Please explain how any of that shows up in the club's bottom line. I'm curious to see your take on it.
Are you kidding, the franchise is a lot more valuable with Yao and the Chinese market following it, probably as much as $200 million in additional value. If it were my team, I would be looking to cash out now. DD
It was an honest question. What is it that creates that $200 million in value? It isn't jersey sales. I don't know how international TV contracts work. Chinese fans don't buy tickets to games. Endorsements to players don't show up in the club's account.
I really don't understand how he could be out this long. I mean the 'injury' didn't look that serious at all.
It is the perceived value, and the fact that the Chinese market loves the team because of Yao, all the shoe contracts, the endoresment deals the opportunities for Les to cash in with this investments IN the chinese market. Yao is a HUGE cash cow for Les personally.....HUGE ! DD
apart from royalties... mechandise / tv contracts,.... sponsorships the Carrot for Les as a business man is sponsorships and networks as basketball is no.1 in china and Yao is no.1 personality over there. Imagine America only has basketball.as the main team sport. and you have the most popular player in the game Yao is the Jordan in china with no other rival...
The Russian billionare brought the nets... Chinese billionaires would push up the value of the Houston rockets if its sold. !!!! If Les trades Yao.... you wipe the value of the franchise...
good question. i've seen differing figures of the estimated value. how much ends up on the Rockets books seems like pure guesswork.
Yea, I do not get this at all. It seems a bit weird... Maybe we are trading Yao for a player or a package that contains a player that becomes tradeable Wednesday....
We've survived pretty well before Yao, and the Rockets will be fine when Yao leaves, which he obviously will someday. You clearly have no idea what you're talking, and are why YOF are so annoying.
The ones who benefit the most from yao ming isn't the rockets, but the NBA organization and Les Alexander. The NBA benefitted from exposure to more than 1billion people instantly, and the tv contracts and merchandise sales those 1billion fans generate. Les benefitted from the clout and edge Yao gives him over other "nameless" white investors. I guess you can also put Yao Ming's teammates as beneficiaries, since they get shoe contracts they wouldn't otherwise have gotten.
I'm not sure about TV contracts (but I doubt that the Rockets see very much of that money besides some fixed amount, too), but I know the Rockets don't get any royalties from merchandise sales. At least not directly. Merchandise revenue is split evenly among all 30 teams. No one has really given a good answer to the guy's question because know one really seems to know. It's all just a bunch of fluffy speculation. I'd love to see an actual professionally written article with research and documentation showing how Les really makes money off of China. I mean I'm not saying he doesn't, maybe he makes a crapload of it, but I'm just not convinced exactly how, or how much. I guess I could see the Rockets making money off of team endorsements, but that seems like something that would be split up amongst the league also. I'm not sure.
Of course they all make money off Chinese sponsors. How many banners and advertisements do you see with Chinese characters at the Toyota Center? The Rockets are China's official NBA team, which means more $$$ for Les and Stern.
Sorry sir, but it is you who are clueless, he was right. The value of the Rocket's franchise overall has a direct proportional link to Yao being on the team. I estimate as much as $200 million more because of it. DD
Wow, that much. I think the guy's an idiot for calling you a YOF but I also think you are over rating his value of Yao a bit. At least in terms of team worth. If so the value of the Rockets had depreciated at least 100 million just wondering if Yao will ever return to form. ANd If I am Les and Yao comes back healthy and we make the playoffs the time to sale is now.
While Yao is on the team he still has all of China's attention, for product sales, and Les being able to gain leverage into a difficult market. I guarantee Les wants Yao around for that reason alone.....he is a businessman. And, if it were me, I would probably cash out, unless I knew that keeping Yao around would allow me to continue to gain market in China, then, no matter how much b****ing and moaning went on by the fans, I would keep him at all costs. DD
No. The Rockets today are ranked 5th in team value according to Forbes. (It was published just about a year ago now, should be releasing a new one soon.) http://www.forbes.com/lists/2009/32/basketball-values-09_NBA-Team-Valuations_Rank.html If the Rockets were worth $200 m less, that would put us on par with the Nets (pre-Prokhorov -- based on his purchase, Forbes underestimated their value), T-Wolves, Hornets, Grizzlies, and Bucks. Unless you think the Rockets would potentially be up for contraction if Yao were not here, it's not the case. Further, the Rockets pre-Yao were ranked 8th (keep in mind, this was post-Hakeem, wandering the desert Rockets): http://web.archive.org/web/20020307185030/www.forbes.com/forbes/2002/0204/062tab2.html If they were ranked 8th today, that would represent a value decline of about $40 m. Much of the value of a team is based on the arena deal it holds, and the Rockets secured the deal for the Toyota Center before Yao became a reality. Nowhere near a $200 m impact.
Nike, I am thinking in a much broader manner. The number is a pure guess, but we can agree the franchise is more valuable with Yao than without, and Les gets into China in his other ventures because of Yao which is where I think Les will not let him go. I think Yao is worth MILLIONS to Les personally... DD
