[ruh-oh] Restaurateur Tilman Fertitta Desperately Seeks Cash Infusion For His Hospitality Empire

Mattress Mack wouldn’t even be able to afford to pay team payroll for 1 year...people need to stop mentioning his name

 

That's how the current Warriors owner outbid Larry Ellison. They outbid Larry, then Larry tried to come back with a higher offer, but the owner wanted to sell quickly, so he closed all the bidding. Les probably wanted someone that was going to close the deal quickly, not some "real Billionaire" trying to negatiotate.

 

he's so screwed. Every single assets he owns have been hit because he never diversify his assets

 

Can we acquire Cash Considerations?

 

When it comes to dealing with Tilman, you're dealing with the mob.

Good luck getting rid of the dude.

 

Damn. Why couldn't Dell just have bought it in the first place.

 

I find the term 'good debt' and 'investment' very often misused. There is nothing wrong with following Rich Dad Poor Dad and Jordan Peterson, but there comes a point where you must evolve and move on to more advanced ideas and discussions.

Good debt is good debt ... until its not. Just like having 100 Billion dollars in assets is awesome ... until you wake up and find out your company is in shambles and its valued at a 1/4 of what it was yesterday, all while you leveraged 75% of your assets at its peak. For those of us who dont have our head buried in greed, we call that Broke-AF. The fact we value wealthy people based on their leveraged assets is ridiculous. Tilman was already ****ed before COVID19. COVID19 literally stopped his little empire dead in its tracks for at least 3 months. You dont recover from that. Just ask the captain on the Titanic.

Investment is another misused term. If I buy a 250k sports car and I wrap it around a telephone pole because of my arrogance but yet learn the errors of my ways; and go on to use the experience to better my endeavors and recoup those loses from lessons learned, I can call that an investment.
If I buy a sports team, piss off the staff, fans and a major contributor from a foreign market, that is not an investment. Tilman has single handily ****ed this team from day one, continuously. The guy is an arrogant moron. If Tilman doesnt sell, this team is a bottom feeder for the next decade. Ive been saying this since he has bought this team. Face it, Harden is gone. Morey is gone. There is no rebuilding. Just existing.

 

Houston Mattresses. Great mascot potential for home games, and, um, cheerleaders doing floor-bound or mattress-bound routines?

 

Tilman or Morey needs to speak up now because fans are concerned about next decade.

Spurs are good for 20 years, would be a good model for Morey/Tilman. They paid little luxury tax.

This is a good sign, Morey says he is planning to trade into a First and buy a second.

 

Assuming the report of Dell's attempt to purchase a 50% interest in the Rockets is true? If we are lucky, Fertitta will get so desperate that he'll offer to sell the entire team to Michael Dell at a "bargain price." Dell tends to take the long view. For the next year or two, the valuation of NBA teams has to be taking a major hit. Heck, they can't play games, some players, and some are stars, are infected. More may become infected down the road (we all hope not).

Dell, however, might believe that in, say, 3 years, if things approach being normal again, which we all hope is the case (we all hope it's a heck of a lot sooner than that!), his investment in the Rockets at what I assume is a significantly lower number that Tilman "paid" initially, will pay off big time. Plus, he gets to be an NBA team owner. That still means a lot, regardless of the pickle Tilman put himself in.

 

But he will buy everyone mattresses if the Astros win the world series

 

Michael Dell would have been the perfect owner. Sigh

 

There's no attempt of Michael Dell buying the Rockets

This is the same as Clutchfans wishing Mattress Mack or Slim Thug or Fiesta buying the Rockets

Only a Clutchfans fantasy

Oh let's throw in the Turkey Leg Hut buying the Rockets too
@Reeko

 

So, don’t sleep on Mac buying the team?

 

Golden Nugget — bonds & company profile

http://cbonds.com/organisations/emitent/90687

It has been quite a while since I have looked at bonds, so hoping that I have this correct.

Golden Nugget, 6.75% 15oct2024,

http://cbonds.com/emissions/issue/356887

1,345,000,000 USD

ACI *** (04/10/2020)
Coupon frequency 2 time(s) per year



Golden Nugget, 8.75% 1oct2025,

http://cbonds.com/emissions/issue/356843

670,000,000 USD

ACI *** (04/10/2020)
Coupon frequency 2 time(s) per year


Golden Nugget Bonds
...........................Interest Rate...........Interest
$1,345,000,000..........6.75%.............$90,787,500
..$670,000,000...........8.75%.............$58,625,000
--------------------------------------------------------------
$2,015,000,000...............................$149,412,500


If interest is paid twice annually and it was time to make the semi-annual payment, then Fertitta needed
to have $75 million available. The Cbonds web site suggested that more information is available with registration, but I saw no need to take a deeper dive at this point in time.




Here's How Tilman Fertitta Is Playing For The Houston Rockets

https://www.forbes.com/sites/mikeoz...-paying-for-the-houston-rockets/#37931cb445d5

Texas Billionaire Eyes $200 Million Payday in Loan-Market Frenzy

https://www.bloomberg.com/news/arti...eyes-200-million-payday-in-loan-market-frenzy

I have no idea on the status of the loan from Alexander to Fertitta. For now, I will go with the idea that the $200 million raised in late January 2020 was used to payoff Alexander. Only the bonds floated to buy the Rockets and the recent lifeline loan will be considered.


If he really did need the recent $250 million high interest loan for

* Interest payments on the Golden Nugget bonds

* Interest payments on some other loans

* Operating capital since March, April and May will be wrecked for just about all of his businesses.

then he is in deep trouble.


Even if life returns to somewhat normal in the summer, I would expect lean times in the middle and upper tiers of the hospitality industry for a while since quite a few people will be behind on regular bills and will have to be conservative with their discretionary spending.

Any other loans will have to be for another day when there is more information available.

Bonds & Lifeline Loan.....Interest Rate....... Interest

Bond -- $1,345,000,000 …......6.75% …....... $90,787,500
Bond -- $670,000,000 …....... .8.75% …....... $58,625,000
Loan -- $250,000,000 …........15.00% …....... $37,500,000
-----------------------------------------------------------------------
Total..$2,265,000,000.................................$186,912,500


About $3.6 million a week in interest in just the above.


https://www.espn.com/nba/story/_/id...arly-half-nba-lost-money-last-season-now-what

September 2017

It is doubtful that the Rockets will have a similar profit for the current season and next season, so things could get complicated for Fertitta. If things don't turn around quick enough and he has to seek another loan in late September to pay interest on the Golden Nugget bonds, then he might have a problem finding an accommodating lender.

 

I'll sleep on the Serta mattress or Simmons Beauty Rest if Mac has them on sale

 

This is why 99ers are pure
@Rocket River
The best Rockets fans in the history of the universe

 

It's not impossible that he could still become just that, if the report of his interest in buying a major share of the Rockets is true. I've largely stayed out of the "Fertitta being broke" speculation in the past outside of a few comments here and there because he had pissed me off. The man has always talked big, blustered, busy polishing his enormous ego. However, COVID-19 and it's impact on the NBA in general, and Tilman Fertitta in particular, changes everything, in my opinion.

As others have pointed out, Tilman's "empire" is based on exactly the businesses hit hardest by the pandemic. Casinos, hotels, restaurants. It's a direct and devastating blow to Fertitta's leveraged wealth. He loves to gamble. He gambled in how he constructed his very large conglomeration of businesses. There was and is little diversification on his part. I think that gamble has failed

I don't know why @Nook would have made that up. He doesn't have a history of doing those sorts of things, not that I'm aware of.

Thanks, @Mango! Tons of information there. I'm not a financial wizard, but Fertitta appears to be in a heck of a lot of trouble. He isn't alone, of course.

 

He must have insider information, because since you live in Austin, half the people work for Dell and if nobody told you that, then it's probably that he's not buying an NBA team.

Anyone who's in the restaurant business is in trouble, especially someone who owns all those franchises.

But I hope this ends soon, because no matter what i feel about the owner , I want the Rockets and the NBA back .

 

I haven’t seen @Mango post in the Garm in years...

Thank you for the knowledge drop.