Well, besides the millions of people that watch the Rockets solely because Yao is on the team (you're crazy if you don't think that brings in a good chunk of change), there's the Chinese companies that sponsor the Rockets (just look around Toyota Center). I've also heard that Les has money in a few Chinese companies. And then there's the shoe deals for Yao's teammates, many of whom would never get a shoe deal from an American shoe company.
Les alexander is not a basketball owner 100% of the time. I've heard he has invested in many business related opportunities in china.
interesting but having Tracy Mcgrady added to the team during that span effects those numbers. He clearly had huge domestic impact in terms of shoe sales, jerseys etc. I believe his first year in houston he was #2 in jersey sales behind shaq. Yao could be attributed to a great portion of that near 200 million dollar difference though. Either way he makes a lot of advertising, partnership money for Les and for that reason alone (even he was a total stiff on the court) Les would want him on the team
I don't know the exact number for the net benefit Yao brings. But here is some breakdown of team value. Team Value of Houston Rockets It's quite obvious that all kinds of income jumped in 2004, and it's been improving ever since. So it's fair to say that Yao contributes to at least part of that. Also, as many said that shoe deals for his teammates are clear benefit too. However, what other business association Yao bring or does not bring to Les is unknown. On court and off court contribution are both keys for player evaluation and contract negotiation. But on the end, player's value is mainly decided on the court. That's why Yi as Yao's countryman, albeit more popular among young people in China and more athletic, won't see a big contract any time soon with current play. On the end, it will be a deal between Yao and Rockets, pure professional. No hard feelings for both parties, if a deal is agreed upon over how long or how much. But I definitely think that both parties want to do their parts to ensure Yao stays a Rocket.
So does that mean that the Rocket's value will sink once Yao retires, because the logical conclusion would be for Les to sell the team if that were true? No, I think it's more obtuse than that. I think Yao has been a conduit that allowed Les to meet certain Chinese interest and develop relationships with them. Things like this are both intangible and hugely important to new markets - especially Asian markets, but I fully admit to being out of my league on this subject, so I'll simply add that there could be business deals that have been made that aren't necessarily easy to find information about - even by professionals. This isn't to imply anything sneaky, but to simply remind everyone that the lax regulations (that partially or mostly lead to the global financial collapse) make it very easy for people to keep their private business affairs, well, extremely private.
Further down in that link, it points to the Toyota Center being the "cash cow." How would McGrady shoe/jersey sales make money for Les? The increase in value seems to be tied to the Toyota Center.
None taken. Oh, and you will never see me saying "lock it up" or "Ban him". I think mods do a good enough job without a peon like myself chipping in unwarranted opinion.
You posted the same link as the guy on the last page. In that link, it explains that the Toyota Center is the cash cow.
He entertain his business associates with Rockets games. Someone like Les would be "small fish" in investing in China had he no connections to that market.
tc's naming rights was sold at something like 180 mils for 25 years? not sure if it sould sold for that much, or if toyota would be interested if yao wasn't here. it's not just the cash flow yao brings, it's also the incremental business opportunities. but even les is likely to take into consideration when he thinks how to deal with yao, for fans there's not much to do with how much $$ yao generates when it comes to evaluating him as a player imo.
I wouldn't put it out of the realm of possibility that Les could/would sell the team at some point. Insofar as whether the value of the team will just collapse after Yao retires, it depends. I definitely think some of the luster that comes with a sexy franchise will diminish, but I also I tend to believe in "long shadow" effects that come with a great business who's history can carry it. Yao's legacy, should he play his entire career with Houston, will mean some lasting effect on the franchise value that IS he Houston Rockets. Equally relevant, and incidentally enough is our BBS age old debate over YOFs and true Rocket fans. Surely, over time, we'll see more converts to being Rocket fans, if it hasn't already begun to happen in a meaningful way. That good feeling or "goodwill" can translate into a myriad ways of tangible economic value, not least of which is lasting franchise value. My two cents. theSAGE
What is the connection between Yao and Toyota? Why wouldn't they be interested sans Yao? From the link above: The Rockets financial health continues to be strong thanks to the lucrative Toyota Center. The team's $40 million in premium seat revenue is second most in the NBA behind only the Knicks.
isn't that obvious? yao not only draws chinese audience, which we didn't have before he arrived; he also draws a ton of asian audience all over the globe. looking around the league, how many other arenas are named by a foreign/asian company?
Do you have evidence that the relationship with Toyota is tied to Yao? That may be the case but I am unaware of it. And how do Asians not living in Houston and going to the Toyota Center put money in Les' pockets?
great point. we would need to know the difference in the teams worth after yao got here, but before tmac, while adjusting for inflation which i have no clue how to do.
He types faster than I do But Toyota Center is not a standalone entity, its value is based on the team. That's why I said that Yao at least contributed something to it. Look at those Chinese company advertisements, you don't see them in the Rose Garden, not saying Blazers is not a good team. You would probably say that those Chinese companies pay Toyota Center to aim at those Chinese customers, but their markets strategy exactly reflects the result - Yao brings in more viewers in Toyota Center and over TV. Again, I am not Les. So how much money Yao can bring to Les doesn't interest me at all. But I don't think DM will overpay anyone either.
connection b/w yao and toyota? i'm not 100% sure, either. but i remember reading something about the tie when they just completed tc back then and were looking for the name of the stadium. and i was just talking about the naming rights, the money toyota paid as compared to some of the other arenas. obviously, people who don't live here in houston can't attend a game in the tc regularly.
As far as I understand it, the only direct reason Yao or McGrady would increase Les' profits is by attracting more fans to the arena. I'm not sure how jersey sales beyond those sold at Toyota Center make Les richer?
