Rockets Owner Les Alexander has "put the franchise up for sale" in a "stunning" decision, according to a front-page piece by Jonathan Feigen of the HOUSTON CHRONICLE. Rockets President & CEO Tad Brown said that the 73-year-old Alexander "has no health issues that led to the decision to sell the team nearly 24 years to the day after he purchased it" for $85M from Charlie Thomas. Brown said, "It's something he's been thinking about a little bit. It can wear on you after so many decades. There are passions in his life now that are becoming more and more clear, his family and his philanthropic efforts." Brown said that there is "no timetable for the sale," but the NBA "does have prospective buyers who have shown interest." Feigen notes the price tag "could run as high" as the NBA-record $2B for which the Clippers sold three years ago. Brown will "oversee the effort to sell the team in consultation with the league." He said that Alexander is "committed to finding a buyer that will keep the team in Houston." Alexander has "not begun negotiations with any prospective owner or group." Feigen notes the decision "comes at a time Alexander has been especially involved in the team's decision-making," including the trade for G Chris Paul and the NBA-record extension for G James Harden (HOUSTON CHRONICLE, 7/18). ESPN's Adrian Wojnarowski said Alexander has been "one of the real significant owners in the league," but "you're going to start to see some of those owners in advancing years cash in on these teams" ("The Jump," ESPN, 7/17).
SHOCK WAVE: The Houston Chronicle's Brian Smith said the news of the sale was a "bombshell" and even Brown was "completely shocked." Smith: "No one had any idea that this was coming and it comes at such a peak for the team and now you are injecting a lot of uncertainty into what has been a very, very stable franchise." Smith added that while there is nothing to lead one to believe the team will leave Houston, this sale was "unthinkable just a couple of weeks ago" (CHRON.com, 7/17). ESPN's Michael Smith said of Alexander, "He's put a lot into this team, and it's a perfect time to sell given what organizations and franchises are going for." But Smith asked, "Does the next guy come in the door and run it with the class and the commitment that Leslie Alexander did? If I'm a fan of the Rockets, I'm concerned" ("SportsCenter," ESPN, 7/17).
PRICE COULD BLAST OFF: Former Rockets President & CEO George Postolos said that the sale price will likely be higher than its Forbes valuation of $1.65B "thanks in part to the team’s popularity in China, where former Rockets star Yao Ming is immensely popular." Postolos: "They’re gonna be very attractive." Alexander said that he "wouldn't be hiring a bank to assist in the sale" (BLOOMBERG NEWS, 7/17). In N.Y., Kevin Draper writes a Rockets deal "could be the perfect storm for a record sale in the league." The NBA is "already awash with a gushing stream of revenue, and the Rockets are in the country’s fourth-most populated city and have a huge toehold in China." Even recent purchases of some of the league’s "less appealing franchises" like the Hawks in '15 and Bucks in '14 have been "staggering" (N.Y. TIMES, 7/18). The WALL STREET JOURNAL's Ben Cohen wrote it is "unusual for any NBA team to be up for grabs" nowadays. But it is "even rarer for a team like the Rockets to be available." They have "two star players, a stable future, international appeal" because of Yao and a "bright front office in one of the league’s biggest markets" (WSJ.com, 7/17). Houston-based KHOU-CBS' Matt Hammond tweeted, "Wouldn't be surprised to see a lot of NBA owners cash out. With all the changes to TV landscape, this is prob as good as it's gonna get. ... Makes all the sense for current NBA owners to sell high. Not sure if it makes sense for prospective owners to buy at highest it may ever be" (TWITTER.com, 7/17).
LOOKING AT POSSIBLE CANDIDATES: Houston billionaire Tilman Fertitta said that he "has an interest in purchasing the Rockets." Fertitta: "I definitely have an interest. Just hope it doesn't go for crazy numbers. I've never really wanted to own a professional team outside of Houston. Houston is my hometown and the place I would prefer to own a professional team." In Houston, Joseph Duarte notes Fertitta previously served as an advisory director during the franchise's championship seasons in '94 and '95 (HOUSTON CHRONICLE, 7/18). Houston-based Gallery Furniture Owner Jim McIngvale said that he is "interested in putting a group together." McIngvale: "I've had several people call me wanting to put a group together and try to buy the Rockets, so we're going to try to do that. I have a long history with Houston sports and the Houston Rockets. It'd be fun to get involved and bring Clutch City back again." The Texans in a statement said Owner Bob McNair "does not have interest" (CLICK2HOUSTON.com, 7/17). THE STREET's Martin Baccardax wrote the sale "could ignite new speculation of interest" from Amazon Founder & CEO Jeff Bezos. He has "ties to the Houston area, where he attended elementary school" (THESTREET.com, 7/17). NBA TV's Dennis Scott said of a potential buyer, "You find someone local who loves the Houston Rockets, born and raised, and they'll probably keep the team there and continue to grow it" ("NBA GameTime," NBA TV, 7/18).
FAR, FAR AWAY? ESPN.com noted interest in owning the Rockets "might not be limited" to the U.S.-based owners (ESPN.com, 7/17). ESPN's Wojnarowski said of the Rockets, "They are the team in China and that adds to their value." He also noted NBA Commissioner Adam Silver "plays a big part in vetting who they like" ("The Jump," ESPN, 7/17). NBC Sports Bay Area's Monte Poole said, "Yao is still identified as a member of the Rockets. He goes and visits the team and comes to games and so forth. They're in a great position and (Alexander) will have a lot of people who will want to buy this team from him" ("The Happy Hour," NBC Sports Bay Area, 7/17).
SURPRISE PARTY: In Houston, Jenny Dial Creech writes the sale is a "shocking bombshell" for a city "buzzing with enthusiasm about its sports franchises." After "spending the last few weeks making sure the Rockets were staying on track to accomplishing their ultimate goal -- competing for and winning another championship for the franchise -- Alexander stunned the basketball world." Through "all the changes in the last couple of years for the team, Alexander has been the constant." Creech: "It's hard to imagine this franchise, this fan base and this community without him. It's also hard to imagine what the Rockets will look like under a new owner" (HOUSTON CHRONICLE, 7/18). The HOUSTON CHRONICLE's Smith writes Alexander "placing the Rockets on the open market" at this time falls into the "realm of the unexplainable." Alexander "obviously has every right to walk away when he wants." But the timing "couldn't be odder and there won't be any real certainty" with the '17-18 Rockets "until a new owner is announced" (HOUSTON CHRONICLE, 7/18). The Chronicle's Feigen tweeted, "Can't tell you how stunning Alexander decision is around NBA, especially in organization. Had seemed as enthused as ever." ESPN's Wojnarowski: "Alexander's decision to sell the Houston Rockets didn't only surprise the rest of the NBA, it surprised those within the franchise." ESPN's Darren Rovell: "Strange for Houston Rockets to announce they are for sale AFTER doing Harden deal. Huge commitment prospective buyers might not want" (TWITTER.com, 7/17).
