Using debt to finance a purchase doesn’t make you worth more. Equity value is equity value. It’s the same math when buying a house with a mortgage. In either case clearly the math was pre sale and an estimate. They were probably light half a million+ on Les’ net worth from being low on their estimate of the Rockets value.
That actually sounds like the kind of thing the league would bend over backwards to facilitate. LeBron on the Lakers with enough talent to challenge for the title is Adam Silver's nightly wet dream.
Hopefully Tilman knew what he was getting into short-term when he bought this team. I'm pretty sure he did his due diligence and understands the situation thoroughtly Then again, it would be scary if the possible fulfillment of his 30-year quest to buy the team blinded him from the huge near-term financial obligations.
Any more names rockets could be targeting if we miss on all the big fish @cyberx ? Jimmy butler would be nice but anybody else?
Tyreke Evans strikes me as a candidate to take the place of EGO if he gets traded. The 6th man. He could still fill a roll with EGO too I suppose. The appeal of Evans on the Rockets is he fills the need of a swingman that can create their own shot and create a shot for others while at the same time play in our switching defensive style. The Warriors are tough to guard with multiple playmakers. Adding Evans would be another playmaker for the Rockets which would be nice as it could help give Harden/CP some rest at time creating the offense. Feels like Evans would have better financial solutions with the FULL MLE from other teams vs the taxpayer MLE from the Rockets. But perhaps a chance at a ring is appealing. Kudos to @cyberx for the Evans tip!
I guess if they renounce the rights to Randle in this example, he would then go from an RFA to a UFA?
I get that. The bonds mature in 20yrs or something. He has to pay that back. All I meant was why Tilman is valued now at $4b, when prior Forbes had him at less than $2n. And we also know he released the sell of new corporate bonds to make that purchase. I'm sure you know more about financing and acccounting then me. How would you explain their increase?
How much value do you put on "opportunity". And by "opportunity" I mean a legitimate chance to win the championship. Rockets were very close this year and with one or two additional pieces/moves, they could win it next year, against one of the best teams ever constructed. You don't get that kind of chance very often. The last time we went to the Finals was 23 years ago. Look at how many teams have won the championship over the last decades. A handful. While, it is easy for me to scoff at $100s of millions since it is not my money, I wish Les would have a talk with Tillman and explain to him how great it feels to win the whole thing and how rare it is to even have an opportunity to go at it. Tilman might not get this chance for decades if he lasts that long. As Jimmy Butler said and understands, a lot of things can happen any season and even in one or two years down the road things can go from great to really bad. When you are this close, and you have such a great team, and you are a COMPETITIVE owner, you HAVE to bite the bullet and go for it. Because if things dont work out, he will have plenty of years to make a lot of money anyways. So again, let me ask you this. If Tilman was given an average team but then he could outright BUY an opportunity to go to the FInals and win the championship, how much would he be willing to spend on that opportunity? $100 million? $200 million? $300 million? Cabela's contract is the cost of that opportunity. You dont lose him or even let him walk for nothing. It will feed a really bad habit at a really critical time. I would retain Capeal just based on his talent alone. He is going to be even better and a big man that is talented like him and improving can always be traded away if things start to fall apart. Also, how sad would it be to lose Capela because of money and we would still be paying Ryan Anderson to sit on the bench and do nothing. *sigh*
Even though a lot of it is public domain type stuff... a lot of it is still private. I think they just way underestimated the value of the rockets and were also otherwise off. Even the current number is just a guess and only directionally accurate.
I'm not as optimistic as you are, but I do hope for the best for the Rockets. His defense and shot blocking has gotten better especially the latter part. On offense, he has made some progress, but it's relatively minor.
If he does get the max from another team apart from the Rockets, I'm okay with it. A cheaper center/ PF can give us 70-75 percent of his defensive production. The Rockets can also sign Hartenstein on top of that.
On the other hand - is there anything worse than being worth billions and still be strapped for cash? That seems like it would be the worst.
