Re: Tilman Fertitta Won't Consider Selling Minority Stake Of Rockets

[RealGM Wiretap]

The companies owned by Tilman Fertitta have furloughed approximately 70 percent of their employees in response to the COVID-19 outbreak.

Fertitta is the sole owner of the Houston Rockets and he will not consider selling off a percentage of the franchise to "minority partners as a matter of pride," reports ESPN's Tim MacMahon.

Bloomberg reports Fertitta has been speaking with banks about raising as much as $200 million of additional liquidity "as a little bit of insurance."

Fertitta said restaurants and casinos could be allowed to operate at 30 percent to 40 percent of capacity.

“We are doing basically no business,” Fertitta said. “I want to hire every employee back. This is very hard on a lot of working families but we have to survive or there is no company.”

Via Tim MacMahon/ESPN

[BigTex]

He's got enough money to own an NBA team, and to not have to sell a minority stake for "pride," but not enough money to keep a few thousand restaurant employees -- most making at or near minimum wage -- on the payroll while he waits this out. What a great guy!!

[Rafael122]

Fertitta sounds like a guy who blew his entire fortune on buying the Rockets and is now trying to squeak out a profit by any means necessary.

[God Squad]

Fertitta sounds like a guy who blew his entire fortune on buying the Rockets and is now trying to squeak out a profit by any means necessary.

Sounds about right.

[IWishIWasHarden]

Fertitta sounds like a guy who blew his entire fortune on buying the Rockets and is now trying to squeak out a profit by any means necessary.

He likely bought the Rockets and casinos on debt. He wouldn't have actually paid for them yet.

[cheese318]

He's got enough money to own an NBA team, and to not have to sell a minority stake for "pride," but not enough money to keep a few thousand restaurant employees -- most making at or near minimum wage -- on the payroll while he waits this out. What a great guy!!

Let’s just say he has 1000 workers like you stated above just for reference. If you do an average of $15.00/hr for a work day of 8 hours that would break down to $120,000/day. If you make it a weekly issue that breaks down to $600,000/week. This just an estimate because we obviously don’t know how many employees he has. Plus I doubt a waiter/bartender at Morton’s Steakhouse is making minimum wage. That could make the total costs move even higher from that. I do believe he could help out a little but to expect a company to pay for that out of their pocket is kind of outrageous over time. They aren’t making money but they also should not be cheap like the Philadelphia 76ers

[Jedzz]

He's got enough money to own an NBA team, and to not have to sell a minority stake for "pride," but not enough money to keep a few thousand restaurant employees -- most making at or near minimum wage -- on the payroll while he waits this out. What a great guy!!

Let’s just say he has 1000 workers like you stated above just for reference. If you do an average of $15.00/hr for a work day of 8 hours that would break down to $120,000/day. If you make it a weekly issue that breaks down to $600,000/week. This just an estimate because we obviously don’t know how many employees he has. Plus I doubt a waiter/bartender at Morton’s Steakhouse is making minimum wage. That could make the total costs move even higher from that. I do believe he could help out a little but to expect a company to pay for that out of their pocket is kind of outrageous over time. They aren’t making money but they also should not be cheap like the Philadelphia 76ers

I don't know where all his businesses are. But min wage in Houston(Tx) is $7.25/hr. More than doubling that to $15 for an estimate? Maybe only a couple states have a $15 min. Not sure about that. As far as I've heard\, waiters and bartenders often get very little in pay and most of it in tips. Sometimes probably great tips, but not if there are no customers. How about benefits? None? If they have any that would have to be calculated in because real costs add up with benefits. Part time labor, shift work. What's unemployment pay a minimum wage worker of $7-8/hr? Is it half or two thirds of that? With no tips coming in. It's got to be rough. I'm guessing the casinos pay better and expect less in tips?

Either way, if this owner loses everything trying to carry everyone, they will all be out on the street for even longer with no company to hire them back. He'd completely dump it before he let it ruin him. So I can sort of understand. I can also sort of understand not wanting to sell off a portion of his team. I'm also wondering how businesses are going to feel about taking on more loans from the government in their stimulus offerings. Seems like the Government will just end up owning a piece of all these companies just like they own a piece of so many one time college students for damn near life. Notice how they don't give student loan victims a break. That slaving cashflow pays for way too much these days. Going to be tapping businesses now. It's one of those few moments in time where a rare few get rich off the suffering of so many at once. They will be those with their hand out offering a quick fix for a piece of your future.

[BigTex]

He's got enough money to own an NBA team, and to not have to sell a minority stake for "pride," but not enough money to keep a few thousand restaurant employees -- most making at or near minimum wage -- on the payroll while he waits this out. What a great guy!!

Let’s just say he has 1000 workers like you stated above just for reference. If you do an average of $15.00/hr for a work day of 8 hours that would break down to $120,000/day. If you make it a weekly issue that breaks down to $600,000/week. This just an estimate because we obviously don’t know how many employees he has. Plus I doubt a waiter/bartender at Morton’s Steakhouse is making minimum wage. That could make the total costs move even higher from that. I do believe he could help out a little but to expect a company to pay for that out of their pocket is kind of outrageous over time. They aren’t making money but they also should not be cheap like the Philadelphia 76ers

Ok, $120,000/day is only $14,400,000 fir four months. Nickels and dimes if you’re a multibillionaire . Internet says he’s worth $4.4 billion. Even if he has every in a brokerage money market account that pays 1/2 if 1%, he makes $22 million in interest a year. Cry me an F’in river. I, paying all my employees while we’re shut down. Of course my non-professional payroll is only about $18k/mo. But I’ll guarantee that’s a hell of a lot bigger chunk of my wealth than his.

[BallerTalk]

He's got enough money to own an NBA team, and to not have to sell a minority stake for "pride," but not enough money to keep a few thousand restaurant employees -- most making at or near minimum wage -- on the payroll while he waits this out. What a great guy!!

Fertitta may be a garrulous blowhard but this comment is just clueless.
We're talking about 600 restaurants, hotels, and casinos plus an assortment of amusement venues and at least one high end car dealership. And all of that is outside of his obligations with his NBA franchise.

Do the math.

[BigTex]

He's got enough money to own an NBA team, and to not have to sell a minority stake for "pride," but not enough money to keep a few thousand restaurant employees -- most making at or near minimum wage -- on the payroll while he waits this out. What a great guy!!

Fertitta may be a garrulous blowhard but this comment is just clueless.
We're talking about 600 restaurants, hotels, and casinos plus an assortment of amusement venues and at least one high end car dealership. And all of that is outside of his obligations with his NBA franchise.

Do the math.

That's a shot load of restaurants. I'd have guess a couple of dozen.

[BallerTalk]

He's got enough money to own an NBA team, and to not have to sell a minority stake for "pride," but not enough money to keep a few thousand restaurant employees -- most making at or near minimum wage -- on the payroll while he waits this out. What a great guy!!

Fertitta may be a garrulous blowhard but this comment is just clueless.
We're talking about 600 restaurants, hotels, and casinos plus an assortment of amusement venues and at least one high end car dealership. And all of that is outside of his obligations with his NBA franchise.

Do the math.

That's a shot load of restaurants. I'd have guess a couple of dozen.

Yeah, Fertitta has been at it since the 80s and he's been known for aggressively going after restaurants/chains that may be in financial straits.

[DimesandKnicks]

He's got enough money to own an NBA team, and to not have to sell a minority stake for "pride," but not enough money to keep a few thousand restaurant employees -- most making at or near minimum wage -- on the payroll while he waits this out. What a great guy!!

Let’s just say he has 1000 workers like you stated above just for reference. If you do an average of $15.00/hr for a work day of 8 hours that would break down to $120,000/day. If you make it a weekly issue that breaks down to $600,000/week. This just an estimate because we obviously don’t know how many employees he has. Plus I doubt a waiter/bartender at Morton’s Steakhouse is making minimum wage. That could make the total costs move even higher from that. I do believe he could help out a little but to expect a company to pay for that out of their pocket is kind of outrageous over time. They aren’t making money but they also should not be cheap like the Philadelphia 76ers

Ok, $120,000/day is only $14,400,000 fir four months. Nickels and dimes if you’re a multibillionaire . Internet says he’s worth $4.4 billion. Even if he has every in a brokerage money market account that pays 1/2 if 1%, he makes $22 million in interest a year. Cry me an F’in river. I, paying all my employees while we’re shut down. Of course my non-professional payroll is only about $18k/mo. But I’ll guarantee that’s a hell of a lot bigger chunk of my wealth than his.

That's why he's the multi millionaire and you the dude talking about what you would if you were him

[cheese318]

He's got enough money to own an NBA team, and to not have to sell a minority stake for "pride," but not enough money to keep a few thousand restaurant employees -- most making at or near minimum wage -- on the payroll while he waits this out. What a great guy!!

Let’s just say he has 1000 workers like you stated above just for reference. If you do an average of $15.00/hr for a work day of 8 hours that would break down to $120,000/day. If you make it a weekly issue that breaks down to $600,000/week. This just an estimate because we obviously don’t know how many employees he has. Plus I doubt a waiter/bartender at Morton’s Steakhouse is making minimum wage. That could make the total costs move even higher from that. I do believe he could help out a little but to expect a company to pay for that out of their pocket is kind of outrageous over time. They aren’t making money but they also should not be cheap like the Philadelphia 76ers

Ok, $120,000/day is only $14,400,000 fir four months. Nickels and dimes if you’re a multibillionaire . Internet says he’s worth $4.4 billion. Even if he has every in a brokerage money market account that pays 1/2 if 1%, he makes $22 million in interest a year. Cry me an F’in river. I, paying all my employees while we’re shut down. Of course my non-professional payroll is only about $18k/mo. But I’ll guarantee that’s a hell of a lot bigger chunk of my wealth than his.

Ok he’s worth billions of dollars. We can confirm that. Problem is if he does it for one of his companies then he would look bad to not do it for all of his companies. If he had a cap of $100,000 I would hope he wouldn’t be so cheap. Let’s say he is an employer to 10,000-20,000 employees from his restaurant staff, sports team, ownership & arena employees. He could have other businesses we don’t know of.