2017 NBA OFFSEASON

lol

and wow thats a lot of money

ballmer must feel better

Smart move to accumulate big name all-stars during the off-season, then sell high before anyone knows how well they'll play together. In Wall Street this strategy is known as pump-and-dump.

apparently this is like almost all of this guys money hes going all in lol

he's gonna cut CP first thing, gotta avoid that repeater tax.

he'll sell it for 10 billion in 20 years prob xp

idk, hard to see tv revenue going up after they come off this current deal

espn is gonna be 50% esports by then

hm that may be the most old man thing i have said to date

mba valuations r purely based on a how much wld a rich guy to pay for a toy ratio

apparently this is like almost all of this guys money hes going all in lol

― 龜, Tuesday, September 5, 2017 6:48 PM (one hour ago) Bookmark Flag Post Permalink

i assume he's financing this? like ballmer could pay cash but that's a whole different league of rich.

if u spend 70% of yr net worth (reported figure) on a $2.2b basketball team its chill cause u still have another billion dollars

i would assume so which could put us in the humorous situation of a bank owning the houston rockets in a couple of years when this guy defaults on the interest payments lol xp

idk why that would happen, he's a restaurant/casino guy, seems fairly legit

if u enjoy drama then u will wish for his failure

think casinos have been pretty down recently (big restrictions in china to control outflow of capital is killing macau, ~millennials~ are killing las vegas) buying something that's 70% of your net worth seems like a big elephant to swallow and i doubt any banks would lend to him without a security interest

a boring life: a very rich man makes prudent decisions with his assets and continues to be rich as fuck

a good life: a very rich man puts all his assets into a single investment and ignorantly destroys it

a good and just world: every billionaire is hacked of their wealth and the nba players start a splinter league that is about pure hoops bliss

xp sure. i just don't know why this guy's finances, which have at this point been vetted by the nba, are any less precarious than several other owners. yeah the valuation of the team makes a difference but i'm just not seeing it.

other owners prob bought their franchises when valuations were much lower for one thing

yes, idk if the phil group or mem group or mil group would have been able to buy today; it's almost like this guy is more qualified

why are we not sitting in a circle praying for the downfall of the wealth class yet

there's a big diff between servicing idk $500m of debt vs $2.2 billion of debt if the underlying revenue streams haven't really kept up with the valuation. i mean i assume it all works on paper right now but i also gotta assume that the lenders have the protection they need

unrelatedly, digging around, found this, lol: https://www.forbes.com/sites/kurtbadenhausen/2017/01/27/how-lebrons-cavaliers-lost-an-nba-high-40-million-last-season/#2ef376317699

xp well praying wouldn't get us very far for one thing

not when you pray to the christian god, tuh

i agree there's a big difference; what i'm saying is that the ownership groups that bought in at 500 mil likely have different profiles than the ownership groups that are buying in at $1-2B. again, someone needs to share a good reason why this ownership is higher risk other than "oh that's a big number."

the cavs losing $40M is not shocking at all; gilbert is nuts and a lousy manager but i've never heard a suggestion that he cared about the bottom line if they were winning.

you're paying a lot more interest on $2B than $500M!

not me i pay the same

wow no wonder you have 2 billion dollars

and it's a lot more likely that this deal was financed with debt than straight cash homie like ballmer given the net worth of this guy. i imagine with an ownership group there's probably more cash up front since each owner is not investing 70% of their net worth

why are we not sitting in a circle praying for the downfall of the wealth class yet

― Rob Lowe fresco bar (m bison), Tuesday, September 5, 2017 10:11 PM (nine minutes ago) Bookmark Flag Post Permalink

force the super wealthy to buy all the NBA teams, but without any operational input whatsoever. they have ceremonial duties like the queen of england. the teams are publicly run, tickets are steeply discounted, and owners have to buy their own stadiums

oh and players take a huge pay cut too but cry me a river

and it's a lot more likely that this deal was financed with debt than straight cash homie like ballmer given the net worth of this guy. i imagine with an ownership group there's probably more cash up front since each owner is not investing 70% of their net worth

― 龜, Tuesday, September 5, 2017 10:24 PM (five minutes ago) Bookmark Flag Post Permalink

yes, absolutely! you keep saying things that are true without explaining why this is a high-risk transaction. vivek bought the kings for $500M+ against his net worth of $700M b/c his slew of minority owners stabilized the finances while making the team extremely hard to govern. is that preferable?

actually a real lol is that fertitta tried to buy the rockets for $81M 25 years ago and lost to les alexander by $4M.

it's high risk because outside of the ballmer sale there hasn't been any other billion plus, let alone $2 billion plus, valuation of a NBA team. prior to that you had the kings record setting sale that valued them at ~$550 million (ps vivek's group only bought a $350 majority stake so they would have had to share in the ownership no matter what). after the ballmer sale you have the hawks selling for $900m and i think that's it?

if the rockets buyer was a guy who paid straight cash like ballmer then we wouldn't be having this conversation. but since he's not, and if it's v likely that he's financed this with a lot of debt given his personal net worth, then you gotta ask can the rockets as a business pull in enough revenue to service the interest on $1B or $2B or w/e he borrowed to buy this franchise, when it seems like most other owners have not, before and after ballmer, valued franchises at levels anywhere near $2.2B

yes, agree w/all that, part of it is thinking that fertitta's finances were reviewed and there was agreement that this would be workable, part of it is that if this is how nba franchises are valued now you can't really wait around for the next ballmer b/c there are only like 10-20 of those guys in existence (in the usa) and how many of them want to own nba teams? also obv the local connection is treasured both by alexander and by the league who gave the SAC group and the NOLA ownership a leg up b/c they were not going to move those franchises.

it would be a *disaster* for the nba if this ownership became insolvent anytime soon so i'm going to think they know what they're doing until there's evidence otherwise.

a more likely outcome than this ownership outright failing is the carte blanche and open wallet that morey's had for years suddenly disappearing due to cost pressures; i would understand that but it would be sad b/c alexander's tenure was possibly one of the best ownership runs i've ever seen.

from a strict outsider standpoint the rockets have been an aspirational franchise and i hope that continues.

ive bought the thunder and im moving them to a man made island in the gulf of mexico

makes sense

its a libertarian paradise

i'm sure steven adams is down

down...under!
*BOING*

Oklahoma plain too liberal for our good friend lagoon

yes, agree w/all that, part of it is thinking that fertitta's finances were reviewed and there was agreement that this would be workable, part of it is that if this is how nba franchises are valued now you can't really wait around for the next ballmer b/c there are only like 10-20 of those guys in existence (in the usa) and how many of them want to own nba teams? also obv the local connection is treasured both by alexander and by the league who gave the SAC group and the NOLA ownership a leg up b/c they were not going to move those franchises.

it would be a *disaster* for the nba if this ownership became insolvent anytime soon so i'm going to think they know what they're doing until there's evidence otherwise.

― call all destroyer, Tuesday, September 5, 2017 11:02 PM (twenty-four minutes ago) Bookmark

idk i think it's pretty hard to look into the future with that amount of accuracy! and i think yr argument could cut the other way too, it's entirely possible that the NBA endorsed a more financially risky proposal precisely bc ownership stayed local as opposed to going with a more stable outside investor group or investor coming in at a lower price.

seems to me that insane valuations are probably factoring in growth a la tech companies which seems stupid, granted NBA is the prob the only major sport that's gaining in viewership but its hard to say how that will pan out esp in terms of increased revenue. it's just hard to forecast any of this stuff, i mean look at the ESPN/TNT tv deal, back when they made it in 2014 it looked like sports were immune from tv viewership die-off and sports viewership was maybe even growing but three years later ESPN is sucking air (just look at the layoffs) and im betting by the time 2023 rolls around or w/e it comes time for new tv rights it's gonna look like a real albatross of a contract. also look at what contracts teams were giving out in free agency one year ago, it's p obvious nobody was factoring in that GSW dominance would torch the salary cap this year.

its also entirely possible that owning the rockets is like a moby dick fever dream for this guy and he'd be willing to burn everything else in his portfolio to the ground in pursuit of winning a title - if that's the case then fine by me

why are we not sitting in a circle praying for the downfall of the wealth class yet

just send out the invitations, man, so we know where to sit

O

somewhere on that circle

seems small

haberstroh goes deep on isaiahs injury, seems pretty inconclusive, but hey maybe the celtics will be sacrificed to the warriors in 10 months http://www.espn.com/nba/story/_/id/20595342/nba-cleveland-cavaliers-guard-isaiah-thomas-faces-uncertain-return-potentially-career-ending-hip-injury

research suggests where top high school recruits go to college doesnt affect their draft stock http://www.espn.com/college-sports/recruiting/basketball/mens/story/_/id/20589303/michael-porter-jr-collin-sexton-bucking-trend-going-missouri-tigers-alabama-crimson-tide-bluebloods