Tag: Rafael Stone

Rockets reportedly plan to spend taxpayer Mid-Level Exception

The Rockets reportedly plan to spend the full taxpayer Mid-Level Exception, worth ~$5.7 million, and would like a “Capela lite” big man.

Led by new GM Rafael Stone, the Houston Rockets reportedly plan to spend their taxpayer Mid-Level Exception (MLE) this offseason as they seek to upgrade the roster around James Harden and Russell Westbrook.

This year’s precise taxpayer MLE level has yet to be finalized, but it was at approximately $5.7 million last season. There’s a larger non-taxpayer MLE available to teams at roughly $9.2 million, but it implements a hard salary cap that cannot be exceeded under any circumstances. Thus, using the taxpayer MLE offers the most flexibility for all scenarios.

For teams like the Rockets who are above the NBA’s salary cap, the MLE is the top financial tool available for upgrading their roster.

ESPN reporter Tim MacMahon, who regularly covers the Rockets, said this on Brian Windhorst’s latest The Hoop Collective podcast:

They do plan to spend the $5.7 million. That’s their Mid-Level Exception without hard-capping themselves. Now, I was told last year that they planned on spending their Mid-Level, and the year before. So, it’s one of those… believe it when you see it. But, that’s what they’re saying.

The other thing is, they would like to have a [Clint] Capela-lite type of center on the roster. Not necessarily in the starting lineup, but on the roster, they want to at least have the ability to play different styles. Not just the all small, all the time. I was told that was the plan last year, when they made the Covington trade [at the February deadline]. They thought they could backfill that spot. The name that was brought up to me was Nerlens Noel. They thought they could get a deal done with OKC at the deadline to get Noel. That didn’t happen. They had other deals that also fell through.

Noel has been a productive player in OKC the last couple years on a minimum [contract]. He can catch lobs, he can switch defensively, and he can give them a different look as a guy coming off that bench.

The Rockets did spend a portion of their MLE last offseason to give a three-year contract to promising young forward Danuel House Jr., who was very unlikely to accept a minimum offer. Because House had only signed with Houston during the 2018-19 season, they did not have any financial tool (such as Bird rights) outside of an exception to retain him. So while the MLE was largely used, it didn’t bring in a roster upgrade.

But this offseason, none of Houston’s internal free agents without Bird rights have anywhere near the market value that House did in 2019.

Thus, if Stone truly has the approval of owner Tilman Fertitta to spend that taxpayer MLE, Houston should be able to bring in a capable role player worthy of rotation minutes next season. Spending the MLE would likely push the Rockets into luxury tax territory, which they’ve yet to pay since Fertitta officially became owner in October 2017.

Luxury tax levels for 2020-21 have yet to be set, with negotiations still ongoing due to unexpected revenue losses from COVID-19.

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New Rockets GM Rafael Stone has taken lead on coaching search

Though Daryl Morey didn’t publicly reveal his departure plans until Thursday, his replacement has already been running the coaching search.

To most people around the NBA, Thursday’s departure announcement from veteran Houston Rockets GM Daryl Morey came as a shock.

To the Rockets, though, it’s apparently old news.

With Morey telling owner Tilman Fertitta of his plans shortly after the conclusion of Houston’s 2020 playoff run, new GM Rafael Stone has already begun taking the lead within basketball operations.

Via Kelly Iko and Sam Amick of The Athletic, here’s what that has meant for the ongoing search for a head coach to replace Mike D’Antoni:

Prior to the coaching search, Fertitta had said that Morey would have a large influence in picking the next Rockets head coach, but The Athletic has learned that Morey’s role in the coaching search had diminished over the past few weeks and he had been operating essentially as a consultant. The Rockets have interviewed Jeff Van Gundy, Ty Lue, Kenny Atkinson, Stephen Silas, David Vanterpool, Wes Unseld Jr., and John Lucas so far. …

Typically, the Rockets front office has operated as a joint venture, with Morey, Stone, Eli Witus, and Monte McNair (now with Sacramento) offering individual input along with ownership before arriving at a decision. So far, however, it’s been Stone — and not Morey — running point during the interview process.

Of that group, Van Gundy, Silas, and Lucas are believed to be the current frontrunners, according to Tim MacMahon of ESPN. Both Van Gundy and Silas have already had multiple days of interviews.

There is no definitive timetable for a hire to be made. However, with Morey’s contract expiring Nov. 1, it appears that the Rockets plan to finalize the head coaching decision before that date.

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Rockets’ coaching candidates knew of Daryl Morey’s impending exit

News of the GM’s departure came as a shock to many Rockets fans, but the coaching candidates were made aware throughout the process.

After 13 years as the lead basketball operations executive in Houston, Rockets GM Daryl Morey is stepping down. While the news shocked many fans, it doesn’t appear likely to affect the team’s coaching search.

Per Jonathan Feigen of the Houston Chronicle, that’s because candidates were told of Morey’s plans throughout the process.

Feigen writes:

Though Morey did not make his decision to step down public until Thursday and has been involved in the interviews with candidates to succeed Mike D’Antoni as Rockets coach, each of the coaches had been informed throughout the process that Morey expected to leave the team at some point this offseason.

“We’ve been up front with all the coaching candidates we’ve talked to that there was a change coming,” Morey said. “I have been trying to be just an adviser at this point with Rafael [Stone] making the final decision and Tilman [Fertitta] making the final decision.”

The Rockets brought in veteran NBA head coach Jeff Van Gundy for a second interview on Thursday, and they’re doing the same Friday with Dallas assistant Stephen Silas. Recent Rockets assistant John Lucas is also being strongly considered, according to Feigen’s report.

However, Feigen reports that the Rockets could potentially opt to interview additional candidates beyond those three names. Unofficially, this is the “second round” of interviews to replace Mike D’Antoni.

While Morey remains involved in an advisory role, the final decision will be made by new GM Rafael Stone and team ownership.

There is still no definitive timetable for a hire to be made.

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Tilman Fertitta values continuity in replacing Rockets GM Daryl Morey

“As much as I hate for Daryl to leave, I want him to be happy,” Fertitta said. “And at the same time, we’ve got a deep bench.”

Rockets owner Tilman Fertitta said Thursday night that “total continuity” was a big reason for Houston’s decision to replace departing GM Daryl Morey with an internal promotion in Rafael Stone.

Here’s what Fertitta, who purchased the Rockets in 2017 from previous owner Les Alexander, told ESPN’s Tim MacMahon:

It’s total continuity. That’s one of the reasons that we promoted Rafael. You’ve got to understand, Tad Brown’s been the CEO of the franchise for a long time. We’ve had very little turnover [in the front office], and when people have left, it’s been for better positions — basketball people getting GM jobs. There was no reason to even think about going outside of the franchise.

Rafael was here from the very first basketball meeting that I ever had, sitting right next to Daryl. I love the way that Daryl and Rafe would dispute something that we would all be talking about. It’s always been a collaborative effort and very positive. As much as I hate for Daryl to leave, I want him to be happy. And at the same time, we’ve got a deep bench. With Rafael and Eli [Witus], I feel very, very comfortable.

The complete ESPN story can be read here.

Morey is staying in his GM post — which he’s been in since 2007 — until Nov. 1 to assist Stone, Witus, and the rest of Houston’s front office as they complete the coaching search to replace Mike D’Antoni.

The timetable for a coaching hire is not yet clear. The finalists are believed to be Jeff Van Gundy, Stephen Silas, and John Lucas.

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Meet Rafael Stone and Eli Witus, the Rockets’ new top executives

Rafael Stone becomes the 10th current Black executive to hold the GM title in the NBA, while Witus will serve as his top lieutenant.

With the sudden departure of Daryl Morey, the Houston Rockets will have a new general manager for the first time since early 2007.

Houston’s new GM is Rafael Stone, and he becomes just the 10th current Black executive to hold that title in the NBA. Most recently, Stone was executive vice president of basketball operations, effectively making him Morey’s top lieutenant with the Rockets last season.

Eli Witus. who was previously assistant GM, will be promoted into Stone’s prior role as the No. 2 man in basketball operations.

Here’s how longtime Houston Chronicle beat writer Jonathan Feigen describes the recent roles of Stone and Witus in the front office:

Stone, the team’s former general counsel, has become increasingly involved in the Rockets’ front office decision making for several years along with Witus and Monte McNair, who became general manager with the Sacramento Kings.

McNair served more as a liaison with the coaching staff, typically traveling with the team, with Stone and Witus working more closely with Morey and former Rockets executive Gersson Rosas, the president of basketball operations with the Minnesota Timberwolves.

Stone joined the Rockets in 2005 as general counsel (which actually predates the hiring of Morey), and he increasingly took on larger roles within basketball operations over the years. Meanwhile, Witus joined the team three years later. He started as a statistical analyst in 2008, and has since led the Rockets’ analytics department and cap management since his promotion to vice president of basketball operations in 2013.

When Stone and Witus were promoted to their most recent positions in April 2019 (to help compensate for the loss of Gersson Rosas, who took the top basketball operations job in Minnesota), here’s what Morey said:

We are very fortunate to have Rafael and Eli. They work wonderfully together providing strategic insight and analysis. Collectively, they are on the cutting edge of basketball decision making and have been key to our ability to put the team in the place we are today. It is important to us organizationally to be flexible and creative as we find ways to add to our roster, and these two are at the forefront of that effort.

Whether it be acquiring Chris Paul two years ago or signing Clint Capela this summer, we are leaning on them to identify winning players and figure out the best method of fitting them into our team.

Prior to joining the Rockets and Toyota Center, Stone practiced in Dewey Ballantine LLP’s mergers and acquisitions and capital markets group. While working in that capacity with Dewey Ballantine, Stone represented acquirers, targets, investment banks, investors, and issuers in numerous acquisitions and financings.

A native of Seattle, Washington, Stone received a bachelor’s degree in history and political science from Williams College in 1994 and graduated from Stanford Law School in 1997. He also played varsity basketball at Williams College for four years. Stone currently resides in Houston with his wife, Felicia, and their three children.

Considering the experience that Stone and Witus have with Morey over the years, the Rockets are not expected to see a major transition in their innovative, analytics-driven approach. Under Morey’s watch, the Rockets have the NBA’s longest streak of consecutive playoff berths.

Morey is staying on with the Rockets in a short-term advisory role as the front office completes its search for a new head coach. The decision to leave was entirely Morey’s call, as confirmed to Rockets Wire by a team source who was not authorized to speak publicly on the situation.

As expected, Houston owner Tilman Fertitta and CEO Tad Brown will remain in their usual places at the top of the organizational hierarchy.

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