Though many sports franchises have had layoffs, employee pay cuts, or sought financial assistance amid the economic fallout of COVID-19, owner Tilman Fertitta says the Houston Rockets aren’t among them.
Though Fertitta has issued thousands of furloughs to workers at his non-Rockets businesses, he made it clear in a new interview with Sam Amick of The Athletic that the basketball team hasn’t been impacted.
Amick said he confirmed that fact with other Rockets officials. He writes:
Meanwhile, the Rockets — according to Fertitta and other Rockets officials — have not had layoffs or pay cuts. “Absolutely not one,” Fertitta said. “We’ve had no pay cuts. We didn’t apply for any funds within the Rockets, governmental or anything.”
Fertitta also highlighted the Rockets’ payroll ($130 million; 13th in the NBA, with Portland first at $137 million), as well as the fact that they’re in the process of building a new practice facility and even bought a 767 plane for the team’s players. To that end, he repeatedly said his Rockets business was “in a silo” of its own that’s entirely separate from his restaurant and casino businesses.
“The Rockets have no problem,” he said. “The Rockets are sitting on a huge revolver and a bunch of cash right now. And the Rockets are able to build up cash, because nobody has to take it out to live on.”
Besides the Rockets, Fertitta’s other businesses include the Landry’s restaurant group and Golden Nugget casino chain. Though Fertitta says the Rockets operate “in a silo,” it should nonetheless be helpful that Friday marked the lifting of the stay-at-home order in Texas. As a result, many of his restaurants are now allowed to reopen at limited capacity.
