http://www.pjstar.com/article/20140724/BUSINESS/307249986 Professor Damodaran, of NYU, does some excellent work WRT to unique valuations - http://webcache.googleusercontent.c...ippervaluation.xlsx+&cd=6&hl=en&ct=clnk&gl=us Basis the asinine valuation Ballmer paid for the Clips (sans Dream, ha), the Rockets are "fundamentally" worth somewhere around 3.5-4.5 Billion depending on which multiple you apply, EBITDA or Operatingg Income. The trouble is, you know the Rockets attempt at launching a network failed. You know the extrinsic value you'd pay for an apple in Los Angeles is exponentially greater than what you'd pay for the same apple in Houston. All the relative valuation comps to the Clippers are only valid when we discuss intrinsic value, that is, what the Rox or Clips are worth on the basis of their business/operations. Simply put: The Clippers "Intrinsic" value was roughly $600 Million - $1 Billion. The Clippers "market" value, wound up being $2 Billion. The bridge from intrinsic to market is where the Rockets just won't attract the same premium the Clips did. That said, if the starting intrinsic value for Houston is, say, $1.5 Billion, then the market value premium only needs to be roughly 50% of the Clips market value to intrinsic value premium to arrive at the same $2 B number. If we're playing closest to the pin - $2.3 Billion, but nothing from 1.75-2.5 Billion would surprise me. Dear new owner, PLEASE PLEASE don't Drayton McSuck.
Agreed. I think we may see a lot more of this around sports. The TV deal bubbles are going to burst at some point in the near future.
My guess is somewhere right around the Clippers number might be a little lower or a little higher, but nothing near $4B some are talking about.
I wonder what Mr. Burns.. I mean Mr. Alexander plans to do with the money he gets from selling everything. He hasn't been this close to a Championship since the Hakeem days. There has to be something going on. He is selling everything except for that condo in Manhattan.
I think it depends on who's buying. Hypothetically, a group of Chinese investors would likely feel like they are at a disadvantage compared to other bidders (especially local ones) and could bid the price up. I don't think we will go for more than the Clippers, but it's certainly possible. I'll say around $2 billion.
I think somewhere around 2.5 Billion clippers were only valued at 500 million when they sold for 2 billion.
I think these number are pretty wacky but then I remember basketball is pretty global. Unlike baseball and football.
$2-2.25 billion Have a hard time seeing the Rockets going for a lot more than the Clippers..then again, hard to imagine a team more perfectly postioned than Houston.
2.5-3.0. I would say closer to 3.0. There will be bidders for this team. It isn't everyday an NBA team goes on sale, so you can be sure there rich dudes with money laying around willing to overspend.
Forbes valuations are based on revenue and profits. No consideration for exclusivity and ownership status. They said the clippers were worth 500 million when they sold for 2 billion. And that is with an owner completely unwilling to sell, someone like Les would have squeezed more.
Lol, never thought I'd see such prescient words on CF. Agree on the TV deal. The new CBA is a disaster looming for the NBA, and will likely trigger a lockout in the next 5-7 years when the networks realize they can't overpay for sports when people aren't paying exorbitant cable bills.
It means you should prepare for financial hard times. How exactly you should prepare is a tough call, but I would start by minimizing your debt burden. Cash may be a good thing to have as well when asset prices tank across the board.
Health condition or he really is tired and overstressed. Feigen let out that he was pretty involved in basketball decisions, more than many were aware. Not to mention before that TV deal bubble pops, he's going to have to pay hand over fist in money to CP3, Harden, possibly Melo, and then pay a nice luxury tax on top of all that.
I'd say about 1.5 billion... the Clippers situation isn't comparable because Balmer was just like F**k it and out bid everyone by far plus they are in LA
Hate seeing him go, great owner great franchise he's not cheap like people said and always trying to do the best and better for the franchise
