Cash Cow? Looking for details...

you're asserting that

1, yao is a top-10 player in the league;
2. he has value (and high).

just to let you know, many would debate on both fiercely. a word of caution.

 

Yup, I never seem to understand what his exact point is.
It's simple. If you replace Yao Ming with say, Gasol. And let's suppose the Rockets and the Lakers both stays exactly where they are in terms of win-loss percentages. Now, I'd bet Rockets franchise value would drop, maybe not by much initially, and Lakers value would increase. That's where Yao's extra cashcow-ness lies - even strictly in terms of franchise value. More importantly, suppose Yao goes to the Lakers and Lakers has a bad season, say winning only 40 games a year, Yao Ming's presence still gets you those billboard ads without discount; now say Gasol's Rockets wins 40 games a year, would TC be able to sell out ads space without dropping the price?

 

Yao is the center of this year's second team. So, he is one of the 10 best players in the league. Is there any problems with that?

 

You're not understanding the point of the thread. There's a difference between Yao being a cash cow for the league, and him being a cash cow for the Rockets. These are two separate ideas.

 

In addition to the quote from Toyota's corporate marketing manager that's already been posted, see article below.

http://www.time.com/time/magazine/article/0,9171,1006018,00.html

 

^^yup, iirc, yao's image had something to do with toyota's decision at the time. wonder if it's still in the archives of the chronicle.

 

It probably does seeing everyone wants to get into china now. I wonder if that deal is bigger than the other naming rights deal. Also, since they signed for 20 yrs, thats a binding contract that they have to pay regardless. If les dumped yao, he would still get his 5m per for naming rights.

 

anybody who has worked in China knows a Chinese word "Guanxi". It is similar to "networking" in North America.

Have you ever tried to find a job? Have you ever read any tips of job searching? What is the first tip normally listed? Networking! And do you know how many jobs was filled inside the company?

Guanxi has much much power in China. I can say that without guanxi, you want to do business in China? hehe, I don't want to tell you what's going on. If you don't believe, you can try. If you want me to show you some statistics to prove the power of Guanxi. Sorry, I can't. Believe it or not, up to you.

Without Yao's influence in China, Les wants to establish/expand any his business in China? It would be a joke.

What's Yao's influence? If you can read Chiense, go to any Chinese website and see how many reports about Yao and Rox. Without Yao? Who the he** knows Rox, Les even Houston.

Soemboday might say that no matter how many audience in China, Rox get the same share of the broadcasting. Well, if you say that, no wonder you don't make as much money as Les. Do you know how much money you could make if you can influence billions of people? Do you know why companies pay that much money for Ads on super bowl game? If you know, then bingo. If you still don't understand, just never mind.

 

naming rights deals are usually signed at that length, though almost no franchise player could last that long. and i don't know if the money toyota paid was more than what's in a usual deal, but you'd think they were the highest bidder at the time.

but all this "exactly how much money yao brings to les" discussion is really insignificant in my mind. like i said, yao's value roots in his bball skills and his personality, otherwise he's just another yi or wang zhizhi (sp?). and it even has less to do with the bball discussion taking place on this bbs in terms of how to improve this team.

 

you just don't get it! Without Yao, Toyota wouldn't pay money at all. With Yao Les got a 20-year contract from Toyota! This is the point. And the Toyota was just one of the deals Les got because of Yao.

Yes. If Yao is traded, Toyota will still pay money for more than 10 years. However, you are not Les. You would be satisfied with that much Toyota is paying every year. Les wants his business to expand and have more deals!

Now, do you know the point? and do you know the difference between you and Les?

 

So i guess Toyota was the only people willing to pay for naming rights? There are 2 american airlines arenas in the nba. The sbc/at&t enter in sa. The United center in chicago, ever heard of that place? Everyone wants to get into to china anyway they can. They have the largest consumer base in the world, so if it means overpaying for a shot, thats what they will do. I dont care what the name of the building is, the suites are what brings in the money, period. Its not naming rights, its lux boxes, concessions, parking, local tv/radio/cable deals. Yao is marketable because he's good, not because he's from china.

 

before I end wasting my time with you. I want to say that you do know there is a word "bid"? Will you sell a product with less money or shorter term? No matter how stupid you are, I believe you won't. Because of Yao, Les got the longest contract or most money. So, that is it. End of talk. I refuse to talk to stone-headed people.

 

Here's another article (from 2004): http://www.businessweek.com/magazine/content/04_43/photo_essay/0443yao_7.htm?thisSpeed=6000

How about the doubters and naysayers come up with evidence how Yao does NOT add to Les' bottom line?

http://sports.espn.go.com/espn/sportsbusiness/news/story?page=stadiumnames

Hard to compare apples to apples without knowing when a deal was signed, but just looking at list, only the Phillips Arena in Atlanta (what the hell are they thinking?), AA Center in Dallas (local sponsor) and the Staples Center in LA (it's LA) cost more (and FedEx Forum in Memphis (local sponsor) comes close, and that was part of the deal that brought the Grizzlies out to Memphis IIRC).

 

Les invested HK$234.5 million in Anta back in 2007.
Today Anta share price is Hong Kong worth more than 8.2 dollars.
So, even in the financial crisis happening in the world.
Les still double his $234.5 million by invested Chinese company.


Link: http://www.chinadaily.com.cn/bizchina/2007-06/20/content_898643.htm

Garment: Anta plans $405m IPO
(Bloomberg)
Updated: 2007-06-20 16:47

Anta Sports Products Ltd, China's largest maker of athletic shoes, may raise HK$3.17 billion (US$405 million) in a share sale that attracted Houston Rockets' owner Leslie Alexander, two people familiar with the deal said.

The company will sell 600 million new shares at HK$4.28 to HK$5.28 each in Hong Kong, said the people, declining to be named before an official statement. The initial public offering values Anta, which tripled profit last year, at as much as US$1.6 billion.

Alexander will invest HK$234.5 million in the IPO, the people said.

"We like the market-leading position that Anta has created in the sporting goods field," said Andy Mantel, managing director at Pacific Sun Investment Management Ltd. in Hong Kong, adding that he's interested in buying the stock.

Morgan Stanley is lead underwriter for the IPO.

Anta makes products under its own brand and supplies other makers of sports shoes and clothing. Its sales surged 87 percent last year to 1.25 billion yuan. The family-owned company tripled net income to 147.4 million yuan.

Chinese consumer-goods firms including Belle International Holdings and Intime Department Store (Group) Co have gone public this year, taking advantage of soaring valuations to raise funds ahead of the Olympics. The nation's sportswear market is growing about 23 percent annually, Daiwa Securities Group Inc. estimates.

 

What that red thing by your name for?

 

Well maybe Les has a deal with China under the table which makes Yao untradable?

 

Could be just like all those 0 bid contracts halliburton got from the government. At least it helps knowing George R Brown and Lyndon Johnson had something to do with the war money. Everyone wants to get into china like its the new africa.

 

you just got pwned here. man up and admit it.

 

Pwned, lol, i guess being stone headed.