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Rockets Owner Says Team Will Be Cognizant Of Luxury Tax Penalties

Fertitta said he will not let $20M of tax penalties stop him from building a championship teamNBAE/GETTY IMAGES

The Rockets this season will have the highest payroll in franchise history at roughly $143M, and Owner Tilman Fertitta said that the "punitive nature of the NBA's rules for teams repeatedly paying luxury taxes will impact decision-making" beyond the '18-19 campaign, according to Jonathan Feigen of the HOUSTON CHRONICLE. Fertitta said of the penalties, "We're in it a lot this year. It's a horrible hindrance. It's just brutal. You can take $5 million and look up and it cost you $20 million. At some point, you have to be smart and you can't get in the repeater tax, which happens when you are in the luxury tax three years (of four)." He added, "At some point, you have to do some things so you're never in the repeater tax. It's something you have to be cognizant of. At the same time a team is built on superstars. ... This year, in order to get back to the Western Conference Finals, we're going to have to be in it many millions of dollars." Fertitta said he is "here to win championships" and is "not going to let five or 10 or 15 or 20 million dollars make the difference." Fertitta: "If you do win the championship, that's easy money back. Now, if we are in the luxury tax every year and barely getting in the playoffs and a first-round game is a struggle, I'm going to find me a new general manager" (HOUSTON CHRONICLE, 9/25).

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