Fertitta sees long-term relationship with Rockets

Tilman Fertitta was boating off Marina Del Rey when he got the call from the Houston Rockets.

"Can you come in?" CEO Tad Brown asked the Houston billionaire, who was in California shooting an episode for his reality television show, "Billion Dollar Buyer."

Fertitta was sick, and Hurricane Harvey was barreling toward his hometown. So Brown delivered the news via FaceTime: Fertitta had beat out a dozen serious bidders to become the Rockets' new owner.

Fertitta put his head down and started to cry, Brown recalled Tuesday during a festive news conference complete with confetti, charcuterie, a celebrated astronaut and a "Billion Dollar Buyer" film crew.

The 60-year-old Houston native had been a Rockets fan since he was in junior high. He tried to buy the team 24 years ago but said he was "out-lawyered" by former owner Leslie Alexander. Not this time.

"We couldn't sleep over this deal, it was so bad," Fertitta recalled during the news conference Tuesday. "It's because you want something so bad and you don't want to lose it."

Fertitta paid $2.2 billion, the most anyone has spent for a professional sports team in North America. The deal closed Friday after less than three months.

"There's never been a sports team sold for less from the time it was bought," Fertitta said. "While everyone else was trying to figure out the numbers, I went in and figured out the money side of it."

For Fertitta, the purchase of the National Basketball Association team represented his ultimate coup, culminating a career of more than 30 years making multimillion-dollar deals. From a single seafood restaurant in Katy, Fertitta built a $3.4 billion hospitality empire that operates more than 50 restaurant brands, including Landry's, McCormick & Schmick's and Morton's The Steakhouse.

Over the decades, Fertitta has developed an aquarium in downtown Houston; the Pleasure Pier and Kemah Boardwalk in Galveston; a string of Golden Nugget casinos, including one in Lake Charles, La.; and more than 70 restaurants across the Bayou City. Currently he's building The Post Oak, a 35-story luxury mixed-use project that will become headquarters for Landry's.

None of that compares to owning the Rockets, Fertitta said.

"Anybody can go build a boardwalk, an aquarium, tall buildings," he said. "But not anybody can get to own an NBA franchise."

Fertitta negotiated the final details to buy the Rockets during Harvey. In the weeks since the devastating storm, Landry's restaurants fed first responders, and Fertitta donated $1 million to launch a relief fund for employees.

Fertitta said he believes the NBA and world soccer have the widest fan bases internationally.

"The NBA has become this true world sport," Fertitta said. "I would have been scared to pay $2.2 billion to buy an NFL franchise today. The NBA is where it's at."

Fertitta beat out 50 bidders, 12 of them serious, to join the exclusive club of 30 NBA owners. Brown said Alexander liked Fertitta's tenacity and enthusiasm.

"Tilman came in because he was the most passionate about it," Brown said. "He was the most committed to this team, this city, our international reach and our fans in China. We respect the hustle for people who put their passion out on their sleeve and put it all out there."

Fertitta plans to bring his aggressive business style and flair for entertainment to the Rockets. He hopes to cross-promote his various business interests as much as he can, he said.

He also pledged to bring "better food" to Toyota Center and said he would add Landry's restaurant brands there. He did not have any specifics.

"I didn't think the players' cafeteria was very nice, so we're going to fix it," Fertitta said after touring the facilities.

The Toyota Center may also feature products developed by companies on "Billion Dollar Buyer." However, the NBA prohibits its players from appearing on such television programs.

"I'm struggling with this one," Fertitta said. "It's my show, these are my players, but they can't appear in it. I want James and Chris in my show. I don't like it … but I don't break the rules."

Fertitta said he is also open to talking with the National Hockey League about bringing a team to Houston.

"Do I want to see Toyota Center filled up 300 nights a year? Definitely," Fertitta said. "We'll do whatever we can do, but whatever we do will have to make sense."

Tuesday's news conference was attended by Fertitta's brother, their parents, his wife and their four children, as well as such family friends as former NASA astronaut Scott Kelly.

Fertitta called the team a "generational asset" and said he hopes to pass ownership to his four children. Already, Fertitta has begun to leave his mark.

"In 50 years, when I'm not around, I think it'll still be with the Fertitta family," he said. "I think it'll still be here for a long, long time."