This, especially worth pointing out with all the other actions of Rockets ownership the last two seasons
LOL. Exactly! If my company come in and tell me, "We're going to defer your salary and pay you at the end of the year," I would start looking for a new job immediately or probably just quit immediately because that tells me the company doesn't have the cash flow to pay me on time. My company already do this with my bonus, they defer annual bonus payment 3 months after I am told what my annual bonus is, and that saves the company MILLIONS when you think of all the defer payments and interest they are collected from the deferred payment
For brevity and sanity, we ignore and make light of important contract details in all deals. We treat these payments as meaningless forgone conclusions and when it comes to things of this size it is anything but that in reality. Interest on $20M for 6 months is not an afterthought. The devil is in the details...damn right. I am not defending TF because I do not like him but from my experience all of these contract details are there for a reason and not some oblivious afterthought.
H-E-B found their new Kawhi: Camera pans on the backyard set with H-E-B hotdogs grilling in the background WB: I'm not wearing THAT Camera pans to the floor with an apron with dad joke slogan in front. WB: I'm not saying THAT corny *** ****! You're all out of your *** **** minds! WB walks off set. End Scene
How would Westbrook making endorsements have anything to do with whether or not Fertitta pays him like other similar NBA players, or asks Westbrook to defer receiving salary until later in the fiscal year? The two sets of actions have nothing to do with each other. Again, why would WB agree to this financial decision that harms him and doesn't make the team better, unless it was a condition of the trade? And if it was a condition of the trade, how bad is Fertitta's and the Rockets' cash flow and finances, that they felt it necessary to make a chintzy move like this? I mean, do other NBA teams do this sort of thing all of the time? And if so, then who?
Meanwhile warriors owners are already paying Draymond green 50% of his 100 million contract extension that doesn't even kick in till October of 2020.
I really don't like this guy. He's a clown. I gave it over a year and kept saying that he was just a new owner and doesn't know how it works but he really is just cheap as hell
This would be like our Employer asking us to defer our salary till the end of the fiscal year, but , HEY, you can side hustle with UBER or be a GIGGOLO and earn extra INCOME to make up for the interest loss from deferred payment layaway cheapass owner plan. Westbrook joined the Gig economy now because of mobster boss? NBA union ain't with that. Maybe that's why CP3 was REALLY traded. He wasn't down with going Jimmy Hoffa by the mobster boss.
Tilman had to borrow 1.5b to buy the Rockets. When those notes come due the Rockets will be screwed. Tilman has no liquid money. He has assets. He will be selling stuff, or maybe the Rockets will be put up for sale. So no matter what Tilman says, they will not go into Lux. Tax.Maybe if he quite giving millions of dollars to University of Houston, he could be a more likable owner. They are 1.6 m under the lux. Tax. They have 14 players signed. So forget Iggy. He can't afford him or any one else. The only way Tilman could get Westbrook was to backload his salary die to him.I thank when notes come due, he will sell the Rockets. Hopefully the next Owner will have deeper pockets.
Bullshit. We’re the ones that understand that when someone makes a highly leveraged purchase like this it’s likely bc they’re cash poor and more worried about servicing their debt/putting cash in their pocket than “doing whatever it takes” to field a title-contending team. Think about it - Tilman himself unnecessarily held up the trade for the sole reason of putting extra cash in his pocket. There was no benefit to the team whatsoever. There’s an obvious trend here and it has everything to do w our owner’s illiquidity driving basketball decisions to the detriment of the actual on the court product. My lifelong fandom to this team doesn’t have a damn thing to do w how the owner handles his personal finances. Apparently that’s not the case for you and the other savvy financial posters.
Still, I don’t understand what the Rockets missed out on bc of Tilman? Not paying Ariza 15mm? Making more trades last year for the sake of making a trade? I don’t think Tilman is cheap, he just isn’t willing to overpay for role players who don’t move the needle much and then on top of overpaying, getting hit with luxury tax on top of that? Only a buffoon would do that.
Dude, you don’t know wtf you are talking about. He’s a new owner. Pretty sure the NBA did their due diligence and thoroughly vetted him to make sure he could afford the team. Highly doubt the guy has financial problems. Also most billionaires don’t have billions of dollars in cash laying around. They also don’t touch their principal that they have invested in annuities and other sorts of securities. Most billionaires get loans for such purchases at an insanely favorable rate and use proceeds from cash flow from their assets to pay it back FYI...
