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.
Why The Houston Rockets Will Become The NBA’s Next $2 Billion Franchise
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?