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[Feigen] "[Rockets sale] is going to set the record" >$2b per Experts "Individual buyer"

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by heypartner, Jul 26, 2017.

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  1. cdain3

    cdain3 Member

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    Butt not big enough.
     
    #21 cdain3, Jul 26, 2017
  2. chenjy9

    chenjy9 Numbers Don't Lie
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    #22 chenjy9, Jul 26, 2017
  3. Icehouse

    Icehouse Member

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    So if they think it will be 2B+, to a single buyer, does that mean Landry's dude is out?
     
    #23 Icehouse, Jul 26, 2017
  4. RESINator

    RESINator Member

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    Interests from businessmans from mainland china per Chinese forums and rough Google translate
     
    #24 RESINator, Jul 26, 2017
  5. Invisible Fan

    Invisible Fan Member

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    Maybe it's my lack of imagination but I don't see how cable/broadcasters can pay more than what they did the last contract. There's the possibility of expanding the market and international broadcast rights but it's not a sure enough thing to affect valuation.

    Also interesting is that the Rockets don't own the building but is considered a plus in the article because of the cush deal they struck.
     
    #25 Invisible Fan, Jul 26, 2017
    dmoneybangbang likes this.
  6. peleincubus

    peleincubus Member

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    Sucks. I'm one billion and something short or I would buy the team.
     
    #26 peleincubus, Jul 26, 2017
  7. tinman

    tinman 999999999
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    For the people that don't know. They already are here.
    Who do you think Le$ gets his Yen.. I meant Dollars from?
    Gallery Furniture? Shipley's Donuts?
    Nah


    [​IMG]
     
    #27 tinman, Jul 26, 2017
  8. MorningZippo

    MorningZippo Member

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    Exactly, which is why I think Les is selling.

    Are you saying that the possibility of declining TV revenue is already priced in? I'd disagree with that, just because of the average age of people willing to buy an NBA team, but I could see the argument.
     
    #28 MorningZippo, Jul 26, 2017
  9. chenjy9

    chenjy9 Numbers Don't Lie
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    There is a big difference between doing business with Tencent and having your business owned by Tencent. Tencent is HUGE, so one has to do business with them in China. It's a necessary evil. To sell the team to them is the equivalent of jumping in an acid bath voluntarily however.
     
    #29 chenjy9, Jul 26, 2017
  10. Will

    Will Clutch Crew
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    To Rockets ownership: Please don't let anyone buy this team with leverage. The surest way to screw your fans is to sell the franchise to somebody who has to cut costs or jack prices to stay afloat. Deep pockets that can exploit loopholes in the cap system are a plus.
     
    #30 Will, Jul 26, 2017
    AroundTheWorld, Deckard, No Chance and 3 others like this.
  11. Fyreball

    Fyreball Member

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    The single buyer works in principle, but only if the pockets are deep enough to continue spending on the team.
     
    #31 Fyreball, Jul 26, 2017
  12. AvgJoe

    AvgJoe Member

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    More like 5 years after Harden retires....
     
    #32 AvgJoe, Jul 26, 2017
  13. heypartner

    heypartner Member

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    I wonder if the reason the experts think the sell will be to an individual owner who doesn't need outside financing is because many of these sales use those sports investment bankers for financing... which translates to annual payments, right?

    So, if in such a huge sale, with an investment based on steady, but modest, increase in value of the franchise license; if you add financing payments onto the yearly books, some owner groups might have problems....adding to your "cut costs or jack prices" worries. Thus, a sole buyer who doesn't need financing and can keep the team for a long time, can win a bidding war??
     
    #33 heypartner, Jul 26, 2017
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  14. ickaruto

    ickaruto Member
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    A Chinese purchaser and subsequently owner guarantees this team goes all out financially every trade deadline and offseason. "China's team" is gonna sell a lot of jerseys back on the mainland.
     
    #34 ickaruto, Jul 26, 2017
  15. chenjy9

    chenjy9 Numbers Don't Lie
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    Just make sure the sale includes a clause that states the team can never be moved outside of Houston.
     
    #35 chenjy9, Jul 26, 2017
    Deckard and saleem like this.
  16. saleem

    saleem Member

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    The new owner should be a dedicated Houston Rocket fan, and a native Houstonian.
     
    #36 saleem, Jul 26, 2017
    Deckard, Plowman and No Chance like this.
  17. heypartner

    heypartner Member

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    Why would you assume the group purchasers have deeper pockets? I could say, "More Buyers works in principal" but only if they have more money than the single buyer, and won't splinter over time. Where does that get us? And that actually seems to be the point of what the experts are saying. The experts seem to be equating "individual buyer" to the fact it is such a high-priced sell.

    The experts seem to be saying the buyers that align with a sports investment bank for financing will have annual financing payments. Thus, a single buyer will have less annual costs from the start....hence their ability to win a bidding war on such a large price tag.

    Of course, you could provide a circular argument saying a group of deep pocket individuals with no financing needs could have more money than the single buyer ... but I'll go with what the experts are saying in the article who know the profiles of typical sports franchise sales and the buyers.
     
    #37 heypartner, Jul 26, 2017
    Last edited: Jul 26, 2017
  18. heypartner

    heypartner Member

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    Have no worries. That "no relocation" clause already exists in the lease. If a new owner moves the Rockets, the can't get out of their lease. It would be like you moving, but still having to pay your old rent or mortgage.
     
    #38 heypartner, Jul 26, 2017
  19. chenjy9

    chenjy9 Numbers Don't Lie
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    You can pay to break a lease though. I want it in black and white writing in a contract where there are no loopholes. :D
     
    #39 chenjy9, Jul 26, 2017
  20. daywalker02

    daywalker02 Member

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    New Digger!
     
    #40 daywalker02, Jul 26, 2017
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