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[Yahoo! Finance] : Texas Billionaire Who Levered Restaurant Empire Hit on All Sides

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by Dr of Dunk, Mar 25, 2020.

  1. Dr of Dunk

    Dr of Dunk Clutch Crew

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    Texas Billionaire Who Levered Restaurant Empire Hit on All Sides

    https://finance.yahoo.com/news/texas-billionaire-levered-restaurant-empire-151300657.html

    Excerpts (talks about debt in the article, too - may be worth a click) :

    “We are trying to survive,” the 62 year-old said in an interview with Bloomberg on Tuesday, warning that the U.S. could plunge into an economic crisis if the authorities don’t allow businesses to reopen in some capacity over the next few weeks. “I have enough liquidity to ride this out. I can’t go forever but I can go for a few months.”

    It’s hard to find any part of Fertitta’s business that’s not suffering as a result of the outbreak.

    His Golden Nugget casinos have been shut. Hundreds of bustling restaurants he operates under the Landry’s Inc. umbrella -- including Del Frisco’s steakhouse and Bubba Gump Shrimp -- are closed or open for take-out only, generating just 4% to 5% of their usual business.

    In his home state of Texas, where Fertitta enjoys near iconic status, one of the worst oil crashes in history is expected to further dampen demand for entertainment and dining.

    Even the Houston Rockets, which he acquired for $2.2 billion in 2017 by saddling more debt on his other businesses, are sitting idle after the National Basketball Association suspended its season.

    “We are doing basically no business,” the billionaire said in the interview. “I think there have been so many people laid off that it could take up to a year later until we are back to normal.”
     
  2. J.R.

    J.R. Contributing Member

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    Fern Tits finna go broke.
     
    FLASH21, Bo6, Richie_Rich and 21 others like this.
  3. daywalker02

    daywalker02 Easter Egg Hunter - Tell me why? نحن عائلة
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    He finna ride it out for months.
     
    Lawlruschang likes this.
  4. Section123row16seat1

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    Is the bank of Jeffries about to own the rockets in bankruptcy court?
     
  5. kjayp

    kjayp Contributing Member

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    Greed and the desire for more more more does potentially have downsides...

    These guys make a mint and are never content....

    "At least a junkie knows what he needs.
    You get a man strung out on green
    He'll give up everything he's got
    For just one shot at having it all."
    - Todd Snider - Easy Money
     
  6. SamFisher

    SamFisher Contributing Member

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    We should definitely prolong an ongoing public health disaster because Tillman wants to open up the golden nugget again.

    He should really declare chapter 11, I'm not joking. He'll have to live as a mere millionaire, like the rest of us.
     
  7. larsv8

    larsv8 Contributing Member

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    http://bbs.clutchfans.net/index.php...-houston-rockets.285000/page-11#post-11293109

    Worst ****ing owner.
     
  8. YOLO

    YOLO Member

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    it's a broken record
     
  9. TilmanFinancialWindfall

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    BROKE AF! Leveraged everything and now all his assets are in distress.

    Dude bought Rockets for $2.2 billion and almost $2 billion was paid for using Debt(or Liquidity as he like to say). He used his Casinos as collateral to we know how much Casino and Restaruant are worth now


    "
    Rockets owner Tilman Fertitta, who has reportedly complained about that contract to team staffers as well as rival executives, is the central figure in MacMahon’s story, and his leadership of the team in the two years since he paid an NBA-record $2.2 billion comes off as uneven at best.


    Fertitta raised a full two thirds ($1.4 billion) of the money for the purchase from selling bonds, and he also assumed $175 million in debt and received a $275 million loan from previous owner Leslie Alexander.



    Questions about Fertitta’s willingness to invest in the team naturally sprouted up when details of the purchase emerged, though he was clear with MacMahon that he’s willing to dip into the luxury tax, just not the repeater tax. He can say what he wants, but the Rockets inarguably cut costs last year, opting to take on minimum salary players instead of using the mid-level exception to replace Trevor Ariza. GM Daryl Morey also snuck under the tax at the last second when he dumped Brandon Knight and James Ennis at the trade deadline."
     
  10. donkeypunch

    donkeypunch Contributing Member

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    Finna go broke af-er.

    Sell the team.
     
  11. xiki

    xiki Contributing Member

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    Simple question: what does this ‘new reality’ mean for TheGoodGuys going forth. A fire sale might be a horrible optic for his other establishments, and yet???
     
  12. DM'sVP

    DM'sVP Member

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    I didn’t know Les loaned Tilman $275m to buy the Rockets from him. Man, I miss having a smart owner. If things don’t turn around soon then I can see Tilman having to take a massive hit on his investment in the Rockets. Tilman is probably going to file for bankruptcy soon.
     
  13. donkeypunch

    donkeypunch Contributing Member

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    Yeah..... Um..... Thats gonna be a no from me dawg.....
     
  14. larsv8

    larsv8 Contributing Member

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    Best case Tilman sells the team at a substantial loss to a mega billionaire.

    Worst case, we become a skeletal crew, akin to the Pacers, where every move is a cost saving move.
     
  15. xiki

    xiki Contributing Member

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    A def fear.
     
    apollo33 likes this.
  16. TilmanFinancialWindfall

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    He might still be able to make money if another REAL Billionaire like Bezo buy the team and move to Seattle.

    Who has worst luck as a sport team owner??? Got to be Mets owner. Got scammed by Bernie Madorf and had a deal to sell for $2.6 billion, but deal fell through. Now team is worth at least 30% least than what they could have sold just last month since even Billionaire are worth less.

    The Mets owner had to sell in distress after being finanically ruined due to falling for the Bernie Madoff ponzi scam, but they still can't find a buyer since they want control of the team


    "Had Cohen ended up as the majority owner of the franchise, he’d have reportedly taken 80 percent of the Mets for approximately $2.6 billion. Cohen would have officially grabbed the reins going into 2025, so even if the Wilpons do find someone to take his place immediately, it may be awhile before that person assumes control of the organization."
     
  17. Reeko

    Reeko Member

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    Leslie Alexander screwed us...he sold to Tilman, and his final F U was to to take the championship trophies on his way out

    boo this man

    @tinman
     
    Caesar, rgw20014life and tinman like this.
  18. TilmanFinancialWindfall

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    Can he still keep the team under Bankruptcy? How would the team be run? Has any owner of the 3 major sports ever had to file for Bankruptcy???

    Any Barista or Barristers or Lawyers or Cousel or Attorney out there?
     
    Easy likes this.
  19. Spacemoth

    Spacemoth Contributing Member

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    Best case: Fertitta listens to offers on the down low and sells us to a billionaire who can actually afford to go into the tax when our best player is still in his prime.
     
  20. bleedroxred79

    bleedroxred79 Member

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