The Rockets are making the 3rd highest profit in the NBA ($40.7 million)

How is that possible with the worst merchandise in the league?

 

Thanks Lin!

 

Thanks to the entire continent of Asia since 2002! We appreciate the financial support so much, that we will keep your forever blah Chinese hyrogliphic style uniform!

 

This.

 

And people worry about how much the Rockets spend... silly rabbits.

Let Morey and Les worry about the dollars. Clearly they're doing a better job than 26 other teams in the NBA. Heck, you can even argue that they're doing a better job than the Bulls considering the size of the Chicago market and the Jordan legacy.

If Les and Morey feel comfortable spending money, who are we to question them?

 

He hasn't had to yet. Imo, I think he would but we gotta wait and see.

 

Is it really because of Lin, or rather that Harden and Dwight are here?

 

Clutch is making it rain

 

4% for the 3rd highest in the league. Lakers at 100 mill though...Ballmer 2bill suddenly makes more sense. That's 5% right there if they match the Lakers which is quite a stretch but 2-3% seems feasible which would put him in the 50mill category.

 

I had a feeling people on here would automatically jump to the conclusion that Lin, Yao, & the Asian marketing $ are somehow the reason for Rockets profitability.

Trust me, the bonus revenue they get from the Asian marketing (note: only marketing INSIDE THE TC) is just that.... and BONUS. I remember Morey saying one time that the Asian marketing allowed from the league accounts for less than 5% of their total take home.

The bulk of the Rockets profitability comes from these things-

-Lucrative New TV deal (imagine what these numbers would look like with full carriage)
-Carry over from 2013 All Star game (note that this happened in 2013 fiscal year which could be fudging the numbers a big for last year).
-Control of Operations at Toyota Center
-Toyota Center Business suite deals, and corporate seating (helps with selling seats, but hurts with low or late attendance at low profile games).
-Texas State Tax benefits
-Smart Business Procedures

I can only imagine what the Rockets numbers would look like if they had the whole CSN debacle fixed, but you see now why they are fighting so hard to make it work. Having a stake in ownership of your network is huge financially. All of that being said, the real reason why the Rockets are so profitable is from a business perspective Les Alexander & CO. treat the Rockets not just as fun hobby to play around with, but a serious business. Other owners are now coming into the fold and are thinking the same way. Les Alexander is just ahead of the curve.

 

How are they able to pull this off without a clutch doll?

 

None of the above.

Spoiler

and

Spoiler

The Rockets have one of the sweeter stadium deals which allow them to rake it in more than most teams.

 

This is why I wish we would go into the lux tax, and never worry about that, because the Rox are making money and that does not even include the franchise valuation.

DD

 

Looks like revenue was 150, 135, and 191 the last three years.

Since the seasons don't match the fiscal years, it's hard to measure Lin's effect.

Revenue dropped from 2012 to 2013. Much of that might be due to a lackluster second half 2011-12.

 

My understanding is D12 is more popular over there isn't he? We'll be fine...or rather, Uncle Les will be fine.

 

Lol. This should never be an argument for why OKC should have traded Harden. I would find a way to get rid of Perkins (at that point I think he still had value) and any other contracts to pay Harden.

 

That's $40 million A YEAR though. I'll take that, it pays itself over time (and then some).

 

Riiiiiiight, Mr. Smart Businessman!

More like: Make millions every year, then sell the team 10 years later for twice what you paid for it.

 

We are talking about gross income that is in the hundred millions. 5% is still a lot of money.