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

You going to pay the shipping to the Bay?! Let me know if you get a good deal I need a new Mattress from Mac as well.

 

And he can't sell any assets to raise the cash to pay all that interest. The only asset he can sell without taking a huge loss is the Rockets, and he refuse to sell that. He said he's trying to sell his Jets, Yachts, and his Mansion, but no one is buying. I just don't know how he can pay all that interest when all his business is bringing in 5% of revenue than they used to and it's unlikley it will go back to business for a long long time until there's a vaccine.

 

I'd be interesting to see what he would ask for if he sold to break even like you said. He paid 2.2 and the team is valued at 2.5 already. 300 million uptick in one season, wouldn't surprise me to see him ask for 3 billion.

 

He might ask for 3 billion, but he'd be dreaming. This is not a seller's market. I don't think he could get what he paid. Dell might give him 2 billion for the whole shooting match, but that's pure speculation on my part. That's what I would offer, if I were Michael Dell, and I'd walk away if Tilman wouldn't take it.

 

That's because 99ers always remember why they joined this place in the first place
@Clutch

 

Can't imagine a better place to be during a a viral pandemic of upper respiratory infections (and a depression) than a smoky casino.

Not one waitress or janitor or dealer or cook should have to die for us to watch basketball. If that happens, I'm done and I would consider Frittata much, much worse than Bud Adams, who is one of the few I legitimately hate. Dude needs to sell now, cut his losses, and retain what humanity he has. Greater desperation will not bring out his best.

 

Then again, as we saw with both Tilman and Ballmer, pro sports franchises are always a seller's market. The scarcity of them, combined with their appeal to megarich people who like the spotlight, make them a desirable ego trip. What Tilman has working against him is that: A) he overpaid for the team when he bought it, and B) everyone knows he's desperate. $3B is a pipe dream, but I could see him getting close to $2B if he puts it up for sale.

 

This is what I’m guessing. That’s probably why dell offered him 1 bil for 50%. I think he’ll end up getting what he paid.

 

How did Tillman piss of China?

Because he did not fire Morey?

 

I don’t know anything from Dell’s end, just from the Rockets end of it.

Dell did offer to purchase a half interest in the Houston Rockets from TF and TF was not interested in any partnerships.

I have no idea of Dell’s current interest and as far as I know TF has zero interest in selling the Rockets to anyone.

I don’t even know if Dell would want to purchase the entire team or if he has his reasons for offering to purchase half the team.

 

I’m confused. I assumed you were saying Dell recently offered, to test how desperate TF is while his businesses are tanking and he’s looking for cash.

So, when did he make that offer?

 

I heard about it BEFORE the COVID19 shutdown so it is safe to say it had nothing to do with TF’s issues the last 4-6 weeks.

I remember hearing about it (estimate) 6 months ago (with everything going on it could have even been earlier).

I have zero knowledge on why Dell wanted half or what his motivation was. It was put to me during a conversation about the financial viability of Rockets ownership when TF was making more purchases in the hospitality market.

It was made clear to me that TF doesn’t want any partnerships.

We can speculate on what the motivations were but I would only be giving you my opinions.

 

well, he is interested in sports ownership, reports of trying to get good deals in Premier League football.

 

Ring-a-ding-ding.

I still think expanding Golden Nugget et al into China/Macao/Hong Kong is why he bought the team in the first place. Still possible, and I have to imagine China would be very receptive to that kind of foreign investment...but, my God, who's traveling for fun in the wake of this? OTOH, people did gamble more and have the impression that life was fleeting in the wake of things like the Black Death and Spanish Flu, so why not?

I just don't think Fertitta has the financial resources to hold out until that potential hospitality promised land.

 

I don't. 1 billion for 50 percent implies a value of 2 billion USD. Which is less than the 2.2 Fertitta paid for the team. The NBA does not want the perception that these teams lose money when you purchase them. I'd expect a minimum value for proration of 2.5 billion, if Dell were to buy in. (And wouldn't that be awesome?) Let MD buy in for 40-45 percent of that, let some other decent investor buy in for 10-15 percent, and now we avoid the minority shareholder screwing problem in closely held corporations.

Plus, Fertitta gets enough money to keep all his stuff afloat until people start going back to Rainforest Cafe again. Maybe MD et al will he willing to go Into the tax to resign PJ and maybe go after a FA? (With I dunno what.)

Beats a fire sale, doesn't it?

 

Dump one of the following players will miss the playoffs next year.

Covington, Gordon or Tucker.

GSW, Blazers and Pelicans will make it next year.

Next year Pelicans salary is 83 million with 5 rookies contracts.

 

What would be the ownership percentages after the buyins?

There could be problems if Fertitta retains the ultimate decision making power while owning less than 50% of the team.

 

Tilman has already drawn down 300 million credit line and we don’t know how much nba loan he drew down.

Interest needs to be added.

Hotel Property tax and insurance are huge, so is restaurants lease.

 

Fertitta spoke again to Fox News :