Do you really think Fertitta is going to pay the luxury tax the next four seasons in a row?

I honestly don’t think Tilman pays the luxury tax. I think he’s a cheap owner, I’ve worked at one of his restaurants and just the way he comes off is somewhat cheap and arrogant AF.

 

Hey, did you guys know his name is spelled Tilman Fertitta? Not sure if anyone has mentioned it yet in this thread. I'm sure I would have seen it if it was mentioned once.


Anyways, thanks to Bima for giving the correct repeater tax which isn't until the 2021-22 season. I got a bit worried if it was a season earlier, so that's a bit of a relief. I think he definitely pays it if the Rockets win a championship by then. Daryl Morey has done a fantastic job managing the finances, and he's also realistic about his team. I'm sure if we don't have a championship caliber team then he'll let Fertitta know in which case we'll probably tear down whatever team we have to get under the luxury tax. I believe he's willing to pay the repeater tax if the team can win a championship. Otherwise, no.

This off-season is going to be interesting depending on what Ariza, Paul, and Capela get. Also interesting to see if Daryl can get out of Anderson's contract.

 

How do you think Fertitta would feel if he got fostered again?

So yes I think he will pay.

 

This is a good way to remember. One "T" followed by two.

I shall never forget

 

but does Tillllman eat his fries with mayo?

 

Is Tellman Forgetta in financial trouble??

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He aint payin the tax unless we get Lebron. That's why I've been cautious in my expectations this off-season because it's likely we have some sort of worst case scenario when Lebron chooses to go somewhere else and we have to let Capela walk.

 

Even without the repeater tax if they bring everyone back and Max cp3 and Clint it's going to be a massive tax bill.

 

He wouldn't have paid 2 Billion on a ready made team if he wasn't!

 

As I've been saying all over the place - Tillman is a businessman - he will not waste money frivolously...
I think he will pay luxury tax money - including repeater... but not to keep Ryan Anderson on the roster...

There will be fallout - this year or next - if we cant move Ryno, I dont see Tillman paying these 100m+ penalties year after year... maybe a year or maybe two as we hammer the window... but paying CP3 40M + penalties - 4 or 5 years from now? naw... thats just stupid...

Unfortunately, fans have unrealistic expectations - and no appreciation for the actual dollars and cents/sense of it all... lol

 

people dont realize - 100M+ (purported luxury charges for next year alone) = 5% of what he paid for the entire franchise... pay that for 2 or 3 years... and you've essentially flushed 10-15% of your teams total value away... in just 2 or 3 years... that aint gonna happen... bad business...

 

Business is not static. That's like saying marketing is flushing money away. In sports, there is no better marketing for increasing future dollars/value than winning a title. The team sells itself.

Read the following quote ...

^ true

Yeah, I'm pretty sure every business owner can put real numbers to this residual value ...

I'm also sure Morey (and all GMs) can blow up a team to get under the tax, anytime they feel a championship window has passed. And they don't feel like tax after last year is throwing money away.

Oh, and I'm convinced you're one of the posters who actually misspells his name on purpose. admit it!

 

The Cavaliers are the perfect example of a team that can prove the residual financial benefit of winning a title.

 

Even the Warriors. I would love to see a breakdown of their revenues from 2011-2014 versus 2015-2018.

Once you get the entire Kobe-fans bandwagon and Asian bandwagon going that money is going to pay off any luxury tax bill several times over.

 

The Warriors as well, but they have an advantage that they are in California. I like the Cavs better because their market is otherwise not good at all.

 

If LBJ wants to play in Houston and he does not want to pay for luxury tax, I'm not willing to pay for any Fertitas resto or any business either.

 

The answer to this question differs from year to year based on the results of that year and the current landscape of the NBA. Do we have LeBron? How far did we make it in the previous year? Is Chris Paul declining, if so, how fast? Have the warriors broken up their core? Is there a new superteam better than the Rockets? How much over the tax are we talking about here?

To answer generally I think the answer is yes, he will be willing to pay it if the team success is there, and our championship chances are good. So that's what I voted in the poll.

 

Classic fan fantasy/fallacy. You don't get billions by not thinking about the value and return of the money you spend. Fans always want their owners to spend no matter what, yet complain when ticket prices go up accordingly. Meaning they aren't willing to do it themselves, yet expect the owners too. It also isn't conducive to long term success. The only sports team that ever really spent frivolously and won anything was the Yankees, and that's because they made soooo much more money than any other baseball team. That isn't the case in any other sport, with a salary cap, so owners/GM's MUST think about things like this.

As for the answer to the question, I don't even think 2021, or the taxes, are really the issue. It is whether CP3 is worth $40M a year during years 3, 4, and 5 of that contract. Does anyone actually think the answer to that is 'yes'? ONLY if the expectation is that the NBA salary cap goes up tremendously. Even then...is CP3 worth LBJ money?? This is a real dilemma for ownership. Yes, they want to win. Yes, they want to keep CP3. Yes, CP3 had an expectation to get paid. BUT...is that salary and that time frame worth it? No, it isn't. Rockets might get their money's worth during years 1 and 2 (and even that is not a sure thing, but almost certainly would not during years 3, 4, and 5.

 

That's a fair answer. I am sure Morey has a matrix of avenues the team could go and pivot depending on the landscape.

This is not something I worry too much about because I trust the Rockets management team enough that they have already anticipated the ramifications of all of this.