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Old 07-19-2017, 10:54 AM
 
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From a cash flow standpoint the formula is

Price = Dividend (or income stream) / (risk adjusted interest rate - income stream growth)

Basic present value formula for stocks but works for stuff like this too.

So, if you have a business generating 50mil a year in profit and you feel the risk adjusted interest rate is 8% and that the profits will grow 3% a year on average it's worth.... 50mil / (.08 - .03) = 1 billion

So I just looked at Houston has like 63mil in operating income so if you use 4% growth and 8% interest rate with that you get to almost 1.6bil or in the ball-park.

Forbes noted that the team values are up 3.5 times what they were 5 years ago which is why many of us have some sticker shock.
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Old 07-19-2017, 10:58 AM
 
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Quote:
Originally Posted by DRob4JC View Post
Dikembe also trying to get a group together.
I could see a number of Chinese business moguls pitching in for part ownerships.

Probably too political to be seen owning a foreign team but a 10-20% stake could easily be explained as an investment.

Dikembe is one of the smartest people to ever play in the NBA he'd make an interesting public face for the Rockets.
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Old 07-19-2017, 03:00 PM
 
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Houston has a heavy Asian concentration and don't forget the connection of Yao Ming and Houston.
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Old 07-19-2017, 04:27 PM
 
Location: spring tx
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Originally Posted by weezerfan84 View Post
Houston has a heavy Asian concentration and don't forget the connection of Yao Ming and Houston.
the yao connection for sure. he made the rockets very popular in china

the asian population, ehhh not so much.
houstons asian population 2016 was about 126k or about 6% of the cities population.

not huge really
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Old 07-19-2017, 07:59 PM
 
Location: Gulf Coast Texas
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Quote:
Originally Posted by rigas View Post
the yao connection for sure. he made the rockets very popular in china

the asian population, ehhh not so much.
houstons asian population 2016 was about 126k or about 6% of the cities population.

not huge really
Yes... Asian population is big in a couple of areas, that's about it.

I think a big man contingent is necessary. Yao, Dikembe, Hakeem... let's get it done.
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Old 07-19-2017, 08:21 PM
 
Location: spring tx
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Originally Posted by DRob4JC View Post
Yes... Asian population is big in a couple of areas, that's about it.

I think a big man contingent is necessary. Yao, Dikembe, Hakeem... let's get it done.
yup, chinatown. bellaire/bissonnet/beltway 8 area.

i wouldnt be surprised to see the 3 of them, go in on it.
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Old 07-20-2017, 10:18 AM
 
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Originally Posted by weezerfan84 View Post
Houston has a heavy Asian concentration and don't forget the connection of Yao Ming and Houston.
Doesn't matter that Houston has some Asians....as you've all correctly pointed out the Rockets are big in a country of over 1 billion due to Yao.

It would not shock me in the least to see a large investor segment of quieter money from China get in on a consortium lead by someone like Mutumbo.

Heck, I'd go a step further and say I think it's LIKELY that will happen.
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Old 07-20-2017, 10:25 AM
 
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Originally Posted by DRob4JC View Post
Yes... Asian population is big in a couple of areas, that's about it.

I think a big man contingent is necessary. Yao, Dikembe, Hakeem... let's get it done.
Yeah Yao's net worth has been exploding through a series of business deals. I see lots of conflicting information but he could be worth over 1 billion soon if he isn't there already. (Things aren't as transparent in China )

The NBA would no doubt be drooling over the idea of making owning portions of nBA teams *a status thing* in a country like China with billionaires all over the place. There is only so much money around the world that is interested in basketball ownership.
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Old 07-20-2017, 02:49 PM
 
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Tilman Fertitta is probably the most likely owner for right now. He has business connections on top his already extremely high net worth.

On another note. With Les gone, this opens the possibility of an NHL franchise in Houston.
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Old 07-20-2017, 03:08 PM
 
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Originally Posted by ParaguaneroSwag View Post
Tilman Fertitta is probably the most likely owner for right now. He has business connections on top his already extremely high net worth.

On another note. With Les gone, this opens the possibility of an NHL franchise in Houston.
Great post. That would be over half his net worth to buy the team so he's going to almost certainly need some other money. Heck, 10 years ago he could have plunked down 100mil and gotten some bank loans for the other 300mil. Today it's 1.6billion give or take and that could be a big pill to swallow by himself.
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