On November 19 2020 07:08 JimmyJRaynor wrote: for an average person he is doing great. for an NBA owner he was ~ 10th in terms of net worth before the pandemic hit. He "furloughed" 40,000 employees. He is getting crushed.
He'll be fine. Whether or not he wants to keep up the Rockets payroll.. is another matter. If he makes the exodus of players from Houston look like it is some other issue other than money he can keep the trade value of his best assets high.
Almost no billionaires are getting crushed unlike the rest of people they are getting bailouts and have great tax strategies and a climbing market. And being the 10th richest NBA owner puts you in the .0001%
He does not think his his team can win a championship and he is right. Also Westbrook and Harden are worth the most they ever will be right now. Those are depreciating assets. You hold them if you want to win now, you trade them if you want max value back.
On November 19 2020 09:14 Vindicare605 wrote: I can't tell if I should feel bad for Danny Green that he's being passed around the league like this or happy for him because now he's "technically" back with another contending team.
Also, Morey ACTUALLY managed to dump that atrocious Horford contract. That's actually amazing. Amazing for Presti too because the Thunder own like 12 picks at this point.
I really like it for OKC they buy super low on a super High character guy that they can afford, they get extra assets he will be amazing for the young team and if he excels they can flip him next off-season like CP but if they don't his contract won't be too bad as it will expire as they have to pay their young guys.
On November 19 2020 07:08 JimmyJRaynor wrote: for an average person he is doing great. for an NBA owner he was ~ 10th in terms of net worth before the pandemic hit. He "furloughed" 40,000 employees. He is getting crushed.
He'll be fine. Whether or not he wants to keep up the Rockets payroll.. is another matter. If he makes the exodus of players from Houston look like it is some other issue other than money he can keep the trade value of his best assets high.
Almost no billionaires are getting crushed unlike the rest of people they are getting bailouts and have great tax strategies and a climbing market. And being the 10th richest NBA owner puts you in the .0001%
He does not think his his team can win a championship and he is right. Also Westbrook and Harden are worth the most they ever will be right now. Those are depreciating assets. You hold them if you want to win now, you trade them if you want max value back.
Arison's net worth fell 33% in 6 weeks. That's the kind of loss that makes a billionaire think twice about spending hundreds of millions of dollars on a basketball team. Arison's personal life style is secured. However, his spending habits will change or he'll go bankrupt pretending there is nothing wrong.
Fertitta's own finances may contribute to that thriftiness. Fertitta had less than $300 million in cash when he purchased the Rockets, according to Forbes, but used a somewhat unusual deal structure to secure the team. In addition to assuming some debt and taking out a loan from previous owner Leslie Alexander, he sold over $1.4 billion in bonds to finance the purchase. That left him very heavily leveraged, and the coronavirus made matters significantly worse.
Fertitta's fortune was made in the restaurant and casino business. Neither industry is doing particularly well during the pandemic. Fertitta took out a $300 million loan at a steep 13 percent interest rate to keep his business afloat in April, according to the Houston Chronicle. The Rockets, like the rest of the NBA, lost a good deal of revenue last season when the league was forced to shut down in March. They will lose more next season, when arenas will, at best, be only partially filled. Most projections have the league losing somewhere between 30-40 percent of its revenue, and while the league will recoup some losses in the form of increased escrow withholdings out of player salaries (up to 18 percent from the usual 10), owners are going to take the brunt of the hit here.
He sounds like one of those billionaires who look much better on paper and aren't as rich as Forbes thinks they are. I've found it curious why he was hell bent on avoiding the luxury tax pre-pandemic even when the Rockets were considered championship contenders.
On November 19 2020 10:45 andrewlt wrote: He sounds like one of those billionaires who look much better on paper and aren't as rich as Forbes thinks they are. I've found it curious why he was hell bent on avoiding the luxury tax pre-pandemic even when the Rockets were considered championship contenders.
On November 19 2020 10:45 andrewlt wrote: He sounds like one of those billionaires who look much better on paper and aren't as rich as Forbes thinks they are. I've found it curious why he was hell bent on avoiding the luxury tax pre-pandemic even when the Rockets were considered championship contenders.
Yeah sounds like he is in terrible trouble being offered 1 billion for half the rockets.
Being worth 3.2 or 5 billion won't change anything in his life and the rockets are not losing tons of cash, that is how the TV deals and revenue based tax line works.
No one is going to know his exact cash situation but given how much he owns of the rockets and how much they are worth he will always have access to it by selling some. Also, devaluing your biggest asset by making short term salary moves would be stupid as hell.
Is he net worth growing no, is he desperate, highly doubtful. It is such a poor assumption compared to the far more likely they went all in with this small ball approach adding Westbrook and ditching capella. It didn't work and now they are tearing it down (starting with GM and coach) and now deciding to rebuild or retool their roster. Harden is one of the top 5 players in the league do you trade him for the huge haul or try to rebuild around him? And do you trade Westbrook while he still has value or ride it out trying to put people around them knowing you're unlikely to beat either team from LA.
Harden is 100% worth more than his contract to his team. And Westbrook is not even that bad he is still probably not worth it.
Fertitta prolly can't afford the payroll. The Rockets were projected to have the 5th highest payroll and he WAS the 10th richest owner who just laid off 40,000 workers. Looks like he is laying off a few members of his NBA squad.
In the hospitality and restaurant industry you make huge money off the backs of low paid employees. Losing 40,000 employees represents a massive loss in both revenue and profit profit.
On November 19 2020 12:24 JimmyJRaynor wrote: nah, i think the bloomberg article nailed it.
How many other NBA owners laid off 40,000 people?
Fertitta prolly can't afford the payroll. The Rockets were projected to have the 5th highest payroll and he WAS the 10th richest owner who just laid off 40,000 workers. Looks like he is laying off a few members of his NBA squad.
In the hospitality and restaurant industry you make huge money off the backs of low paid employees. Losing 40,000 employees represents a massive loss in both revenue and profit profit.
and expenses lol. Read the article again and also see how his empire is structured. Also, are you sure he got no money from the US government? he is a huge Trump supporter and fan, he is the industry that received bailouts.
This is just another JJR conspiracy theory a lot of assumption, little to no facts. And a misrepresentation and low understanding of what those facts tell you. Hell that Westbrook and Harden are even going to be traded is a rumor at this point and somehow you have moved to "needs to because one of the 1000 richest men in the world is broke and is going to devalue his greatest asset for quick cash flow relief". It is clear that your understanding of corporate finance is even way below your online doctoring, which is not very good.
its all in the bloomberg article. if you have anything to back up your points that Fertitta is on solid financial ground... post it. Otherwise, the personal attacks just lower the signal to noise ratio of the discussion.
conspiracy is a crime . he is not committing any crimes. he is borrowing hundreds of millions of dollars at 14%+.
Do you know who is in solid financial shape? The guys loaning him the hundreds of millions. They're doing great.
Hilarious quote on reddit: If Kyrie couldn't handle being Robin when playing with Lebron... how will he handle being Alfred the Butler with Harden and Durant on his team?
On November 19 2020 12:35 JimmyJRaynor wrote: conspiracy is a crime though. and he is not committing any crimes. he is borrowing hundreds of millions of dollars at 14%+.
Do you know who is in solid financial shape? The guys loaning him the hundreds of millions. They're doing great.
A crime? A conspiracy is "a secret plan by a group to do something unlawful or harmful." You are suggesting he has the secret plan of dumping his players against their teams basketball interest harming the team because he can't afford to pay his players. It is a conspiracy theory because there is no proof of that, and a bad one because the facts don't lead to that presumption.
Taking a 13% loan is worse than a 5% loan, hell it is worse than a 12 % loan. But is it a bad thing to do? What if he is making 20% on that money? Then it is a great deal. What is more likely is what is stated in the article, that he could sell part of the rockets if he ever needed to, he is always getting offers. But he thinks the rockets will go up in value more than 12%. Also there is many tax breaks to interests and the way his empire is set up and where the loan is and what assets it is attached to matter.
Thinking a 13% loan means automatically bad just shows how incredibly out of your depth you are and likely why your assumptions are so faulty. It COULD mean trouble, not it does. It is so extremely far from the smoking gun you think it is.
You need so much more information to accurately go to where you have gone too.
edit: to your edit, I already explained to you that your article says that he is doing worse than he was. 5B to 3.5B. It does not say he does not have the cash flow to pay the rockets salaries, and it scratches the surface that his businesses are separate through different holdings so even if the restaurant end is hurting on cashflow that does not mean the Rockets are.
On November 19 2020 09:17 andrewlt wrote: Danny Green traded again. Something tells me he could get traded again but will eventually end up accepting a buyout and rejoining the Lakers or joining some other contender before all is said and done.
I laugh about people who act like Danny Green was jetting off to OKC and now Philly (same with Rubio getting bounced around). He's just sitting in a hot tub in LA people!
It does suck for the first trade if you like where you are, but the people who get traded lots literally don't care about their interim teams (and most of the midlevel guys treat every team as interim).
On November 19 2020 12:47 JimmyJRaynor wrote: Taking a high interest loan is a sign of financial weakness. The smoking gun is the 40,000 laid off employees.
No it is not. Furloughed customer service employees during a pandemic from a business in a separate holding from the rockets. Again, not the smoking gun you think it is.
Hell there is a lot more evidence to the other rumor flying around that all of Tilman's support from Trump has angered Harden and this is why he wants out not the other way around. Hell it makes a lot more sense since Harden is a super valuable asset.
On November 19 2020 09:17 andrewlt wrote: Danny Green traded again. Something tells me he could get traded again but will eventually end up accepting a buyout and rejoining the Lakers or joining some other contender before all is said and done.
I laugh about people who act like Danny Green was jetting off to OKC and now Philly (same with Rubio getting bounced around). He's just sitting in a hot tub in LA people!
It does suck for the first trade if you like where you are, but the people who get traded lots literally don't care about their interim teams (and most of the midlevel guys treat every team as interim).
Haha, yeah. It doesn't matter if he gets traded to all 30 teams in the offseason. He doesn't need to move until he actually needs to play in a game. There may be some restrictions that prevent him from resigning with the Lakers if he gets bought out, but he could always join the Clippers in that scenario.
On a side note that may only interest me, there's a 2nd round pick with the unfortunate name of Scrubb.
On November 19 2020 09:17 andrewlt wrote: Danny Green traded again. Something tells me he could get traded again but will eventually end up accepting a buyout and rejoining the Lakers or joining some other contender before all is said and done.
I laugh about people who act like Danny Green was jetting off to OKC and now Philly (same with Rubio getting bounced around). He's just sitting in a hot tub in LA people!
It does suck for the first trade if you like where you are, but the people who get traded lots literally don't care about their interim teams (and most of the midlevel guys treat every team as interim).
Haha, yeah. It doesn't matter if he gets traded to all 30 teams in the offseason. He doesn't need to move until he actually needs to play in a game. There may be some restrictions that prevent him from resigning with the Lakers if he gets bought out, but he could always join the Clippers in that scenario.
On a side note that may only interest me, there's a 2nd round pick with the unfortunate name of Scrubb.
it is confirmed. ruptured achilles on Klay. getting cut wide open for major surgery 2 times in such a short time period ... he will probably never be the same.
I wonder how much the Warriors owe the devil for their recent run. Seems like the devil is getting his due now that the contract expired.
LOL. a lot of injury luck definitely broke their way through their 5 year run.
Durant's injury was a non-contact injury, therefore, it was not a matter of bad luck. Durant's muscles were writing cheques his connective tissues could not cash. If Durant tries to do what he did for the months, weeks and days leading up to his last injury he will wreck his ankle again.
EDIT: Hayward opts for free agency. He was slated to get $34.2 million. I'll be surprised if he gets that this year.
EPT
