[NY Times] The Houston Rockets Are for Sale, and They Will Not Be Cheap

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by Os Trigonum, Jul 18, 2017.

  1. Os Trigonum

    Os Trigonum Contributing Member

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    article claims the Rockets are among the best-managed teams in the league. #mediaconspiracy
    https://nyti.ms/2uttLAu

    The Houston Rockets Are for Sale, and They Will Not Be Cheap
    By KEVIN DRAPER JULY 17, 2017

    The Houston Rockets are for sale, the team’s president, Tad Brown, announced Monday, sending shockwaves across the N.B.A. and fueling speculation that the team could draw the highest price ever paid for an American sports franchise.

    The sale of the Rockets — a stable franchise with two superstars that is coming off a successful season — could be the perfect storm for a record sale in the league. The N.B.A. is already awash with a gushing stream of revenue, and the Rockets are in the country’s fourth-most populated city and have a huge toehold in China, as well.

    How much the Rockets will ultimately sell for is anybody’s guess, but it will not be cheap. Forbes estimates that the Rockets are the N.B.A.’s eighth-most valuable franchise and calculates they are worth $1.65 billion. Forbes’s valuations, it should be noted, are just estimates, and 10 months before the Los Angeles Clippers were sold for a record $2 billion, Forbes estimated the team was worth just $575 million.

    Brown said there was no timetable for the team’s sale, but that they would not rush the process. Leslie Alexander, the team’s owner, said in a statement, “I’ve made this decision after much deliberation with my family and friends, and do so knowing the franchise is in great shape with the players, coaches and management team in place.”

    Alexander, 74, bought the Rockets 24 years ago for $85 million. Alexander made his wealth through investing, but with a sale that could bring 20, 30 or even 40 times the amount he paid for the team, buying the Rockets may have been his savviest investment of all.

    That is not a surprise in itself, as professional sports franchises in the major American sports have almost always risen in value, often astronomically. In one of the most extreme examples, Donald Sterling brought the San Diego Clippers for about $13 million in 1981. When he was forced to sell by the N.B.A. 33 years later in Los Angeles, Steve Ballmer, former Microsoft chief executive, bought the team for $2 billion.

    Compared with large, publicly traded companies, Ballmer told ESPN’s Ramona Shelburne, with an N.B.A. team “there’s much less risk.“

    He added: “There’s real earnings in this business. There’s real upside opportunity.” (Not mentioned was the potential for Ballmer to receive tax breaks of as much of $1 billion for the purchase, making the price more palatable.)

    But even recent purchases of some of the league’s less appealing franchises, like the Atlanta Hawks and the Milwaukee Bucks, have been staggering. The Hawks, along with operating rights to their arena, sold for $850 million in 2015, and the Bucks for $550 million in 2014.

    The rise in N.B.A. franchise values is fueled in part by the explosion of television money. Three years ago, the N.B.A. signed a nine-year, $24 billion broadcast agreement with ESPN and Turner Sports. With an annual value of $2.66 billion, the deal nearly tripled the league’s annual revenue from its previous agreement, signed in 2007 — and that did not even account for each team’s separate, local television deal.

    TV ratings for the last three N.B.A. Finals, all of which featured the Golden State Warriors and the Cleveland Cavaliers, have been the highest since Michael Jordan was winning championships in the 1990s. The N.B.A. set an attendance record last season, for the third straight year, and is making inroads internationally.

    There are also the factors of scarcity and novelty. Any billionaire can buy a Los Angeles mansion or a private plane, but only 30 of them can own an N.B.A. team. Sitting courtside watching your own team compete, conversing with some of the most popular athletes in the world who are your employees, is priceless for some, and is a commodity rarely up for sale.

    The Rockets are one of the league’s best and most well-run franchises. Last season, the team ran a frenetic and entertaining offense under Coach Mike D’Antoni, finishing with a 55-27 record while obliterating league records for most 3-pointers made and attempted in a season.

    They made their fifth straight trip to the playoffs and advanced to the conference semifinals before losing to the San Antonio Spurs in seven games. D’Antoni, in his first season with the team, was the N.B.A.’s Coach of the Year, and guard James Harden finished second in voting for the Most Valuable Player Award.

    Still, the Warriors came away with their second championship in the last three seasons, and chasing them might seem like a hopeless task for the rest of the league. But the Rockets have been aggressive this summer in a hectic off-season for the N.B.A. Last month, they acquired Chris Paul, one of the league’s top point guards, in a blockbuster trade with the Clippers. His addition is expected to give Houston one of the top backcourt tandems in the league next season.

    The Rockets might not be done augmenting their roster, either. They have been pursuing the Knicks’ Carmelo Anthony in a potential multiteam deal. Anthony, a 10-time All-Star, has a no-trade clause in his contract with the Knicks, but he is believed to be willing to waive it if the Knicks can work out a trade that would send him to Houston.

    But even as the Rockets attempt to build for the future, their current foundation gives them an enviable stability. Daryl Morey, the team’s general manager and architect, and Harden recently agreed to long-term extensions. Harden’s revamped deal, worth about $228 million over the next six years, will keep him under contract through the 2022-23 season.

    That stability will probably translate into an even bigger payday for Alexander.​

    folks may want to revise their sales price estimates in the poll thread ;)
     
    mightybosstone and daywalker02 like this.
  2. rocketsballin

    rocketsballin Member

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    i'd buy them myself but they're too expensive
     
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  3. daywalker02

    daywalker02 Member

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    couple of billions .... what time to be alive and a multi billionaire.

    They wish..... 6 games and an embarrassment. Error.

    [​IMG]
     
    #3 daywalker02, Jul 18, 2017
    Last edited: Jul 18, 2017
  4. phantoman

    phantoman Contributing Member

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    this all makes sense to why they signed harden to the biggest and contract in the NBA. And a reason why they are going all in this year. This will help increase the valuation. This has been planned for at least 4-5 months. The 4th largest city in the US and 8th valuable franchise, there is definitively upside.
     
  5. Pen15clubber

    Pen15clubber Member

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    Can't afford them. But I probably could afford the shitty trailblazers but why would I buy a team that starts two midgets and the Marcus Aldridge doesn't even want to be a part of @Jay23 @DrexlerFan
     
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  6. okierock

    okierock Contributing Member

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  7. Kevooooo

    Kevooooo Member

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    If only we had won game 7 against the Spurs...
     
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  8. peleincubus

    peleincubus Member

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    Why buy the Rockets when you could just buy an iPhone? The new one comes out in a matter of months.
     
  9. DirtyDizzil

    DirtyDizzil Member

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    Well.... Checked my bank account and im short about 2 billion
     
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  10. No Chill Rocket

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    So I'm guessing they're worth around 2.5billion. So that would mean you have about 500 million in your bank account? Reply with the last 4 of your ssn and your bank account info I'm going to wire you the rest of the cash . Should take about 3-4 business days max:p
     
    #10 No Chill Rocket, Jul 18, 2017
    Last edited: Jul 18, 2017
  11. DirtyDizzil

    DirtyDizzil Member

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    Dont trust, nigerian prince got me last time
     
  12. Derp McFlopsky

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    Imagine the sale price if we win. Chip this year....

    Les just getting out in front lol
     
  13. dischead

    dischead Member

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    Les wants to get out before the advertising goes on the jerseys. He knows the NBA will take a hit from the backlash.
     
  14. HayesStreet

    HayesStreet Contributing Member

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    The price is what someone is willing to pay. What it's worth will depend. Middle east oil and chinese are dropping bombs in soccer. They'll spend a billion dollars just buying players. I think it will top Balmers bid.
     
  15. rockets13champs

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    Ya.... I would like to buy one too
     
  16. red5rocket

    red5rocket Member

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    Net Worth of maybe $8 million
     
  17. rockets13champs

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    LOL
     
  18. samtaylor

    samtaylor Member

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    I think this was in response to Jeter and co. buying the Marlins.
     
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  19. rockets13champs

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    Yeah she is going on a rant we all do of owning a team but not having the funds on twitter
     
  20. RockWest

    RockWest Member

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    Because by the time your iphone become worthless in 5 years, the Rockets probably gained another billion in value.
     
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