Leslie Alexander puts the Houston Rockets up for sale

I posted the DK thread that got locked. No problem. But I didn't put in large font it just happened. Then I washed my dog. Yo on line police, stuff happens.

Still think he should lead the charge and that's not fake news.

 

You let all 99ers down. You should have higher standards. Waiting to see what @tinman would say....

 

Maybe we should ask Disney if they are interested. Different Disney character logos on every jersey. We'd get so much national coverage and the boys of Espn won't be able to say anything negative about us.

 

@tinman is offended

 

Les: Well, it's not my problem any more.

 

Tilman is good friends with all the owners here in Houston. I'll be surprised if he doesn't make it happen.

 

He'll need some big money backers. I don't think he has $2.5 billion in cash to throw around.

 

I honestly don't know if buying the Rockets at the current market value is a good deal. The NBA and Rockets value is at an all time high. Sure, 50years from now, people will be saying how good of a deal it was but as of right now, not so sure.

Last year's revenue was $244million. Just player expenses alone were $103million and that keeps going higher. Let's assume a 40million annual profit which equates to a 2% return annually if the team was sold for $2billion. That's a pretty high purchase price for so little return and we all know it's going to be higher than $2billion.

The only way to make good money is to flip it like Alexander is doing. I for sure wouldn't buy a $2million house and only expect a monthly rent of $3,333.33.

 

im a bad person.......

 

You seem to think people buy sports teams to make money. The majority of people who buy them do so with the same mindset a 40 year old buys a Harley.

Charlie Thomas said he made a killing when he sold the Rockets to Les. I think Thomas bought the team for around $15 mil.

 

Fair enough.

But we're not talking about a Harley here. If Tilman were to buy it, we're talking about 70% of his net worth.

 

That's why I don't think he buys it. Someone else will easily out bid him.

 

That's if he was bidding by himself, but I don't think that's what is going to happen. He has some VERY rich cousins who might be willing to invest a bit towards buying an NBA franchise along with others who would want to chip in.

 

The list of people on the planet who can afford a $2B investment is probably very short. And probably also includes a lot of middle east oil peddlers.

 

Owning a sports team in a major leauge is not an investment, its a status symbol.
Like having the biggest mega yacht.
Only few can own an NBA team, and for the rich, it makes them drool.
Most soccer teams in the world operate on heavy losses. The NBA, and especialy the Rockets with its great management is one of the few that can actually operate in an even budget.

 

Since when is owning a rare commodity that appreciates in value at 7-15% per year not a wise and safe investment.

Buying a Picasso for $200m is also a status symbol, to impress your rich circle of friends and show off to guests. But it also appreciates in value over time ... and is an investment.

I don't know why ppl keep saying pro teams are toys for the rich and famous, as if they depreciate in value like a luxury car or a trophy wife, when sell after sell of these rare commodities (franchise licenses) prove every time how great these investments are.

 

Real Madrid and Barcelona are the most popular teams in the world by far than what any NBA team would ever be. (They operate in losses every year btw) and their projected value is about 3.5 billion dollars.
The value of 2 billion as the Rockets price tag is over valued by that standard.
Im not saying its not an investment at all. Power and influence can get you more than money many times, and owning a team gets you in a power position. That is what a status symbol means. its not a toy. Its power.
If you can make a profit out of it on selling, even better, but I doubt if thats the driving force behind purchasing a sport team. Not that I would ever know

 

"If you can make a profit on it by selling even better." Dude when has an owners a US team ever not made a profit when selling? They know it's the norm, not the exception.

Do you really think these annualized gains of 7-15% are rare?

Is investing in the nearly sure thing of increasing value of the franchise license the sole driving force...no, prestige and status play a large part just like they do with buying a $200m Picasso. The sexiness of the purchase is why they aren't buying $2b in municipal bonds of equal growth potential. But they aren't ignoring the growth potential, like you are.

It is no different than investing in any rare commodity. Franchise licenses and rare art are not like buying the depreciating value of a private jet or yacht.

 

It's the perception that since franchises may not be highly profitable on a yearly basis that they're a poor investment. As you've pointed out, the profit cones from the appreciation of the franchise year by year and the ultimate sale of the franchise.