Rockets Owner OK Paying Tax For Chance At Title

Even after signing Joe Johnson and Brandan Wright this week, the Rockets’ team salary remains slightly below the luxury tax threshold for 2017/18. Next season, however, if the team wants to re-sign players like Chris Paul, Clint Capela, and Trevor Ariza – not to mention possibly making a run at LeBron James – going well into tax territory is a virtual lock.

New Rockets owner Tilman Fertitta, who paid $2.2 billion to buy the franchise from Leslie Alexander before the ’17/18 season got underway, isn’t particularly looking forward to ponying up more money for a luxury tax bill, but he tells Sam Amick of USA Today that he’s ready to do so if it means having a legit chance to win championships.

“The NBA is a tough business,” Fertitta said. “And you can go from making money to losing money very quickly. Everybody has to remember, I did pay $2.2 billion for this team. I didn’t pay $80MM for it, okay? And I’m not worth $20 billion, but I have no problem paying luxury tax if I truly think that it truly gives me the chance to win the championship next year, okay?”

Fertitta’s comments suggest that he won’t simply hand over a blank check to team management — he pointed out that this year’s team is a legit championship contender without team salary going over the tax threshold, hinting that the league’s highest-paid teams aren’t always its best. Still, the Rockets owner has faith that GM Daryl Morey will help him invest his money wisely. According to Morey, the two men have already had conversations about next year’s payroll.

“We’ve talked through (the luxury tax),” Morey said. “We’re going to be in the tax next year, and…nothing’s going to hold him back from putting together a championship team. He obviously has the money; he just paid the highest amount ever for a team.”

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