Rockets: Is Tilman Fertitta financially prepared for a John Wall buyout?

How a buyout would help Houston Rockets owner Tilman Fertitta

Buying out Wall’s contract will surely put an end to any narratives regarding Rockets owner Tilman Fertitta being cheap, which is the predominant school of thought regarding Fertitta. This was heightened after Chris Paul stated that the Rockets’ decision to let Trevor Ariza bolt in 2018 was the downfall of the Rockets, as many believe Fertitta could have prevented that by paying Ariza and going into the luxury tax (granted, Paul could have also made it possible by taking less than the 4-year deal worth $160 million that he took).

A quick scope of recent buy-outs shows why a Wall buyout would reverse Fertitta’s reputation, as it’s rare for players to give back much when they agree to buyouts. For example, Andre Drummond, who agreed to a buyout with the Cleveland Cavaliers this season, was in the final year of a $28.5 million deal and gave back just $794,536 to become an unrestricted free agent (roughly 3%).

Another recent buyout involves the recently-retired LaMarcus Aldridge, who was owed $24 million by the San Antonio Spurs this season, and agreed to give back $5.8 million (24%). These varying percentages provide proof of how buyouts are truly case-by-case.

Based on those percentages, Wall would be giving back just $2.75 million, if he were to go the route of Drummond, and $22.1 million if he were to be generous, like Aldridge. Both of those examples involve players in the final year of their deals, which is the common scenario for buyouts.

For a more accurate gauge of Wall’s situation, in which he’d be leaving multiple years on the table, we’d have to look at other examples.

Next: More relevant examples for Wall's situation