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[NY post] Tilman not good at business

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by larsv8, Jan 4, 2021.

  1. Invisible Fan

    Invisible Fan Insider Newsletter™ 2X Diamond Member

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    Les supposedly chose his deal over a "bigger one".

    The cancelation refund, and cash/loan servicing probably ended up with Les making more.
     
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  2. BallSoHarden

    BallSoHarden Member

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    This is the article I have been waiting for. I have speculated in depth for the past year+ on CF, and we finally have more detail on how he financed the Rockets purchase. I figured it was by taking on debt on one of his hotels and using the property as collateral. I was also aware of his selling equity of digital assets and it was the one thing that I thought may save him, and it appears both of those look grim, if his recent IPO results in a stock that is crushed the street is not going to trust him and he will have trouble raising public equity, which is seems is the case.

    I was giving him the benefit of the doubt, because he has billions in assets under his direct control, but this is pretty much what I expected. There are numerous reasons he will not be able to raise more equity, and he knows he has all of his eggs in one basket and was making a last attempt at diversifying and then a pandemic hit. There are opportunities to invest in Vegas, and wall street seems to be confident in gaming returning to profitability if it hasn't already. MGM stock for example is at its pre-pandemic price, literally a 300%+ return from the March 2020 lows, but if I were managing a fund, i would steer clear of what Tilman is offering.

    Cutting payroll may end up being a massive short-sighted mistake. It can save a few dollars in the short term, but when you do that and your star player wants to leave, the value of your team will plummet. NBA team valuation is tied to players under contract just as much as it is to distribution revenue. After reading this article, it has confirmed what I believed, he will likely need to start looking at selling majority interests in a business, either casino/restaurants, or the Rockets, and possibly both, not just minority equity interests which can be wiped out in a bankruptcy scenario. Once the equity markets are tapped, he will next go to debt markets, and that is when it will possibly spiral when he won't be able to make interest payments anymore.

    If there is a prop bet at the Nugget sportsbook, I would say the Rockets have a new owner within 18 months, or the NBA takes control. It is possible that the secured lenders of the Golden Nugget may end up being the new owners?
     
    #122 BallSoHarden, Jan 5, 2021
    Last edited: Jan 5, 2021
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  3. heypartner

    heypartner Contributing Member

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    well, I guess we learned, don't trust the NY Post when it comes to their Wall Street sources. First off, it wasn't the restaurants and casinos, just the Online Gaming license.

    A Wall Street analyst gave GNOG a buy recommendation, and the stock came out strong.
    • GNOG is at $23 per share.
    • Tilman owns 4,090,000 shares.
    • And that's after the merger absorbed $300m in debt from the Golden Nugget, or thereabouts.
    • The company (Landcadia Holdings) that did the merger and absorbed the debt owns 31,000,000 shares of GNOG
    this deal was like free money, considering all Tilman did was take his Online Gaming License public.
    seems he had this planned the moment he took out the April debt, as the merger talks started then.
     
    Os Trigonum likes this.
  4. clos4life

    clos4life Contributing Member

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    Fake billionaire, hope he sells the team.
     
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  5. Sweet Lou 4 2

    Sweet Lou 4 2 Contributing Member
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    What's worse than him not being good at business, is him not knowing anything about the business of basketball.
     
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  6. YOLO

    YOLO Member

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    It’s not even just the business side of basketball. It’s the actual basketball game itself. When he tries to speak about players and the game it’s cringeworthy
     
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  7. ParaSolid

    ParaSolid Member

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    Why the hell did he buy the team
     
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  8. Buck Turgidson

    Buck Turgidson Mineshaft Enthusiast

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    3 card monty
     
  9. HP3

    HP3 Member

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    Guess who helped him get the team???? Rafael "Peanut head" Stone.
     
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  10. Os Trigonum

    Os Trigonum Houston Knicks fan
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    AKA

    115488684.jpg
     
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  11. ElPigto

    ElPigto Member
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    Haha, if you own a house that has equity, you could start by taking out the full value of the equity (or as much as the bank is willing to lend you) via HELOC and go from there.
     
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  12. SamFisher

    SamFisher Contributing Member
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    Then put it all in Dogecoin and either you get rich or never work again, or you go bust.

    No matter which of these two paths you take, either way at some point in the future you end up railing against fiat money all the time, you lose all your real life friends, and you end up getting arrested after storming the capitol when the great reveal you were promised turns out to be invented by some degenerate old piece of **** in the philippines and professional Russian trolls
     
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  13. Zergling

    Zergling Member

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    Jack Easterby is getting all the criticism in Houston since this is a football town, but Fertitta deserves just as much if not more. He single-handedly dismantled at 65 win team that was a hamstring away from a title. Unbelievable.
     
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  14. clos4life

    clos4life Contributing Member

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    And openly took credit for it!
     
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  15. Texanasiafan

    Texanasiafan Member

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    So in recent H-town history,

    both sport teams owners that are based on retailing business looked like will fail miserably.

    So probably our next owner should either own a company like Google or Netflix or at least someone good at grabbing money from companies like Enron.

    [​IMG]
     
  16. Supermac34

    Supermac34 President, Von Wafer Fan Club

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    I think people are missing the fact that there is currently infinite free money available for companies that are in debt. If Landry's debt, or Tillman's debt payments get too big to pay, he'll simply get more financing from the trillions in cash laying around. There'll be plenty of low cost debt available with hotel, casino, NBA team, yacht assets to back it up. He's not going out of business and he'll restructure his debt. Don't get your hopes up.
     
  17. Agent94

    Agent94 Member

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    This seems like some Enron stuff. One business controlled by Fertitta buys part of another Fertitta company and he pockets $50 mill.
     
  18. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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  19. heypartner

    heypartner Contributing Member

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    "Enron's leadership fooled regulators with fake holdings and off-the-books accounting practices"

    I think the main play here was Fertitta was having trouble getting pandemic financing, so he financed himself via a fancy IPO. imo, it's rather brilliant.

    What Landcadia is and isn't is over my head. But here is the IPO announcement of Landcadia back in May, making $316m

    https://www.prnewswire.com/news-rel...-underwriters-over-allotment-o-300847346.html

    The proceeds of the IPO played a big role in the loan to GNI under the high-interest terms we've heard about. Landcadia latter merged with the owning entity of the gaming license and changed their publicly trading name to GNOG.

    so, GNI still needs to pay back GNOG...is my understanding

    here's Landcadia's acquisition of GNOG.

    https://www.prnewswire.com/news-rel...of-golden-nugget-online-gaming-301199064.html
     
  20. KingCheetah

    KingCheetah Contributing Member

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    G-NOG's new album is straight fire.
     

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