What if COVID-19 Forces Tilman to SELL The Rockets?

You cannot be serious.

He is worth bt 4 to 5 billion dollars.

The Tilman hate and ignorance on this forum is outrageous.

 

Trade 5 past years First round picks and Trade or swap 5 future picks.

it means to me that Tilman sold future picks for money. It’s about money.

As a result, 6 seed.

Ask MDA to over achieve 500/100 in playoffs , it means nothing.

 

Yeah, no.

 

When u have multiple owners idk how that Luxory tax works. More than likely they’re will be a difficult desicion. It’s harder to agree on something. Yao lost his respect for rockets when he les sold the team to tilman. Moreys words made the situation worse between us and Yao

 

As cheap as he is
He wanted to be the owner of the Rockets and be a nba owner
It’s a privilege and grand one

see how James Dolan doesn’t give a damn if fans or players hate him?
He OWNS the team so he can say everyone to kiss his ass

the former owner of the Rockets were only in this like it was an internet stock sold it high

his actions proved he only cared about money cause its not like he was poor like you cheap ass rats who don’t contribute to Clutchfans and post like this your tik tok account

@Os Trigonum

 

He might have to. His businesses are all in the entertainment industry and the long term valuation on an NBA team is probably better than anything else he owns. So if he needs to liquidate to stay afloat, it might be the Rockets since he can get the best dollar value for the team.

 

Mr. Tilman is far too wealthy and powerful to submit to the whims of a virus.

 

@Air Yordan

Les SOLD the team, he's the only one to SELL OUT

 

3 months of CDC recommended social distancing is going to bankrupt Tilman

 

RE Net worth : Securities would be marked to market (massive decline in recent weeks), but the hotel assets are usually valued based on a multiple / (Cap rate is the denominator) of what NOI was for the trailing twelve months, net of any debt - Point being that current liquidation value is significantly lower than stated value of assets. Most of their net worth is tied up in illiquid assets. Liquidation values matter in this climate, if you look at the Caesar's Ent. Eldorado merger, they are trying to get out of due to CV, so some calculated value from 3 months - 12 months ago is not relevant. In commercial RE/hospitality it is common to be perceived as cash poor since you typically refinance a property (will be constantly highly levered) once you've built enough equity in it, and then roll that cash into your next deal as the equity portion of the financing. I don't think people here are just assuming Tilman is careless and cash poor, I think they are looking at how a majority of people in this industry conduct business.

Cash flow is the most important factor in a highly levered business, if it is completely cut off (No vegas, no NBA, people staying away from dining out) you can be headed for disaster. Much of the portfolio (restaurants) are low margin businesses when taking into account labor, rent, debt service. In this situation you have a ton of fixed expenses, and significantly reduced cash flow. You don't make it up with delivery service sales from everyone staying in, those cost the restaurant a significant portion of their margin in fees.

If he runs into a liquidity issues, the options would be sell, or raise new debt/equity. In this environment, it may be tough to do. I would be curious to know how he financed the team, if it was through Les then that is even more interesting to see what will transpire.

 

I'm in the finance/valuation side of the restaurant industry. The entire industry will be SIGNIFICANTLY HIT HARD. Like in a f'd way.

This is an industry that can't afford sales declines, it's very low margin.

Tilman's fate will likely rest at the hands of his lenders, and then potentially landlords. Lenders are going to have to pick and choose which credits to support and how/how much, while letting other credits suffer, perhaps and in many cases likely to the points of Chapter 11 or Chapter 7.

Without knowing the background of every NBA owner, I'd still nonetheless put him in the Tier 1 category of owners most impacted by this. As others have noted, while he has solid net worth, it is a large % illiquid and tied to the success of his restaurant/entertainment/hospitality empire.

 

He's probably not cash broke completely, but everything being said in this thread is true. Tilman is a billionaire in the sense that he has billions in ASSETS....not cash. His businesses are highly leveraged, and he relies on the daily cash flow to fund his lifestyle. If the cash flow on these businesses is affected negatively, it hurts his pocketbook way more than an owner like Steve Ballmer. Obviously he's rich as hell and isn't hurting like the stadium workers, but it's naive to think Tilman isn't sweating because of this. It's the reason why he was one of 3 owners that was unwilling to explore empty arenas unless the government mandated it. He needs fans in the seats spending money on concessions. It's the nature of his business since profit margins are low to begin with.

 

We should support our restaurants though
You dumb Les Alexander fans want Tilman to fail but all those cooks and waitresses aren’t exactly rich people

I went to Pappadeauxs the other day
And I tipped

unlike all you cheap bastards who don’t contribute to Clutchfans
@Reeko

 

I too went to Pappasitos to support Tilman in these times of need.

 

Still got the Golden Nugget.

Oh well, casino biz is not going great either.

 

Yep, restaurants are shutting down. Casinos are shutting down. Those are Tilman's cash cows.

 

those are hard working people too

James Dolan of the Knicks is the most hated owner ever unlike the fake ass outrage we get here .
It actually translates to people who pay money and are in the stands.

half of you never go to games, and it shows.

James Dolan

look at this


People who aren't going to Kemah or eating at Rainforest or gambling at Golden Nugget

are not going because
1. the coronavirus
2. they rather eat somewhere else for taste
3. they rather stay at another property for better deals in vegas


Dolan ain't selling . He's gangster like that .

And we know TIlman wants to be gangster.

But the truth is there is really no outrage in Houston by paying customers who sit at games about his handling of the Rockets
And that's because I don't think they really care that much

 

We need Elon Musk to buy the Rockets.