Tilman Fertitta will still be able to own the Houston Rockets while serving in President Donald Trump’s cabinet.
Fertitta, who is CEO of Landry’s, a restaurant and entertainment company, will resign from his role to comply with his new job, U.S. ambassador to Italy and San Marino, a letter he wrote to the State Department revealed. In the letter, which was dated March 16, Fertitta details that he is eligible for severance from Fertitta Entertainment, his umbrella company for his businesses, in light of his resignation but will forgo it and still receive a lump sum payment from deferred compensation. The letter was first reported by the Houston Chronicle.
“I will continue to retain a passive interest in these entities, but I will not provide services material to the production of income,” Fertitta wrote. “Instead, I will receive only passive investment income. With regard to each of these entities, I will not participate personally and substantially in any particular matter that to my knowledge has a direct and predicable effect on the financial interests of the entity or its underlying holdings, unless I first obtain a written waiver pursuant to (the law).”
The same appears to apply to the Rockets. Fertitta can retain ownership of the franchise, but can’t participate in day-to-day operations of the team. The situation is similar to New York Jets owner Woody Johnson giving the reins to his brother, Christopher, while he served as Trump’s ambassador to the U.K. in his first term. The State Department did not respond to a request for comment.
“I have been advised that during my service as Ambassador, the Embassy may address particular matters affecting the financial interests of the National Basketball Association,” Fertitta said in the letter. “The agency has determined that it is not necessary at this time for me to divest my interests in the Houston Rockets because my recusal from particular matters in which these interests may pose a conflict of interest will not substantially limit my ability to perform the essential duties of Ambassador.”
A Senate confirmation has yet to be scheduled for Fertitta’s new job. Assuming he gets approved, Fertitta’s 30-year-old son Patrick, who is the team’s alternate governor, will handle ownership duties. To an extent, he already has been. Patrick Fertitta has been ownership’s day-to-day point person for the Rockets for multiple seasons; as such, Tilman’s post won’t mean much change with the team’s operations. The NBA did not respond to a request for comment.
“He’s got all the juice,” an NBA source once told The Athletic of Patrick.
The elder Fertitta would be stepping away from the organization during a breakthrough season for the team. The Rockets are currently second in the Western Conference with a 46–26 record and have clinched a playoff berth for the first time since the 2020 NBA bubble, when James Harden was still the team’s star player.
The Fertittas also led a bid to bring the WNBA back to Houston, which is still pending. It’s unknown if Tilman Fertitta’s recusal would impact the city’s chances of getting the bid, but any expansion team wouldn’t start play for a number of years. A WNBA spokesperson didn’t respond to a request for comment about Fertitta’s involvement impacting the bid.
Tilman Fertitta, who has an estimated net worth of $12.8 billion, was a big donor to Trump’s campaign, contributing more than $420,000 to PACs that backed Trump, as well as $13,200 to PACs that backed former Vice President and Democratic nominee Kamala Harris.
