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Yao's Value

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by linzhihao, Mar 23, 2008.

  1. Blaster

    Blaster Member

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    wrong, the toyota center advertisement income is not shared.

    Besides you gotta count Battier, Hayes's shoe contact since that might be a reason why players would like to be teammate with Yao, because they could earn extra income from elsewhere.
     
  2. t_mac1

    t_mac1 Contributing Member

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    it's not marion + crap. the other poster said marion + #1 pick (which miami has a great chance at getting the #1 pick this year -> which yields a lot of potential franchise players from beasley to rose to mayo)

    again, tmac/yao aren't going anywhere. but they rarely stay healthy the whole year that we should look at potential trades if they IMPROVE the team.

    sure yao makes us a lot of money, but not as much as y'all think. look at the team's value. the cavs' value is just as high as the rockets'.

    if yao suffers another big injury next year, it's time to let him go.
     
  3. DaDakota

    DaDakota If you want to know, just ask!

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    I expect Les to sell the team in the next 3 years......to maximize his profit while Yao is here and in his prime...

    Afterall, Les is a trader by nature.

    DD
     
  4. leebigez

    leebigez Contributing Member

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    Here is a article from the seattle times nba reporter.

    The so-called small-market teams are dying a slow death, and the NBA's economic plan can't save them.
    After 23 years, the league's salary cap, heralded when introduced in 1983 as the perfect hybrid to the NFL's hard cap and Major League Baseball's free spending, is antiquated and fails to address the needs of small-market teams.
    "We need to look into and see what we can do to help all of our teams and not just those that are in the smaller markets," commissioner David Stern said last month at the NBA Board of Governors meeting. "We tried to tackle many of those concerns in this version of the CBA."
    In the first year of the current collective bargaining agreement in 2005-06, the league reported a profit of $46 million, which was a significant increase compared to the previous season, when it lost nearly $3 million.
    Despite substantial gains, only 17 of the league's 30 teams were profitable after luxury-tax payments and nearly one third of the league owners reported heavy financial losses.
    Minnesota could lose $30 million between the 2005-06 season and this season. Paul Allen surrendered the Rose Garden to Portland in 2004 by declaring it bankrupt and expects $100 million in losses the next three years. Utah claims to have lost $25 million the past two seasons.
    Before selling to Oklahoma City investors, the former Sonics ownership group said it lost more than $60 million the past five seasons. Memphis owner Michael Heisley agreed to sell his 70 percent share of his team. Comcast-Spectacor, which owns the Philadelphia 76ers, recently entertained bids.
    Understandably it's difficult for the average fan who shells out $160 for a pair of decent tickets to feel the least bit of pity or remorse for billionaire owners, who claim they're losing money.
    OK, I get that. But consider this: the product is suffering.
    You'll never hear the NBA say that, but it is. The league has stagnated and is predictable. Each season, only a handful of teams have a legitimate chance of winning the championship, which is never good for business.
    In the last 27 years, since the Bird-Magic era began in 1979, only eight teams have won the title. The Los Angeles Lakers (three) and San Antonio (three) have won six of the past eight titles.
    That type of predictability has as much to do with a broken economic structure that forces teams to give the lion's share of their salary cap to one or two players, while everyone else earns significantly less.
    Still, the most damning evidence on the failures of the NBA's salary cap is the admission by owners who are desperate for a change.
    The Times obtained portions of a letter dated Sept. 29, 2006 from eight NBA owners who pleaded with Stern to adopt revenue sharing.
    The letter states: "We are asking you to embrace this issue because the hard truth is that our current economic system works only for larger-market teams and a few teams that have extraordinary success on the court and for the latter group of teams, only when they experience extraordinary success. The rest of us are looking at significant and unacceptable annual financial losses."
    The disparity is created because teams are able to keep the profits generated from local broadcast and cable TV. Those teams in the large markets such as New York, Los Angeles and Chicago reap profits ranging from $20 million to $30 million whereas the small-market teams are believed to be around $10 million.
    Also, league-wide profits are expected to decrease this season because the NBA received a one-time consent fee of $22 million from Adidas last year. Without that windfall, small-market teams are looking at higher losses.
    The letter to Stern also says: "If appropriately managed teams can't break even, let alone make a profit, we have an economic system that requires correction. The needed correction is serious revenue sharing not just modest revenue assistance and we urge you to address this issue on an urgent basis this year."
    Allen, Heisley, Charlotte owner Bob Johnson, Milwaukee owner Herb Kohl, Utah owner Larry Miller, New Orleans owner George Shinn, Indiana owner Herb Simon and Minnesota owner Glen Taylor each signed the letter.
    Stern needs to listen to the dissident group of owners. He has got a few years until the current CBA expires and he would do well to settle the peace before it becomes corrosive and negatively affects the next negotiations with the players union.
    Stern also knows that the last thing the NBA needs is more owners selling their teams, which gives the impression that the league is unstable.
    His solution is to invade the international markets and pump new revenue streams into the sport, which is a bold and innovative concept.
    Still, it's strange he views the foreign markets as one big cash cow that's divided evenly among teams and yet he views the domestic markets as individual entities where the leagues takes a hands-off approach.
     
  5. London'sBurning

    London'sBurning Contributing Member

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    Jersey sales and other merchandise like that is spread around to all owners in the NBA. Doesn't matter how many Yao jerseys are bought, it goes to everyone. That's what I meant. As far as Toyota Center income, like I said you hear often about the home crowd isn't into it, or that there's empty seats. This was all before the 22 game win streak, and again the fans didn't even stick around to see it finish to give the team an applause for winning as much as they did.
     
  6. leebigez

    leebigez Contributing Member

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    The last paragraph is why I said people overvalue yao to he rox. I realy think les is on the verge of selling the rox to a asian entity. He's keeping cost down, the is making money and is highly visible because of yao. If you see the rox trade bjax for nothing and save the mle, its a done deal. Hell, we ad a 7.8 te and let it expire.
     
  7. No.A

    No.A New Member

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    you know how many fans of YAO, and do you know how many fans of LEBRON? it's a huge huge huge... GAP, what a stupid thinking!
     
  8. landryfans

    landryfans Member

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    No one knows how much les have made because of yao, even his accountant.

    I am sure that China government (the communist party) want to keep a good relationship with rockets and les. In a non-democracy county, it means a lot
    to china-related business.
     
  9. abc2007

    abc2007 Member

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    If you change an angle, from Yao and chinese fans' standpoint, Yao brings so much value to the rockets, but the rockets cannot help him to win a ring or even cannot pass the 1st round. What is that feeling? I believe if Yao in one of many other clubs, they can help Yao do much better than here.
     
  10. littlefish_220

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    You got one thing wrong.

    Les's assets improve dramatically in last several years because one venture business he invests brings him big money. Yao definitely elevates Rox value big, but not that big as you thought.
     
  11. heypartner

    heypartner Contributing Member

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    haha...I have to remember that one. Would like to see that written in Chinese, too.

    as for my take wrt Yao's value. Yao IS THE ROCKETS. That is his value. As a fan, you only land (if you're lucky) one franchise player every 15yrs or so. We got Yao roughly 18 yrs after Hakeem. When you land a player like this, it is your responsibility as a team owner and city of fans to not only surround that player with everything he needs to win, but to also know that this is his team, his legacy and yours are bound together...and that he shouldn't be looking at any other girls.

    So, what is Yao's value.
    How do you place a value on the player who defines the rockets?
    You place a value equal to how much you like the rockets.
    If you prefer to be fantasy league owner, you don't place much value on your franchise player.
    If you think what makes a team/city great is to share a career with Yao, so that the Rockets and Yao are one and the same, then his value = your value.

    Would you trade Houston for Dallas?
     
  12. Hottoddie

    Hottoddie Contributing Member

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    Guys,

    With the way the NBA financials are structured, Les doesn't make any more money from jersey sales & television revenues than any of the other owners.

    However, with China (& India) being the fastest growing regions in the world, having Yao associated with the Rockets presents a phenominal business opportunity for Les. It opens doors that would not be open to most U.S. businessmen. So, in that regard, I could see where Les has had the opportunity to increase his net worth. Of course, that's assuming he's made the right business decisions..

    I don't believe for a moment that we'll ever trade Yao, but with that having been said, I haven't read in this thread where anyone's actually put up what they feel Yao would be worth in a trade within the NBA.

    I personally believe that, in spite of what many offer as concerns about his health & durability, Yao would be the most sought after player in the NBA if he were suddenly made available for trade. There'll always be his detractors/blind fans that undervalue/overvalue him, but somewhere in the middle is where his true trade value lies.

    So, the first thing the Rockets would have to determine is what they'd be willing to accept in exchange for him. We'd definitely need a replacement at center &, while Alston has really stepped up this year, we could still use an upgrade at the PG position. That being said, there are some teams that have just that kind of talent available. My asking price for Yao would be 2 starters & depending upon the 2nd player, possibly draft picks.

    Portland: Aldridge, Blake or this year's #1 pick.

    Charlotte: Okafor, Felton or this year's #1 pick.

    Minnesota: Al Jefferson, Telfair or this year's #1 pick.

    I don't believe any of these would happen as listed, but I'm going to ask high & get the best deal possible.
     
  13. Hard Rock

    Hard Rock Member

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    what about the $ from Yang Jing Beer, Toyota, China Peak Shoe Co., ...? the other 29 teams share the $?? Les at least saved $ on players who signed discounted contract because the Chinese commercial deals they got; what about Chinese/Asian season tickets? revenue from the Rockets' Chinese radio show? Sold Out pre-season games in China?
     
  14. Dr. Basketball

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    Beasley is not crap. He is going to be better then Marion.
     
  15. fuzzy88

    fuzzy88 Member

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    Beasley will be better than Marion. Woopteedoo!
    And BTW, the other half of your brain should be used to check how often the team with lowest record gets to pick #1, which you already assumed. Why do you think this is called a lottery?
     
  16. kty

    kty Member

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    Perhaps 坐井观天 :)
    坐 = sit; 井 = well; 观 = see, observe; 天 = sky
     
  17. t_mac1

    t_mac1 Contributing Member

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    i think we'll only make the trade IF miami gets the #1 pick, like on the condition they choose beasley as #1 then we make the trade.
     
  18. MR. MEOWGI

    MR. MEOWGI Contributing Member

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    :confused:

    [​IMG]
     
  19. daoshi

    daoshi Contributing Member

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    The guy obvious doesn't now how NBA finance works.

    Unlike baseball or football, NBA uses profit-sharing to balance the teams. Anything outside of team's ticket-box sale will be shared by the entire league, so
    Yao doesn't make Les any richer unless he sales the team now with a higher bidder.

    Oh, the Rockets' ticket sale ranks on the button half in the league with Yao, so he didn't help Les there.

    As for Les' involvement with Chinese business, that's a myth, I haven't seen anyone present any solid evidence here. With the way market is going today, Les could have lost tons of money in his investment there.
     
  20. leebigez

    leebigez Contributing Member

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    Like I said, concessions and parking goes to the owner. All international revenue is split by all owners. As far as the shoe deal, the nba is outfitted by reebox/addidas so the shoe deal doesn't do anything. The naming rights is part of the game. I'm not going to say Toyota didn't take into account yao and china, but its not like toyota is paying les more that staples,ford, or at&t. Just like it went from enron to minute maid, houston is a large enough city to get coporate naming rights.

    I think the Rox are a visible team which helps les if he wants to sell, but his revenue is less than chicago,la, and ny because of local radio and cable. NYSE pays the knicks a whole lot more than our rinky dink fsn.
     

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