseOnTheLoose said:
WHICH MERLIN THEME PARK COULD BE CLOSING FOREVER?

*Blurred photo of the Alton Towers entrance and question mark in thumbnail*

Vlog Script:

Host: Hello and welcome to Themed Parks Globally! Today we're about to dive into some serious theme park industry news. Merlin Entertainments, the behemoth behind Alton Towers, Thorpe Park, Legoland and a whole bunch of other theme parks and world wide attractions, has just dropped a bombshell in an email sent out to passholders today.

Now, I'm talking about more than just a new rollercoaster here. We're talking about a potential game-changer for the entire theme park industry. Merlin has basically given itself carte blanche to do whatever it wants with its parks.

Let's break the email down They've expanded their powers to remove "Attractions" from the Platinum Pass scheme. Now, when they say "Attractions," they're not just talking about that lame kiddie ride in the corner. This could mean anything from a single coaster to an entire park, or midway. They could close down Alton Towers tomorrow, or even Madame Tussaud's.

It's like they're playing Monopoly, but with our favorite theme parks as the properties. They can buy, sell, or even demolish them at will. They can remove them entirely from your pass. And the worst part? They can do it for any reason they want. Technical difficulties? Sure. Safety concerns? Absolutely. Want to build a new hotel? Well, maybe an old park has to go first.

This is a massive power grab and shows that Merlin has too much power. It's a wake-up call for all of us. We need to cherish these parks now more than ever, maybe even make a sign and cancel our annual passes. Who knows what the future holds?

So, what do you think? Is this the beginning of the end for some of our beloved theme parks? Hit that like button, drop a comment, and remember... Always be riding!

[End screen with call to action to subscribe and like the video]
Click to expand...
 
I wouldn't read too much into these T&C's or YouTubers getting over excited, but...

It sounds like Melin needs to become a much tighter model. The days of buying more parks on ever more debt and expanding like no tomorrow are over for Merlin (and many other businesses that used this tactic). Being a public company seemed to make everything worse, and now they have ended up in this messy buyout situation, with increasing interest payments on their debt since COVID.

If the situation is really that bad for them. It does make sense to sell towers and focus on the London Cluster. Plenty of people will still buy Merlin passes, and the Merlin pass probably makes more sense to be a London cluster-style pass anyway (in a business sense). With Universeal on the horizon, it makes business sense to plough everything into Lego, Thorpe, and Chessington.

I think it will all come down to whether anyone would want it for what Merlin would like to sell it for. Like they tried to dump sealife, but they didn't spark much interest in anyone, really. If someone like Efteling wanted it, then I reckon they would consider a sale, but I suspect it has to be worth their while. It wouldn't surprise me if they were secretly fishing for interest in Towers.

I think the Merlin haters, though (I'm not saying I'm a fanatic fan), will be disappointed if they expect millions of pounds poured into the park suddenly if it's sold.
 
GooseOnTheLoose said:
I mean, I wasn't far off...

PXL-20251120-210337130.jpg


Just about a year and a half too early.
Click to expand...
As well as Digital Dan, Your Experience Guide and Theme Park Worldwide have also recently posted videos on the same subject - see links below.

It's interesting that Shawn Shanbrooke thinks that Merlin's decline began when they focused too heavily on Sea Life, The Dungeons, and overseas attractions, instead of investing in their British theme parks instead.


From: https://www.youtube.com/watch?v=cfkzmW3-pAs



From: https://www.youtube.com/watch?v=a59aMCj1-G8
 
Secret Weapon said:
As well as Digital Dan, Your Experience Guide and Theme Park Worldwide have also recently posted videos on the same subject - see links below.

It's interesting that Shawn Shanbrooke thinks that Merlin's decline began when they focused too heavily on Sea Life, The Dungeons, and overseas attractions, instead of investing in their British theme parks instead.


From: https://www.youtube.com/watch?v=cfkzmW3-pAs



From: https://www.youtube.com/watch?v=a59aMCj1-G8
Click to expand...

I think it’s reasonable to assume that Towers is in the Market but then I suspect all of their assets are, Merlin seem to need cash quick and selling of a “Crown Jewel” would certainly do that. But the complications with the lease, not to mention how many visitors are attracted via the Merlin pass would. The contracts for F&B, cleaning etc that would either have to be settled or taken on by new owners.
Make this a very tricky one to negotiate and get the required cash. I would have thought Thorpe or Chessington might be more attractive or the Legoland parks in total.
IMHO it’s not so much about who would buy it, it’s what are they buying.
 
I get that these guys make their money from YouTube and they need to attract views but this is lazy.

Merlin’s could sell anything they want whenever they want but I hardly think a change in T&C’s that occurred last year is very indicative.
 
Secret Weapon said:
As well as Digital Dan, Your Experience Guide and Theme Park Worldwide have also recently posted videos on the same subject - see links below.

It's interesting that Shawn Shanbrooke thinks that Merlin's decline began when they focused too heavily on Sea Life, The Dungeons, and overseas attractions, instead of investing in their British theme parks instead.


From: https://www.youtube.com/watch?v=cfkzmW3-pAs



From: https://www.youtube.com/watch?v=a59aMCj1-G8
Click to expand...

I've written a post breaking down some of the key claims in one of these videos, over on the Merlin Entertainments thread. I've quoted it below because I don't particularly want to be duplicating discussions.
GooseOnTheLoose said:
I have sacrificed 37 minutes of my life, which I will never get back, to listen to a man read a Wikipedia page and misunderstand a balance sheet, so that you don't have to. I have even transcribed it, I am that committed (and sad).

The confidence with which The Relevant Media® (throwback for @Bowser) delivers misinformation never ceases to amaze me.

I'm happy to disassemble this "deep dive" before the misinformation becomes forum canon. I've broken it down into sections, making full use of the forum formatting options AND provided a TLDR for @rob666.

1. The "Refinancing is Bad" Fallacy​


No, Shawn. Refinancing is standard corporate treasury management. It is what every major company with debt does when bonds mature or when they want to secure better interest rates. It does not mean a company is in trouble; it means they are managing their long-term liabilities. If I remortgage my nest to get a better fixed rate, am I in financial ruin? No. I am being prudent.

2. The "Loss" Misunderstanding​

He cites the pre-tax loss of £492 million as evidence that the company is haemorrhaging cash. As I have explained in this thread previously, this loss was primarily driven by non-cash impairment charges.

Merlin wrote down the value of LEGOLAND New York and LEGOLAND Korea because they aren't performing as well as predicted. This is an accounting adjustment. It is a paper loss. It does not mean that £492 million of actual cash disappeared from the bank account. The operational cash flow (the actual money coming in from tickets and burgers) remains positive. Conflating an impairment charge with "running out of money" is economically illiterate.

3. The "Robbing Peter to Pay Paul" Myth​


This is the classic enthusiast fallacy. "If they hadn't built Legoland Korea, we'd have a new coaster at Alton Towers."

CapEx budgets are allocated based on growth potential. The UK market is mature; it has limited growth potential. The Asian and US markets are where the growth is. Investors (Kirkbi and Blackstone) provide capital specifically for growth projects. You do not secure billions in financing to re-tarmac a car park in Staffordshire, you secure it to open new markets.

The UK parks were not "underinvested" because the money was stolen for China. They received the level of investment appropriate for a mature, low growth asset.

4. The "Selling Alton Towers" Nonsense​


"There's been a lot of talk" because you (and other vloggers) keep starting the talk, Shawn.

All together now... Merlin does not own the land Alton Towers sits on. They sold the freehold years ago to LXi REIT (now LondonMetric). They own the ride hardware and hold a lease to operate the park. You cannot sell an asset you do not own. They could sell the lease (the right to operate it), but why would they sell their highest revenue generating UK theme park? It makes zero commercial sense. You don't sell the cash cow when you have debt to service. You milk it harder.

5. The S&P Downgrade​

He quotes the downgrade correctly but misunderstands the "insufficient liquidity" warning. Liquidity refers to access to cash and credit lines. Merlin has a Revolving Credit Facility (basically a massive overdraft) of hundreds of millions. The warning is a standard caveat about what could happen if they don't manage their debt pile, not a prediction that the bailiffs are coming next Tuesday.

TLDR​

A vlogger, who has never run anything larger than a YouTube channel, has confused standard corporate restructuring and accounting adjustments for an existential crisis.

Merlin is trimming fat, centralising operations and focussing on high yield investments. This is what grown up companies do. It is not a downfall. It is a pivot.

Now, if you'll excuse me, I need to attend The Feast of the Seven Salads.

🪿
Click to expand...
MartyP said:
Merlin seem to need cash quick
Click to expand...
Merlin aren't short of cash, not in the slightest. They are, however, a very debt laden company and there are legitimate concerns that if current unfavourable market trends continue, and Merlin's fortune's take a turn for the worse, they would struggle to meet the payments to service their debt.

If, in the extreme unlikelihood, Merlin did require financial assistance, their owners have incredibly deep pockets and would likely be of assistance.
 
Islander said:
Why on earth would Merlin look to sell the Legoland parks, their most profitable attractions?
Click to expand...

Because they have literally no money to afford anything so selling off the family jewels?

If I were a vlogger I'd claim that the Lego parks were the only valuable asset they had left.
 
Benzin said:
Because they have literally no money to afford anything so selling off the family jewels?

If I were a vlogger I'd claim that the Lego parks were the only valuable asset they had left.
Click to expand...

They have money, they have access to lots of money, they do have a lot of debt, therefore in the current climate there are potential headwinds.

Merlin could decide to divest themselves of some of their parks and Towers could be one of them but if they did it wouldn’t be because they lack money.
 
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