Most of the US runs on borrowed money and ignore risk management strategies altogether. In the last 4 years, Trump even forced FEDs to reduce the interest rates and with so much cheap money floating around, men like Tilman would "invest" more than they can handle. It should be of no surprise then why billionaires love the American system even more during Donald Trump in office. But when **** happens, Govt rescues them and this cycle continues. Remember when Tilman literally criticizing and begging the govt for stimulus on CNBC during the early pandemic? No businessmen/women should ever be called billionaires if they ask the government to rescue them, period!
If Tilman truly loves the Rockets, he needs to sell the team. Do I believe he has always been a fan of the team? Yes. Was it his dream to own the team? Yes. It’s just not enough at this point. With all that has happened he’s just in over his head. Trading Harden right now would most likely wreck the value of this franchise further. So don’t do it. Tilman, IF you love the Rockets check your ego at the door and do the right thing. Sell this team to someone who has the money, who’ll invest it wisely and keep the team In Houston.
It is not "unforeseen what a pandemic can do". Pandemic is an excuse for ignoring risk management strategies because our government always bails them out. The system is flawed and businessmen like Tilman ignore the crisis like 2008 due to greed and cheap money. After witnessing such big crisis only about 10 years ago (housing bubble) how can any firm not foresee and equip themselves for a rainy day? It was not even a full 1-2 months of the pandemic that Tilman came on tv asking for govt bailout! And while the rest of the world decides to shut down businesses for 1-2 months to control the spread, his pal in the White House called it a hoax and would not even tell people to wear a damn mask.
"Fertitta’s woes come during a rocky period for him as owner of the Rockets. Tilman has reportedly weighed reducing the NBA team’s payroll as the pandemic continues to crush ticket sales — putting it on track to lose an estimated $100 million to $120 million if fans do not return this season, according to a sports banking source." This is a genuine concern. There are some around the organization and in the basketball business that believe that the Rockets will be gutted at the trading deadline if the financial situation isn't better. That is to say, that Tilman would attempt to move everything of value for future draft picks and short term contracts and sit at the salary minimum for a year or two. Such a scenario would obviously include moving Harden, but could also involve moving Wood to get out of an unsavory contract...... Codman was likely alluding to this. I don't think that is going to happen, but I would not be shocked either. While it is true that Tilman is used to billion dollar deals, a loss of 50-100 million would be massive to him under the circumstances.
Enlightening. It all makes sense. With the pandemic and the lack of cash flowing around since we’ve been scaling back on cash in the system, money laundering schemes have taken a major hit... I mean major. With the pandemic no one really uses cash anymore... everything through electronic transactions. Hence Tillman’s broke since he is leveraged through these cash businesses! Now, he’s trying to keep from being bought/bailed out through the stock market? LOL!!! Too bad he cut all ties with China.,.. for now. They’re the only ones who can throw around billions like nobody’s business with their fake economy on the backs of slavery.
This gives me hope! Sell the team, Tildo! It would make you a Houston Legend! I will eat Landry's food for 7 days straight if you sell the team.
https://www.google.com/amp/s/www.te...tilman-fertitta-two-billion-dollar-buyer/amp/ Man I must be behind because I had no idea the full details of how he purchased the Rox. In that article he borrowed 250 million, took 275 million from Alexander, and sold corporate bonds on his companies for 1.4 billion. The only liquid cash he put up was 300 million. Is it common in the NBA for sales to be so leveraged?
wow.. makes me wonder.. should we have a rally to invest in a new owner? Because... I won’t be able to deal
What happens if an NBA can't pay the players checks? Does the league jump in to help out? Do they take over like they did in New Orleans and buy the owner out?
And this is the most concerning/important part of the harden thing, if harden doesn’t trust tillman and doesn’t want to play for a team he owns, a winning record isn’t going to change that. It’s the hard about about when a superstar decides his time anywhere is done
I really don't think it will get to that point, however it has been odd to hear people that are at least somewhat in the know discuss it as a possibility. What I can say is that unless that Rockets are REALLY looking like a team to win a championship, I don't see the Rockets remaining at their current salary number of roughly 140 million when the salary cap is roughly 110 million. The luxury tax is at 133 million. We will almost certainly get below the 133 million number and possibly even lower.
Yes and no. If the Rockets are a team that looks like they can compete (seriously) for a title, it is possible that Harden finishes the year and depending on what the team does, asks out again this summer. The Harden situation is a little different than most. He doesn't want to leave the city of Houston as he is used to it, has business interests and likes the idea of being a favorite of the fan base. The problem is that the organization has been gutted by ownership and ownership has not shown any real interest in paying the tax. This is going to be a sink or swim situation. If the Rockets trade to get under the luxury tax, then that will likely trigger Harden wanting out more. As it is, Tilman Fertitta is HEAVILY leveraged. This is why I have said that I could see the Rockets not want to take back long term salary. The Rockets can save 30 million a year by cutting from the 140 million number down to right below the cap number, and then there is the savings from the actual luxury tax. If Tilman is willing to guy his team for a few years he could save 40 million or more per season for a few seasons. For someone trying to hold everything together, than could be a huge amount.
Tilman should never been allowed to be the owner since he had to take out a massive loan and sell off stocks and whatnot to afford it. Should’ve gone to a investment group like Mutombo’s.
Seems like there needs to be some sort of owner requirements in terms of net worth. Fertitta spent what 25-50% of his net worth on the Rockets purchase? I mean I know he still had 2Bs to play with and in a normal environment that should have been enough, but its kind of a bad look when you are recycling last years cups and then scratching off hot dogs and kiddy prizes from ticket packages that had become a staple for many family orientated Rocket fans. Dude should just sell to someone who can afford the team maybe Richard Kinder would be interested. Still fascinating to see the Mavs flourish under Cuban when he had a similar net worth to Fertitta. Culture? (lol)
For every post about trading quality players to duck the luxury tax you are all forgetting something. Season Ticket Holders were essentially given a gap year. When we called to cancel (not a chance I'm going to games during this pandemic), they gave us the option to hit pause for the season and return next year. If Tilman visibly punts this year, hundreds (if not thousands) of paying customers are going to back out of their commitment. The economy is already going to be in the tank for the 2021/22 season, Tilman needs to pretend to be willing to spend this year to ensure that people return.
I was shocked that 1) Silver and the other owners approved this much debt to buy a franchise and 2) that Tilman wasn't the highest bidder yet his high leverage offer was accepted. Something doesn't add up!