Houston Rockets owner Les Alexander has announced he intends on selling the franchise and it would not be a surprise to see the purchase price push $2 billion. There should be no shortage of interested bidders as NBA teams are cashing in. Forbes’ 2017 valuations project a median operating profit of $23 million/team. On the court, the team is set-up for a short-term run, having signed superstar James Harden to an extension and trading for all-star Chris Paul. Off the court, the Rockets are among the most popular NBA teams in Asia, making them attractive to potential buyers both domestically and abroad.
Howie Long-Short: Alexander purchased the team in 1993 for $85 million. Forbes values it at $1.65 billion today. A return of 18x your initial investment, in 25 years, isn’t bad.
Fan Marino: I keep hearing the Harden extension sold as a reason to buy the franchise. Are the Harden lead Rockets, as currently constructed, beating Golden State? If the answer is no, why do you want to pay him $228 million over the next 6 years?