Leslie Alexander puts the Houston Rockets up for sale

http://www.chron.com/sports/rockets/article/The-Rockets-sale-What-you-need-to-know-11296483.php

Q. Leslie Alexander locked up James Harden for six years. He acquired Chris Paul. He hand-picked Mike D'Antoni and raved about the style of a team that has at least as much potential to contend since the championship teams. Why would he sell now?

A. In a way, because of all those reasons. Alexander has considered the "life change," as Rockets president Tad Brown called it, in recent weeks. When he made those moves and believed so greatly in them and still wanted out he knew it was time. If he could not muster the determination to stick it out now, he had had the evidence he needed to know what he wanted to do.

That was how Alexander always makes decisions. He gathers and weighs information, but once he considers himself ready, he makes his decision with no waffling, no second thoughts. He went from considering selling to determined to sell the franchise remarkably -- but typically -- quickly.

Q. Still, why not let Brown and Daryl Morey run things and just enjoy?

A. That was never Alexander's way. Though he empowered the people under him, he was far more involved in decision-making than many understood. Alexander let his people do their jobs, but on the highest levels, he was more than just kept informed.

It became understood in the organization in the late '90s that management could not tell Alexander what it believed needed to be done. It had to be prepared to make its case. That was why Morey, with his taste for evidence and details, worked so well with Alexander. But there was a reason Morey so often cited Alexander's role when he spoke of deals. Alexander was involved in decision-making large and small with a confidence that allowed Morey to be so aggressive. But that required an investment of energy he was no longer willing to continue.

Q. Why now?

A. Mostly for personal reasons. He was tired of the grind, tired of devoting the time and energy and emotion into the job that he had. He was not the type to let the front office make decisions and wait for an email. But putting all that aside, the time is right. The NBA is just at the start of it enormous television deals with money pouring in from Turner and ESPN. NBA business, even with the Warriors' romp through the playoffs, is booming. The league It will begin allowing advertising on uniforms this season.

Closer to home, with Harden signed to a long-term contract and the acquisition of Paul, the Rockets have two of the most marketable players in sports, further enhancing the Rockets' brand and value. The Rockets seem entrenched as a top five team. Rockets tickets sales are up dramatically after last season's downturn.
NBA franchises are worth more than ever and the Rockets' value could be on the rise.

Q. Is the record for price paid for an NBA franchise, the $2 billion paid for the Clippers, in jeopardy?

A. There is a chance. The Rockets have a far greater history and far less baggage than the Clippers. Though the Clippers were in the Los Angeles market, the Lakers owned the town. Houston is a rapidly-growing, top 10 market and the Rockets have deep ties in the enormous Chinese market. The Rockets also have a much more favorable lease in their arena. But former Microsoft CEO Steve Ballmer paid such an exorbitant sum to end the bidding quickly. It is unlikely that another sale will bring a buyer that motivated to blow even potential offers out of the water.

The more recent sales were of the Bucks for $550 million in 2014 and the Hawks for $850 million in 2015, but neither was considered on the same echelon as the Rockets, with the Bucks in a much smaller market and needing a new arena and the Hawks needing major arena renovations.

Q. How long will it take to sell?

A. The Rockets do not have to hurry, so it might be best to put aside the Clippers' six-week race to put a sold sign out front. The Hawks sold in seven months, the Bucks in five. For a local comparison, Jim Crane completed his purchase of the Astros in six months.

Q. Could the Rockets leave Houston?

A. It's possible, but exceedingly unlikely. Houston is a thriving, top 10 market. The Rockets have a favorable lease in an arena that has help up remarkably well – with some continued investment – since it opened in 2003. Some of the franchise's value is its strong international brand recognition.

The threat would be if a new owner has motivations unrelated to the factors others would value. When the SuperSonics were sold, they needed a new arena in a city weary of funding sports facilities and were sold to an owner, Clay Bennett, from Oklahoma City, eager to put a professional franchise in his hometown.

Brown said there is a determination to keep the Rockets in Houston, but beyond that, they are likely more valuable to a prospective owner planning to keep the team in town.

The Rockets' Toyota Center lease runs through 2033. Though a new owner could seek an out if he were so determined to take the team out of Houston, a strong, favorable lease in a good, like-new arena would make the Rockets a poor choice for an owner seeking to move a franchise.

Q. Will this impact the team and deal-making?

A. Not immediately. Alexander clearly will not tie Morey's hands. Morey can remain as aggressive as ever. The Knicks won't send Carmelo Anthony to Houston as a parting gift, but there is no reason to think the Rockets will do things differently while waiting for a new owner.

Long-term is less predictable. Alexander was always willing to spend freely, whether buying draft picks, funding a D-League team (the first with the now common joint operating agreement) or bringing in players with contracts just for a look before releasing (and paying) them. For the right team, he has approved paying luxury taxes.

Beyond that, ownership is greatly important to the top players. It is impossible to know how Paul, for example, will react next summer as a free agent to a new owner before we know who that will be. Though Brown, Morey and D'Antoni all have long-term contracts, ownership could make changes. Stability was a great strength of Rockets management. That is uncertain now, with change coming at the top.

Q. How should Alexander's tenure be remembered?

A. The championships in his first two seasons are a good place to start, but they also inform much of what followed. They gave a name to the franchise's charitable arm – Clutch City Foundation – with members of the organization knowing from the start how great a priority that was to him. They also set the standard that drove decisions ever since.

The Rockets have not returned to the Finals since those initial title teams, reaching the Western Conference Finals twice. But Alexander made sure his team pursued greatness, never allowing tanking and as a result, delivering customers a good product.

The Rockets had the NBA's fifth-best record and second-most winning seasons in his tenure. They also had incredibly-bad injury luck and some crushing and spectacular defeats. But Alexander delivered on the goals he described to former general manager Carroll Dawson when he bought the team, to pursue championships and to serve.

Q. How should players, and particularly Harden, feel about the news?

A. Most players don't get to know owners well, but the way the franchise has been run does come down from the corner office overlooking the Toyota Center practice court. Players do get to know Brown, to the point Harden said on Saturday he is like a father to him. They know Morey and in some cases, were recruited by him. They play for D'Antoni, who is empowered by the general manager to do things his way.

Harden, especially, said he chose to be under contract for six years because of the relationships with the team's management. Two days before the Rockets announced Alexander would be selling the team, Harden cited Alexander as a reason for committing to stay in Houston. He likely would have made the choice to be paid $228 million over six years, anyway. He could continue to work with Morey and Brown long after the sale. But that is uncertain, now.

Paul will become a free agent next summer and will have to look at the new ownership as a major part of his next decision.​