After long wait, dream comes true for Fertitta
NBA board gives unanimous approval to purchase of team
Tilman Fertitta had dreamed of this day since he was a child, came close to enjoying it nearly 25 years ago and knew at last that it would come a month before it all became official Friday.
The feeling, however, was new, the emotions deep as his purchase of the Houston Rockets was complete.
For the first time in nearly 25 years, the Rockets are under new management. In a unanimous vote, the NBA Board of Governors on Friday approved the transfer of the Rockets ownership and control of Toyota Center from Leslie Alexander to Fertitta, the Houston-based face of a restaurant empire and a Rockets fan for nearly 50 years.
“It’s totally different,” Fertitta
said of his emotions on Friday. “It feels very special. I was a fan when they were in San Diego (from 1967 to 1970) and I was in junior high school, listening to them on the radio. Today, to realize how special this is, somebody asked me what’s the most the most exciting business thing to happen to you?’ There’s not even a close second.
“I love Landry’s and Landry’s is what made this all possible. It’s great to own a team in your hometown. How many get to own one in their true hometown, where they grew up? Not many get to say that. I feel extremely special.”
Record price for team
Fertitta, 60, paid a record $2.2 billion for the team and control of the operating rights of Toyota Center, becoming the 10th primary owner in Rockets history. The runner-up to Alexander to purchase the Rockets in 1993 from Charlie Thomas, Fertitta called ownership of the Rockets “a life-long dream come true.”
He had become a Rockets fan in the 1970-71 season when a group led by Wayne Duddleston and Billy Goldberg called Texas Sports Investments announced the purchase of the team with a plan to move it — along with former University of Houston star Elvin Hayes — to Houston.
“They had announced they were moving to Houston the next year,” Fertitta said. “As soon as they announced it, you turn on the radio because in junior high, you’re such a big sports fan. I started listening to the Houston Rockets because I knew they were going to be here. Even when I was in elementary school I was an Elvin Hayes fan. I was a University of Houston fan growing up. The Big E played for the San Diego Rockets and they were moving to Houston.
“To look 40 years. It’s a business now, and a hobby and a dream. It’s pretty exciting.”
Fertitta, the chairman and CEO of Landry’s Inc., was an “advisory director” to Alexander in the initial years of his ownership and one of the original minority owners of the Texans.
“Tilman’s passion, commitment to excellence, and unrivaled love for the city of Houston are going to serve him well as a great owner of this proud franchise,” Alexander said in a statement.
He had begun meetings with Rockets leadership in the weeks following the Sept. 5 announcement and met with the team before the start of training camp Sept. 24.
Fertitta’s approval was considered a formality, despite his ownership of Golden Nugget Hotels and Casinos, with several current or former NBA owners also holding stakes in casinos.
Landry’s Inc. includes more than 50 restaurant brands including McCormick & Schmick’s, Chart House, Landry’s Seafood, Saltgrass, Morton’s The Steakhouse, Grotto and Vic & Anthony’s, along with The Westin Downtown and the San Luis Resort and several entertainment venues, including The Kemah Boardwalk and Tower of Americas in San Antonio.
Fertitta’s public profile had increased markedly in recent years even before his record-setting purchase of the Rockets as chairman of the University of Houston Board of Regents. He was instrumental and outspoken in the university’s ultimately unsuccessful bid to join the Big 12 and in the selection of Major Applewhite as football coach.
Fertitta is also the host of the reality cable television show “Billion Dollar Buyer.”
Management in place
Fertitta indicated he would keep the Rockets’ current management team, including CEO Tad Brown and general manager Daryl Morey, in place, and has held meetings since the agreement on the sale of the team with the heads of the team’s business and basketball sides.
“I’ve got a great basketball team,” Fertitta said. “I’ve got a great management team. I can promise you this; they’re going to get a lot of support from me and all of us are going to work together to do whatever we can possibly do to bring another basketball championship to Houston.”
The Rockets, who won the NBA championship in each of the first two seasons of Alexander’s tenure, were considered worth the record setting price — Mavericks owner Mark Cuban said last month that Fertitta picked up a bargain — for a variety of reasons, most off the court.
The Rockets consistently rank in the NBA’s top five in revenue and operating income. They have a favorable lease in Toyota Center that run through 2033 and the arena has undergone many upgrades in the past 15 years to keep it current.
The Houston market is fifth in size of the metropolitan statistical area and eighth in designated media market, the fastest growing market in metropolitan area population among the nation’s top 20 markets.
The Rockets also have extensive ties to foreign markets, particularly in Asia.
The Rockets had the third-best record in the NBA last season and have been bolstered by the addition of Chris Paul, a ninetime All Star. Fellow All Star James Harden is signed through the 2023 season.
Alexander, 73, made his surprise announcement to sell the franchise in July to spend more time with other interests.
Long far more involved with Rockets’ decisionmaking than his reputation, Alexander was less visible as an owner than Fertitta is expected to be, but with a similar management style. Like Alexander, Fertitta is known to be kept well informed about his businesses and makes the final call on a wide variety of decisions, but also has a reputation for empowering his companies’ leadership.
“Leslie has left an indelible mark on Houston sports history,” Fertitta said. “Not only did he bring two championships to our city, he created a winning environment and culture. He is a tough act to follow.”
Fertitta had waited most of a lifetime for the chance that began on Friday.