$2.2 Billion Deal for Rockets Is a Casino Mogul’s Bet on Houston
On that basis, he generated a healthy internal rate of return of 15 percent, Reuters
Breakingviews estimates, assuming he did not collect any dividends along the way
The owner of both the Golden Nugget gambling enterprise
and the Landry’s restaurant empire, Tilman J. Fertitta, will pay $2.2 billion for the Houston Rockets basketball team.
For a long time, sports franchises were considered little more than vanity acquisitions,
but lucrative television contracts have changed the calculus a bit.
As he decamped from his role as chief executive of Microsoft, he splashed out $2 billion for the Los Angeles Clippers in August 2014.