1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

[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.

Page 2 of 6
  1. cdain3

    cdain3 Member

    Joined:
    Jun 27, 2008
    Messages:
    1,978
    Likes Received:
    763
    Butt not big enough.
     
    #21 cdain3, Jul 26, 2017
  2. chenjy9

    chenjy9 Numbers Don't Lie
    Supporting Member

    Joined:
    Nov 1, 2008
    Messages:
    13,534
    Likes Received:
    10,525
    #22 chenjy9, Jul 26, 2017
  3. Icehouse

    Icehouse Contributing Member

    Joined:
    Jun 23, 2000
    Messages:
    13,470
    Likes Received:
    3,814
    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

    Joined:
    Nov 20, 2014
    Messages:
    1,991
    Likes Received:
    589
    Interests from businessmans from mainland china per Chinese forums and rough Google translate
     
    #24 RESINator, Jul 26, 2017
  5. Invisible Fan

    Invisible Fan Contributing Member

    Joined:
    Dec 5, 2001
    Messages:
    43,698
    Likes Received:
    25,633
    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

    Joined:
    Oct 26, 2002
    Messages:
    25,612
    Likes Received:
    13,514
    Sucks. I'm one billion and something short or I would buy the team.
     
    #26 peleincubus, Jul 26, 2017
  7. tinman

    tinman Contributing Member
    Supporting Member

    Joined:
    May 9, 1999
    Messages:
    98,915
    Likes Received:
    41,513
    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

    Joined:
    Jun 24, 2010
    Messages:
    3,253
    Likes Received:
    2,516
    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
    Supporting Member

    Joined:
    Nov 1, 2008
    Messages:
    13,534
    Likes Received:
    10,525
    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
    Supporting Member

    Joined:
    Feb 14, 1999
    Messages:
    5,077
    Likes Received:
    9,139
    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 Contributing Member

    Joined:
    Apr 8, 2009
    Messages:
    14,962
    Likes Received:
    12,262
    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 Contributing Member

    Joined:
    Apr 8, 2009
    Messages:
    3,637
    Likes Received:
    392
    More like 5 years after Harden retires....
     
    #32 AvgJoe, Jul 26, 2017
  13. heypartner

    heypartner Contributing Member

    Joined:
    Oct 27, 1999
    Messages:
    62,615
    Likes Received:
    56,405
    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
    don grahamleone likes this.
  14. ickaruto

    ickaruto Member

    Joined:
    Oct 16, 2012
    Messages:
    483
    Likes Received:
    1,169
    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
    Supporting Member

    Joined:
    Nov 1, 2008
    Messages:
    13,534
    Likes Received:
    10,525
    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 Contributing Member

    Joined:
    Jan 1, 2001
    Messages:
    29,492
    Likes Received:
    13,609
    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 Contributing Member

    Joined:
    Oct 27, 1999
    Messages:
    62,615
    Likes Received:
    56,405
    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 Contributing Member

    Joined:
    Oct 27, 1999
    Messages:
    62,615
    Likes Received:
    56,405
    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
    Supporting Member

    Joined:
    Nov 1, 2008
    Messages:
    13,534
    Likes Received:
    10,525
    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

    Joined:
    Jul 17, 2006
    Messages:
    90,994
    Likes Received:
    43,847
    New Digger!
     
    #40 daywalker02, Jul 26, 2017
    Nook likes this.
(You must log in or sign up to post here.)
Page 2 of 6

Share This Page

Toggle Width
Style
ClutchFans Original

  • About ClutchFans

    Since 1996, ClutchFans has been loud and proud covering the Houston Rockets, helping set an industry standard for team fan sites. The forums have been a home for Houston sports fans as well as basketball fanatics around the globe.

  • Rockets Content

  • Support ClutchFans!

    If you find that ClutchFans is a valuable resource for you, please consider becoming a Supporting Member. Supporting Members can upload photos and attachments directly to their posts, customize their user title and more. Gold Supporters see zero ads!


    Upgrade Now