Tilman trying to buy Ceasars Palace [update - sold to el Dorado corp]

Go big or go home. Like it. This is a man who gets it. The House always wins.

 

What is the name of the song?

 

Sweet move.

 

I started a thread this past October when Tilman first approached CET about acquiring or merging with them. It was moved from the GARM to another section that nobody has much interest in and quickly died after less than 2 weeks. I hope this stays in GARM where more people can interact and express opinions concerning this.

Since October, Carl Icahn has entered the picture and has been been actively buying shares. He has quickly acquired close to 30% of CET by purchasing shares previously owned by Apollo Mgt and TPG Capital formerly their largest shareholders. Icahn has a history of breaking up companies and rearranging them for his own financial gain so it will be interesting to see what happens.

Only time will tell what happens with this as CET quickly rebuffed Tilman's previous offer last year but pairing up with Icahn may get it done. In the meantime other suitors such as El Dorado Resorts are looking into merging with or acquiring Caesar's as well.

 

Dreams and Nightmares

 

It doesn't matter how successful or wealthy Tilman becomes. Two things are for certain. He will always try to avoid paying the luxury tax. He will always continue to extend himself to buy the next biggest and better. Somewhere along the way it will catch up with him. Quite frankly, im not all that impressed with his acquisitions outside of the Rockets.

 

He's persistent : https://nypost.com/2018/10/21/caesars-to-reject-merger-offer-from-golden-nugget/

 

The Rockets are worth $2.3B now. I saw $2.5B somewhere but lets stick with the first one. The Warriors got a new stadium but if you do an analysis of the value over the last 10 years they increased by like 3-4 fold by winning championships before that happened and the new TV deal shares. How much differently did we look at that franchise vs the Clippers before they won? LA/NY have built in advantages that you mentioned but there is another way. Cleveland's owner was also trying to capitalize off of a championship but his value left with LBJ. Milwaukee turned around because of success. I have the analysis in an old post somewhere. TF has always been close to the Rockets or at least had continued communications with Les from what we know previously. Les beat him out originally from buying the team and these type of safe high producing, high profile assets don't become available frequently. It has a cache that dramatically aids his brand. When TF bought the team his goal was to boost the value of the franchise, increase revenues from other sources, and a championship or two would likely have a great impact. It is also a place that will generate steady profit (a little over $100M EBITDA) and appreciate in value. I still will wait to see if he goes into the luxury tax but was pissed this year. He would have done it for Butler but not for Ryno/Knight. If you sell after 10yrs and make an extra $1B in a sale that is a great investment. If the franchise is continually successful like it was during Les reign he probably holds it 20+ years too even if he goes cheap because the TV money and labor harmony has been good. We will see if that stays the same.

I am afraid the deals we did this season basically lock us out of the luxury tax and adding another big piece.

 

i better get a damn discount when i book a room for being a rockets fan

 

This tweet is inaccurate.

That article, and the original one in the OP, says there are two perspective buyers with separate bids.

I suppose Icahn will have influence on who wins the bid, but it's not entirely clear if he cares between Eldorado Resorts or Fertitta. Although, I'm going to guess that should Fertitta get the cash needed, Icahn might favor him as CEO...which appears to be a major concern of Icahn's.

 

Will bringing the Cougar recruits to Caesars be a violation? Or is that just the name of a p*rn film.

 

Looks like Caesar's, unlike the Rockets, has the wisdom to sell to a party with actual money to buy and run it properly.

 

Tilman's likely better off, in my opinion. Pour some of that money you didn't spend into the Rockets, dude!
The Rockets and the Toy Box. That venue needs some major upgrading to make it fan friendly for Rockets fans.

 

One is trying to rake in every last $ while t'other is Mai Tai'ing w/his plenty enuff'o $$$.

 

I have never been a fan of TF but he is too heavily leveraged and is in a situation where he needs almost every asset to overperform to keep up.