Since the FEDS is now buying "Distressed Assets", maybe they will buy Tilman's Junk assets and Junk Notes at 20% interest rate so he won't have to sell the team
Rockets are lottery bound team after Tilman dump Gordon salary and let Tucker walk. Gordon’s productivity ratio is negative. Tilman can use 76 million dollars to buy 20 mansions,
How about comparing India to the US then. India has around 4x the population of the US and is right next to China. But they have less than 200 deaths from the coronavirus compared to almost 20,000 in the US. The prime minister of India has a pretty racist attitude towards minorities in his country too but unlike Trump at least he is competent and listens to scientists when it matters. If Trump took the same approach as India and acted early he could of kept the death toll down in the low hundreds too. But instead of listening to doctors, scientists, military officials, intelligence officers, and even a few members of his cabinet who all tried to warn him, he choose to listen to the likes of Rush Limbaugh and idiot family members like Trump Jr and Jared Kushner who said the virus was a hoax or no big deal.
Go on... Is there something about Tilmans balance sheet or actions that gives you this level of confidence?
Tilman himself just confirmed that he's BROKE AF!!! Tilman said he got 6 months left before he goes BROKE AF, even after selling 15% interest notes to stay alive for 6 more months. His only assets that is worth something and he can sell is the Rockets https://www.mediaite.com/news/billi...oyees-a-favor-by-furloughing-them-so-quickly/
Just heard Brian Windhoarst on Fox Sports radio saying Tilman will probably have to sell if NBA doesn't open up again this year. He also said Tilman is going to hold out as long as possible and that Rockets would be the last asset he's going to sell as a matter of pride. He said in 2008-2010 recession, Sixers and Pelicans had to be sold. Mentioned the Heats owner also hit hard because he owns Cruise Line, but he'll be okay because he bought the Heats in the 1980's and didn't have to overpaid with $2billion. Worst news is, and he said this was all Speculation, he does not have any source for this news: The guy that tried to buy a team and move to Seattle is actually worth 30% more after Pandemic because he took the virus seriously and sold all his stocks and short the market in Feb and March.
" “Give us an idea of how much cash is going out the window and what you need to sustain it,” Kilmeade said. “This is what people don’t understand, is we all pay today, yesterday’s bills with today’s money,” Fertitta explained. And when we just got shut down in a 48 hour period, you still have a payroll and severance, $100 million for me because my payroll is $1.5 billion a year. Which is done now, but my cash burn today is still $2 million a day, which is unfathomable, but that’s why we’ve got to stay liquid. I went out and did some finances this week that will take me to the end of the year.”
4 months cash burn 240 million (2 times 120 days) Interest, property tax, contracts, overhead cost will have to get a new loan in August, for instance Contract with CPA firm Employees filed lawsuits Maintenance contracts Construction or repair contracts.
Less Alexander is a lucky dude. Purchased the Rockets and wins 2 championships. Sells the Rockets and avoids what’s going on. He must have had some inside info lol
Also placed his 2 Condo in NYC on the market before the collapse. Don't buy nuthin from this guy!!!! https://therealdeal.com/2018/07/18/...n-rockets-heres-how-he-fared-at-the-baccarat/ https://www.cottagesgardens.com/hou...lie-alexander-seeks-68m-for-2-nyc-residences/
He’s not lucky He’s really good at being a Wall Street trader and working with bonds and loans He doesn’t get into a business for love Just for money
i wish the interviewer had squeezed him for details on the parameters that were used to project him surviving this until the end of the year. Such as: * When are the restrictions lifted on the hospitality industry? * How much lower will sales be versus the comparable time periods from last year? * What are the additional costs for changed business practices due to more health/sanitation awareness across the country? * What is the financial impact on the NBA for the next 9 months? * Etc If Fertitta used optimistic projections on the above when he should have used modest to maybe even pessimistic projections, then he won't make it to the end of the year.
Sales could drop 83% in Q2 with restriction lifted in Q3. If Tilman has 250 million cash, he can only survive 4 months. cash burn = 2 million a day 2 million * 120 days = 240 million
