Rockets Owner Les Alexander's surprise decision to sell the team will be a "fascinating test case that will provide clues to the long-term health of the NBA and the value of franchises not only in the league, but across North American professional sports," according to Adam Kilgore of the WASHINGTON POST. In recent years, the sale of an NBA team has meant "jaw-dropping prices that far exceed expectations." The Hawks, the last NBA team to sell, sold for $730M in '15, while the Clippers were bought by former Microsoft CEO Steve Ballmer for $2B in '14. In the "rare occasions an NBA franchise has come up for sale in recent years, the market has shown that they are valued at astronomical and ever-rising prices." The NBA has been the "picture of financial health, with every indicator suggesting growth in overall value." The sale of the Rockets, a big-market team with G James Harden locked up for the long term, could "serve as a litmus test to show whether that remains the case." The question that "begs to be asked: Does Alexander believe he's cashing out at the top of the market?" It "makes sense to wonder whether Alexander sees a potential decline coming in the value of NBA franchises after an unprecedented spike" (WASHINGTON POST, 7/19).
WHY NOW? ESPN’s Jackie MacMullan noted Alexander is "one of the most hands-on owners." MacMullan: "I don’t understand exactly what this is about and I wonder if there’s more to it than we might learn about later on" ("Around The Horn," ESPN, 7/19). In Houston, Jonathan Feigen notes Alexander and Rockets President & CEO Tad Brown speak "nearly every day, and Brown knew Alexander had considered selling the team." But even to Brown, the decision was a "shocker." Alexander decided to sell now because he was "tired of the grind, tired of devoting the time and energy and emotion into the job." He was "not the type to let the front office make decisions and wait for an email." But "putting that all aside, the time is right." The NBA is "just at the start of its enormous television deals with money pouring in from Turner and ESPN." NBA business is "booming." Additionally, with Harden and newly acquired G Chris Paul, the Rockets have "two of the most marketable players in sports, enhancing the Rockets' brand and value." The Rockets seem "entrenched as a top-five team" (HOUSTON CHRONICLE, 7/19). ESPN’s Mina Kimes said the extension of Harden, trade for Paul and extension for GM Daryl Morey this offseason "sort of child-proofed this team in a way for a new owner" ("Around The Horn," ESPN, 7/19). ESPN’s Kate Fagan noted the Rockets big offseason moves were perhaps to "up the curb appeal for a potential buyer"("OTL," ESPN, 7/18).
ALEXANDER THE GREAT: In S.F., Bruce Jenkins writes Alexander had "one hell of a run." He bought the Rockets for $85M, "watched the team win NBA titles in each of his first two seasons, and spent freely to keep the team in contention as its value rose" to $1.65B. Jenkins: "That's how to turn a handsome profit" (S.F. CHRONICLE, 7/19). ESPN’s Adrian Wojnarowski noted it is "business as usual" for Morey as the Rockets attempt to trade for Knicks F Carmelo Anthony. Wojnarowski said what Alexander is “selling to potential buyers is ... a ready-made team here that is in position to win long-term." Wojnarowski: "If they can get a Carmelo Anthony deal done in Houston and it costs them a little bit more money, it's not going to be a factor. Leslie Alexander wants to be winning going out the door" ("The Jump," ESPN, 7/18).
PROSPECTIVE BUYERS: Houston-based Gallery Furniture Owner Jim McIngvale said that he has "already talked to several people about buying the team and 'we'll see where it goes from here.'" McIngvale: "I have an affinity for the Rockets. Mr. Alexander did a great job with the Rockets. I hope whoever the new owner is will bring some more championships to the city." In Houston, Fernando Alfonso notes Houston billionaire Tilman Fertitta has "also expressed interest, and has deep pockets" (HOUSTON CHRONICLE, 7/19). ESPN’s Tony Kornheiser said a $2B price tag "seems high" ("PTI," ESPN, 7/18).
