who are the Legends of Bum Fights on the Internet? I bet Tinman and DreamShake would be on top of the bum list fight
He's really testing us!!! "Shut up and Listen. The Rockets are never going to be sold unless the world ends." That begs the question, who the hell would want to buy if the world ended???
If he can't make payroll, or interest payments on his loans, the decision to sell won't be his. Restaurants are open now, so hopefully things will look up for Fertitta.
This just means he will use the Bank of Made Men to borrow and pay 50% pay day loan interest if he can no longer borrow even after paying 13% interest rate on notes. He'll even go through Bankruptcy and fight for years over it before he will give up the Rockets, so he's right, Rockets will be sold over his dead body
Rockets gonna go up in flames and they're gonna get the insurance money. That's the way it works in the movies.
Survival meant that the 62-year-old billionaire had to take drastic steps to position his company ride out the pandemic. He furloughed 45,000 employees — nearly 75 percent of his workforce — and borrowed $300 million, agreeing to pay lenders close to 13 percent interest on the money. Landry’s had enough cash going into the crisis to last through the end of the summer should the shutdown go that long. The $300 million, which was raised by the New York investment bank Jefferies Financial Group, was essentially an extra insurance policy should Fertitta’s properties remain closed through the end of the year. “He’s doing exactly what the top operator would do,” said Jefferies CEO Rich Handler. “Tilman made sure he did everything possible that if, God forbid, this goes longer than the summer and throughout the rest of the year, he still has the staying power to keep his company intact so he can rehire all of his people.” Fertitta and Handler have a longstanding relationship. They have partnered in two so-called blank check companies, raising a combined $566 million for future investments. Jefferies was the lead financial adviser in Fertitta’s recent acquisition of the upscale Del Frisco’s steakhouse chain. “In the event he’s able to come out a lot sooner,” Handler said, “he’ll have dry powder to play offense again.” [...] Right now, it’s all about survival. Fertitta is confident his company can stay on track if his properties can begin opening in the coming months. But he knows consumers will be timid initially. “Honestly, one of our biggest fears is we’re open and no one comes,” he said. That worry is being put to the test, as some states are allowing restaurants to open at 25 percent capacity. Landry’s has opened restaurants in Georgia, and many are open or expected to open in Texas per Gov. Greg Abbott’s phased reopening plan. But the reopening process isn’t as simple as turning on the lights and restocking the coolers. And there’s no guarantee of success. “We’re very concerned that we could lose more money by bringing in all the labor and only being able to do 25 percent,” Fertitta said. “There’s a business decision to this also.” Division heads will primarily make the calls on what to open. Fertitta said he wants his employees and his customers to be comfortable, and some may not be ready to come back. Fertitta said Landry’s has been planning for what the return will look like. The restaurants will likely offer a limited selection of items. All menus will be printed on paper. At his casinos, blackjack tables may only allow a few players at a time. Employees, and perhaps customers, will be required to wear masks. Slot machines will be taped up to ensure social distancing. [...] Landry’s generated $4 billion in revenue last year with $750 million in earnings before interest, taxes, depreciation and amortization, Fertitta said. Capital expenditures were $200 million and the company had $300 million in free cash flow. At the same time, he said, Landry’s paid $250 million in interest to service close to $5 billion in debt. Credit-rating agencies have taken note. On April 9, Moody’s Investors Service downgraded Fertitta’s company, citing earnings and cash flow pressures due to the pandemic and uncertainty around how long its restaurants and casinos will remain closed. Fertitta was nevertheless able to tap the $300 million arranged through Jefferies. “He’ll have a huge interest bill in the next couple of years, but at least he can sleep safely at night knowing that the company is on more secure financial footing now and isn't suddenly going to run out of cash,” said Will Caiger-Smith, associate editor of Debtwire, a news and data service focusing on the debt market. Investors’ willingness to continue to capitalize a highly leveraged company speaks to Fertitta’s ability to perform, according to people who have worked with him. “If you talk to 10 investment bankers they’d all say the same thing. He’s a talented guy. He’s got the best brands,” said David Jacquin, managing director for investment bank North Point Advisors in San Francisco. “He has a track record for delivering on his promises.” [...] March gaming revenue at Golden Nugget in Lake Charles , the closest Fertitta-owned casino to Houston, fell nearly 59 percent from a year ago to about $12 million, according to the Louisiana Gaming Control Board. The casino was open just 16 days in March. His other casino properties experienced similar declines. March revenue at the Golden Nugget in Atlantic City fell by $10.6 million, or 60 percent over the previous year, according to the New Jersey Division of Gaming Enforcement. Overall gaming revenue in coastal Mississippi, home to another Nugget property, fell a combined $56.9 million, or 46 percent, data from the Mississippi Gaming Commission show. Revenue figures for other locations in Las Vegas and Laughlin, Nev. were not immediately available. [...] For Landry’s employees facing financial hardships, Fertitta has been offering help. The company is providing takeout meals to furloughed workers out of a former Willie G’s restaurant on Post Oak Boulevard, just down from his Galleria-area headquarters and showpiece Post Oak Hotel at Uptown. The Fertitta family also recently put $1 million into a relief fund to offer financial support to employees in need. Landry’s vendors and others are also adding to the pot, he said, pulling out a $25,000 check the company had just received from a family trust. To the 25 or so retailers that lease space from Landry’s in company-owned real estate, Fertitta said he hasn’t sought rent from any of them. “I haven’t even deferred,” he said. “I just abated because they don’t have any money.” His philosophy is that everyone should share in the pain during this crisis. Landry’s isn’t seeking federal stimulus assistance, even though the company said it is eligible. And as a tenant itself in hundreds of buildings across the country, the company has been trying to negotiate with each of its landlords. “I feel like I owe them something and I feel like they owe me something. I’ve always been a good tenant. I’ve always paid my rent,” Fertitta said. “This is a meteor that hit the United States and the world and we all need to feel some pain.”
13% interest rate is pretty damn heavy insurance for a guy that said he has a lot of liquidity and doesn't need to borrow and can survive this for another 100 years. Just last month...he said he doesn't think he can survive if everything is shut down for more than 6 months. He must have gotten that Made Men loan money from the Philly mob
I hope he is forced to sell and below the price he paid for the team because of coronas. That or he keeps the team and moves in a 2 bedroom apartment somewhere.
lol...that's cold bro...That's Antoine Walker like...made $150 millions, but now living in a $400 1 bed room shared apartment with a roommate in North Dakota
CNBC " Mr Les Alexander, Will you Sell the Rockets?" Les Alexander " Is Yao Still on the team? Morey, where is Yao?" Morey "He retired Sir" Les Alexander "SELL NOW!!! 卖钱" Les Alexander "Call Xi" Morey "We can't sell to the Chinese President" Les Alexander "But he has lots of Chinese Money" Morey "We can't do it, but TIlman wants it" Les Alexander "Oh sure, I love Rainforest Cafe, the animals look real, make sure we loan him money so we can make more money, I love money" @Reeko
