[Forbes] Rockets 6th most valuable franchise in the NBA

I'm glad the ratings are suffering.

 

64 million in profit with no TV deal is outrageous, although to be fair last year was an abnormally low salary obligations year, although we did have the big hit on the scoreboard and new lockerroom (unclear what year those expenses are hitting)

I am absolutely certain Les will go into the luxury tax for this team.

 

Moved up 1 spot and topped the Heat and Mavs

 

This is why I don't complain about the douchebag corporate no-shows at Toyota Center even though they piss me off. Le$ knows how to make money off of basketball in this town.

 

I remember seeing on the news that there was a little uproar in H-Town regarding how the scoreboard and other renovations were paid for by the Rockets. Part of the all-star bid was won due to a proposal signed off by city officials for renovations to accommodate the event, and a good chunk of that money went into the scoreboard.

Not sure about the locker room though. although its a good possibility that some if not a good chunk of it was tax deductible for 2013.

In the end though, 64 million in profit without a TV deal (and probably actually LOSING money from what the Rockets had invested) is pretty ridiculous. Les doesn't have the deepest pockets of all the owners, but he might be the best when it comes to having his head in the game of the finances of the business side of the Rockets.

For most owners, their NBA team is a luxury toy they can play around with in their spare time. For Les Alexander... its serious business, and that's why you have to think that there must be serious money to be made in this TV deal they are trying to get done for the Rockets or else they wouldn't dare risk going multiple seasons without full carriage.

 

HOU has a better record than the five teams ranked higher--NY, LAL, CHI, BOS, BKN

 

All major markets too.

 

I hope comcast is still losing subscribers

 

Those days are pretty much over.

 

Spurs have the 2nd best record. They'll never be a a big player but very good for a small market team.

 

Makes sense. Rockets franchise is about the 6th greatest in the league.

 

List is a combination of success and market size.

 

Give us back our Rockets.

Go away CSN Houston.

 

Man I'd like to know how the valuation model works. $64 million in profit and a value of $775 million. That means if someone were to buy it for $775 million they'd only be getting something like 8-9% ROI.

Part of that value must come from a certainty of growth in the franchise asset. Otherwise who'd pay for that kind of business investment?

 

You're right in that I am sure a valuation model would take into account the TV deal eventually sorting itself how, shooting profits upwards.

That being said, 8-9% ROI is already not that bad of an investment...esp. when you get the side benefit of saying you OWN your own basketball team. That's cooler for the uber rich than saying you own facebook stock

 

64 mil and they cannot even get some new jerseys?

 

Belive it or not...Raptor will be 3rd or 4th in 2 years.

For Houston evalutaion, it os very low end of what for forbies sees,it rough draft based solely on net profit(x12), nothing for future growth or other revenue expecation

 

With all the star marketing power we have now I bet that number is going to climb and climb.