October 9, 2018 Starring:Tilman Fertitta James Harden Chris Paul
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October 9, 2018 a way to buy the Tennessee Titans for a few passion for sole ownership of his businesses Starring:Tilman Fertitta years now. And you know, if not them, maybe is a direct contrast to the ownership groups James Harden the New Orleans Saints. that typically buys pro sports teams now. Chris Paul Daryl Morey Fertitta started as a restaurant man from Fertitta’s authority and wealth are akin to the coastal town of Galveston, Texas, and a Steve Ballmer or Mark Cuban, but he is The DirecTV signal on Tilman Fertitta’s now sits atop a hospitality conglomerate, determined to stand apart from those two Gulfstream G550 jet keeps cutting in and out, Landry’s Inc., which comprises casinos, both in personality and practice. testing his patience. It’s a Sunday afternoon in retail shopping, luxury hotels, and hundreds September and the new owner of the Houston of restaurants. At 60 years old, he is the He bought high because Houston is one Rockets is cussing at a shaky satellite signal sole owner of everything in his empire. He of the best teams in the NBA, loaded with that’s preventing him from watching the late has no partners and no investors. Forbes elite talent in James Harden, Chris Paul, slate of NFL games, just like countless other estimates his net worth at $4.5 billion dollars, and the newly acquired Carmelo Anthony. normal American sports fans are doing at this and recently dubbed him the “world’s richest The Rockets are not a teardown project or very moment. It’s just this TV happens to be restaurateur.” a brand in need of renovating; Fertitta has on a jet, 30,000 feet in the air, en route from a proven winner, but it’s one without a world Lubbock, Texas, to Los Angeles. And right now, Tilman Fertitta also owns championship since 1995, and one that lives the sport of basketball in his home city. He in the brutal Western Conference. Like this, time spent with Fertitta is a series of purchased the Houston Rockets for a record painfully normal moments set in totally alien $2.2 billion in 2017 — the latest addition to Fertitta is flying to Los Angeles to spend a few circumstances: He’s a normal guy who likes an empire Fertitta has built over the last four days with his family for his daughter’s 21st to meet up with a friend after work for a drink, decades. birthday. Fertitta’s other G5 is still over an but that friend is a Wall Street CEO in a SoHo hour behind us — yeah, the other G5 — with penthouse, and the topic of helicopter-friendly No one with his own reality show (let alone his family in tow from Houston. weather comes up. When he asks about the one called Billion Dollar Buyer) could be game day tailgating around Nissan Stadium in considered low-profile, but there’s uncertainty He’d been in Lubbock the day prior to catch Nashville, it’s not because he’s interested in among fans of the Rockets and the league his beloved University of Houston football a road trip, but because he’s wanted to find as to what kind of owner Fertitta will be. His team playing Texas Tech. Houston lost a shootout, 63-49, and his first words of Except he’s not. That story is how the Casonio inherited, namely Paul and Harden. small talk before takeoff are: “No defense Resort and Hotel in Lake Charles, Louisiana, yesterday.” just over the Texas border, became his fifth “[Fertitta] has incredible relationships with Golden Nugget Casino. investors since he has continuously made He looks out the window as the plane crosses them a lot of money,” says Rich Handler, over into California, pondering a question And no, that’s not usually how buying a casino chairman of the board and CEO of Jefferies about his real motive for spending billions of works. Group, where he is the longest-tenured CEO his hard-earned dollars on a basketball team. on Wall Street. He’s also Fertitta’s neighbor in Pure fandom? A family legacy for his children? In September, the Washington Post ran New York. “He takes great pride in that. When Portfolio diversification? an article speculating the Rockets might you like your investors, your financier, your be entering budget mode because of their key operating people, and the businesses you “It’s just paper in the bank. You’ve already offseason moves this summer, trading are acquiring … that can be a lot of fun.” lived well, so what do you have? If I sold Ryan Anderson and De’Anthony Melton to everything tomorrow and I’m flying around on the Phoenix Suns for Brandon Knight and But he hired none of these people. And a plane or whatever, so what? You don’t have Marquese Chriss, as well as letting Trevor despite a payroll in the luxury tax he’s publicly your fiefdom. You’re bored. I fear boredom, Ariza and Luc Mbah a Moute walk in free defended as a means to a championship end, 100 percent.” agency. When asked about it, the DirecTV he hasn’t dumped out the garbage on Morey remote earns a reprieve from Fertitta’s or Brown or anyone else. He’s not worried He can come off as light-hearted or even frustration. He puts his phone down on the about silverware right now. sarcastic on the subject of spending his table in front of him. money, but he is not someone who easily On his plane this particular Sunday in parts with it. Tilman Fertitta is a dealmaker. “Why would anyone think that?” he asks. September, the Rockets’ biggest headline He is ruthless. And whenever he is pressed “Why?” of the Fertitta era is the signing of Carmelo to define that role or explain why he’s Anthony to a one-year, $2.4 million deal. so successful in it, he always brings the This notion of “budget mode” offends Fertitta conversation back home. as a restaurateur, as a hotelier, as the guy “I promise, Melo is truly excited about playing who started by waiting tables and working the for Houston this year, and me and James and “Look, we are Texans,” he says. “We are kitchen in a Galveston seafood joint his family Chris and the rest of the organization are Wildcatters.” owned, and the guy who welcomes guests excited about him being here. I think Carmelo in the glossy Landry’s magazine on the hotel is going to have a great year,” he says. Wildcatter was the nickname given to Texas desk to enjoy an unforgettable weekend at his oil speculators in the 1800s who would risk casinos and resorts and all the many, many Yeah, maybe. But grabbing Anthony on a flyer bankruptcy by quickly moving their drill things he owns that are designed to take doesn’t exactly define an NBA legacy, or even operations between cheap parcels of land, people’s money for a weekend or a night. start one. While Morey is the architect and looking for oil in places where none was Brown the forward-facing executive, Fertitta is thought to exist. “I would have a problem asking people to still largely unknown as a basketball man. watch a purposefully bad team. In a city like “I’m a Wildcatter,” he continues. “Wildcatters Houston, that’s as competitive as it is for the And in an offseason in which the Los Angeles are fearless. You’ll go drill and get a dry hole entertainment dollar, you would be shocked at Lakers signed LeBron James and the and you move on to the next one. You keep how your fans can leave you so quick. Then juggernaut Golden State Warriors got deeper, drilling holes until you run out of money or get you have to spend years trying to get them adding all-star DeMarcus Cousins to an rich. back.” already loaded roster, there is the sense that the Rockets have to do something. “The people who have come here decided Throughout his rise in the hospitality industry, to take on that mentality, in Texas and in Fertitta became known for taking small or What’s more, Fertitta has yet to make a move Houston. We’re Texans. We will do whatever underperforming businesses, overhauling that would make them his Rockets. it takes to succeed.” supply chains and managers, and raking through details to create profitability. An oft- “Like what?” he asks. Fertitta further illustrates this mentality by told story about Fertitta is, early in his career, telling a story: “When a casino outside of he would show up at one of his restaurants Like if Kevin Durant elects to leave Golden Houston became available and I heard the on a busy night, tip over trash cans behind State next year, maybe that? [Federal Trade Commission] wasn’t going the building and have employees search for to let [another company] buy it, I picked up silverware accidentally thrown away, then “Ah. Like Jimmy Butler,” he says. the phone and called the CEO and said, ‘I’ll leave them a heavy tip after they cleaned up. come meet with you right now and I’ll put up This is days before it breaks publicly that 50 million dollars hard money right now. And However, none of this applies to the state of Timberwolves star Butler wants out of regardless if it works or not, that’s your $50 the Houston Rockets, a 65-win franchise that Minnesota.