Employee puts Fertitta on blast for not paying them

Just like 2008, Banks were giving everyone loan to buy a house because Banks thought the asset(house) would always go out.

We know how that turned out.

Banks and Les gave Tilman $2 billions in loan to buy Rockets and Tilman had to pay 8% to 9% interest on those loans , when rate were 6% for most other people. I guess they probably knew it was risky for them to ask for 8% interest when rate for those loans were 6% back then

 

https://www.forbes.com/sites/mikeoz...ston-rockets-have-fallen-behind/#539179718a33

Written in 2018 and Loans were already in trouble 2 years ago! His Debt was Junk Bond status already in 2018. You can't get 8.75% interest on a Note unless it's junk



Nov 15, 2018,11:44am EST
Some Investors Who Financed Fertitta's Purchase Of Houston Rockets Have Fallen Behind






The $1.4 billion in debt raised by Tilman Fertitta a little over a year ago with the sale of bonds enabled the billionaire restaurant and casino owner to pay himself the dividend he needed to buy the Houston Rockets for $2.2 billion—a record price for an NBA franchise.

As Texas Monthly reported shortly after the Rockets deal was completed: “Rather than selling equity in the company, which would have meant giving up full ownership, Fertitta decided to make up that difference by issuing corporate bonds and bank debt. It’s a strategy he’s used time and again since taking Landry’s and the Golden Nugget private, in 2010. ‘He has a very, very good reputation and track record in the bond market,’ said Rich Handler, the CEO of Jefferies, which served as the lead underwriter of the bond sales. ‘We’ve done a lot of deals with him, and the lenders have made a lot of money.’”

Fertitta sold $745 million of bonds maturing in 2024 at an interest rate of 6.75%, and $670 million of bonds maturing in 2025 at 8.75%.

The bonds are the obligation of Golden Nugget, Inc. Bondholders have no recourse to the basketball team. GNI, wholly owned by Fertitta, owns and operates the Golden Nugget hotel, casino and entertainment resorts in downtown Las Vegas and Laughlin, Nevada, and the Lake Charles property in Louisiana. The company also owns and operates dining restaurants, mostly casual, such as Landry’s Seafood House, ChartHouse, Saltgrass Steak House and Rainforest Café.


The Rockets made it to the Western Conference finals last season. But not all of the bond buyers have fared nearly as well. The price of the 2024s has fallen from $102 to $98. Or looked at another way, the yield on the 2024s has increased to 7.1% from 6.75%. Yes, bonds in general have been hammered this year due to climbing interest rates, but other restaurants, like Yum Brands and Wendy’s, have comparable bonds with yields more than 100 basis points lower. Investors may also have soured a bit when Fertitta was rebuffed in his attempt to buy Caesars Entertainment this month.

Fertitta has a great track record. But getting the bondholders a nice return on their capital is not going to be a layup.

 

damn all of this basically tracks in depth, the miserable times since Tilman became the owner

https://fadeawayfinance.com/category/tilman-fertitta-series/

 

broke arse tilman time to sell the team

 

So Tilman basically bought the Rockets on a LAYAWAY PLAN.

LOL. How the hell did the NBA allow this to happen??? I think this is the last time the NBA allows someone to buy a team using 90% Debt financing

BROKE AF aka "LIQUIDITY CRIS TILMAN"

 

all the ****ers here talking about "he's not ducking the LT" ---well wtf would you do if you barely paid for the team? Its nothing but a sole source of profit

 

whoever this is, this comment wins

 

correct

 

wow...Dude is $5 billion in total debt and his team purchase is from using his Casino and Bubba Gump as collateral,which are now worth about 30% of what they were worth 4 weeks ago, but he still refuse to sell part ownership to help pay his debt and payroll??? SHUT UP AND LISTEN!

"Tilman Fertitta’s companies have furloughed about 70% of employees. He’s the sole owner of the Rockets and will not consider minority partners as a matter of pride. "

 

Twitter is a lot like CF...talking about how Tilman is BROKE AF

·

Replying to
@RedNinetyFour
Yeah, Tillman is broke



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58m
Replying to
@RedNinetyFour
is he going to get a bailout?

 

What do u expect, Tilman bought the team on credit, hopefully we win a title before the wheels fall off on Harden and westbrook

 

Leverage is the name of the game. Robbing Peter to pay Paul works until a credit crisis or pandemic hits.

 

Rockets owner Tilman Fertitta is the worst type of boss (Breakdown of his terrible handling of COVID-19)

 

It's not going to be a layup or open 3.

 

This is sad when he says he wants to hire everyone back. After all said and done, they will be hiring lower wage workers and cancel the high salary workers.

 

Wow

Horrible

#140 richest man in America, but firing 40,000 employee

Us low life risk death and go to work, while Mr rich
Tell us to go to work so he will have revenue

 

Tilman is a ******* but him furloughing employees right now ISN'T the reason why he's an *******.

The fact that he is a billionaire doesn’t mean he has a Scrooge McDuck vault filled with a billion dollars to pay them indefinitely. His wealth is tied to the fact that he owns successful businesses. Unfortunately almost all of those businesses (Restaurants & Casinos) are completely shut down right now.

If he decides to keep paying his employees full wages to do absolutely nothing while his businesses are generating zero revenue they would all go bankrupt really quickly. That means when this quarantine ends his workers would have no jobs to come back to.

Fertitta is a huge *******, but this furlough is obviously the right move for his businesses and his workers.

 

If he hypothetically paid all his employees currently at 10 dollars an hour which is at or near min wage, that would be $400,000 an hour in wages for no work. How much cash do you think he has saved up where he can pay that hourly rate when his businesses are currently generating zero revenue?

 

He's worth $4.6 billion, #140 RICHEST person in AMERICA.

He can afford the money. That's like you and I tipping someone $5 for delivery when you're rich and worth $4.6 billion

Remember, he kept saying, "I have an offer to sell half the team for $1 billion, but I refused because I dont' need the money. I have a lot of liquidity. I'm even thinking of buying back the debt because I can make money off it. I have plenty of cash flow to survive this."

 

He doesn't need $1 billion in CASH because he's RICH and has plenty of LIQUIDITY.

Pay your hourly, dude!!!!


"
Fertitta purchased the Rockets in October of 2017 for a then-record $2.2 billion. Fertitta reportedly sold over $1.4 billion in bonds to finance the purchase from Les Alexander. He’s been the team’s sole owner since that point.

McMahon reports that Fertitta won’t consider minority partners “as a matter of pride”. Under Fertitta’s ownership, Houston has had to be cautious of exceeding the NBA’s luxury tax. Rockets General Manager Daryl Morey has made several trades over the past few seasons to dodge the tax."