Houston Rockets

The Houston Rockets appear in Planet Money vs. the NBA’s tanking problem as the historical NBA example that makes [[SportsTanking|tanking]] economically legible. The episode says the 1984 Rockets lost heavily late in the season when Hakeem Olajuwon and Michael Jordan were entering the draft, then selected Olajuwon and later won championships with him.

The Rockets example matters because it shows why bad incentives can persist. Tanking may damage fan experience and league credibility, but for one franchise the upside from a top pick can be enormous.

Connections

• National Basketball Association - league context.
• Sports Tanking, Draft Lottery Tradeoff, and Sports Draft Incentive Design - concepts illustrated by the source’s 1984 example.
• Sports Competitive Balance - league goal that tanking reforms are trying to preserve without rewarding deliberate losing.