The pending sale of the Boston Celtics is starting to pick up steam, and could be a monumental shift not just for the Celtics, but for the entire NBA. It would be a pivot point for the storied franchise, currently in the thick of contending for titles, while the league front office has vested interest in the eventual size and scope of the sale as well. The eventual price of the Celtics will likely be a major factor in setting the asking price of one of several expansion teams perhaps soon to join the NBA. So what do we know about where things stand for both the Celtics and the league, given all these moving parts?
Just days after the Celtics secured a coveted 18th championship back in June, news broke that the majority owners of the club, the Grousbeck family, were beginning the process of selling the team. This came as a major surprise, even internally. Team employees told Celtics Wire they were given no advance notice of the sale. Fast forward a few months, and the looming possibility of a change in ownership hasn’t effected Boston’s play on the court, and the team is once again a bonafide contender. And even if the franchise changes hands sooner rather than later, expect the Celtics to have another deep postseason run this spring.
How much fans need to worry long term is unclear. The Celtics are a business, after all, and decisions made in the boardroom do trickle down to the parquet. Hold on to your butts.
Who owns the Celtics and why are they selling the team?
The majority ownership group for the Celtics is the Grousbeck family, who control about 30% of the team. The bulk of this belongs to the patriarch, 90-year old Irv Grousbeck, who according to the New York Post’s Josh Kosman owns about 20% of the team, the largest stake of any individual. The father of the family is reportedly the driving force behind a sale, citing estate planning as the motivation. His son Wyc, who has been the governor of the team and a mainstay on the Celtics sideline, owns about 3% of the team.
Back in 2003, the Grousbecks put together an ownership group called Boston Basketball Partners, and purchased the Celtics for about $360 million, or roughly $625 million when adjusted for inflation. Since that time, the club has won two titles and has only missed the postseason three times. In Boston and beyond, the NBA has grown in popularity massively since then, and the Grousbeck family should be set for a big pay day as a result. When the Phoenix Suns sold in 2022, the team fetched a record price of $4 billion.
The Grousbecks have reportedly begun the first steps toward finding a buyer and eventually handing over the team. Kosman reported the Grousbecks hope for a sale price close to $6 billion, although that number could prove a little steep. The initial plan was to finalize a deal by the end of this year or early 2025.
The NBA, meanwhile, is likely hoping for an even higher number. With expansion on the horizon, the league will no doubt be hoping Boston can set a high standard for the going price of an NBA franchise by selling for the maximum amount. More on that in a moment.
How much money do the Celtics make?
Unfortunately for the Grousbecks, there are some tricky concerns for any would-be buyer. The Celtics were barely profitable despite winning a title last season. Buying the team does not guarantee any immediate returns for any future owner.
A big financial barrier for the club and any future owner is the team’s home arena, TD Garden. The Celtics are actually tenants in the building, which is owned and operated by Delaware North, the parent company for TD Garden and the Boston Bruins. The Celtics see only a fraction of the revenue generated by ticket sales and concessions during home games. The team also doesn’t own the Celtics’ broadcast rights the way other teams do.
Boston has limited pathways for making money in a given year, all while the the Celtics currently field one of the most expensive rosters in the NBA, and one that will be even more expensive next season and beyond. Boston is set to be on the hook for more than $500 million in salary and luxury tax payments in the 2025-26 season. A new ownership group would need to spend huge amounts of money to keep the Celtics’ championship roster in tact.
This sets up a big ask for any new ownership regime. Axios Business Editor Dan Primack told Celtics Wire during the offseason that a new owner would need to purchase the team outright, buying out the Grousbecks and restructuring the agreement with any minority owners who remain.
Next, they would need to float the team’s expensive roster or otherwise deal with the public relations consequences of dismantling a contender. And until the team owns its own arena or broadcast channel, all of this would need to persist while the franchise barely turning an annual profit.
Who might buy the Celtics?
The Grousbeck family reportedly hired JP Morgan and BDT & MSD banks in September to prepare for a sale. This included reaching out to individuals and groups who have expressed interest, as well as other potential suitors.
Because of the above financial concerns, who ever buys the team needs more than an impressive net worth. They would need to be quite liquid, and would need the money on hand to pay for team’s luxury taxes and other fees each and every year. As an example, Kosman told Celtics Wire even a lucrative firm like the Kraft Group, the organization that owns the New England Patriots, would likely need to sell a few assets to actually execute any possible purchase of the Celtics.
This means the list of potential buyers for the team is rather short. Kosman told Celtics Wire fewer and fewer individuals are wealthy enough to own a team like the Celtics, especially in an era of high interest rates. Corporate conglomerates might not be interested in taking such a big upfront loss.
The possibility of NBA expansion also complicates things for the Celtics. Fenway Sports Group has been a popular hypothetical buyer, but is reportedly more interested in an eventual team in Las Vegas. Jeff Bezos has also been floated, although he may prefer to own an NFL franchise or wait for expansion to his native Seattle. (Bezos’ half-brother Jeff has reported interest.)
An individual or firm may see the Celtics less as a sports team, and instead be more interested in how the brand can fit into a larger real estate venture. This was the case with the recent sale of the Dallas Mavericks, according to former owner Mark Cuban. Perhaps there is a group interested in buying the team, relocating it somewhere in the Boston area, and using it as the anchor for a massive stadium complex full of commercial space, hotels, or even a casino.
Viewing the Celtics as more than a way to sell tickets to a basketball game or merchandise opens up new types of owners. It also becomes a feedback loop where the proposition of buying the team is an increasingly complicated and more expensive venture. It would also be a project that would take a decade or more to complete.
Could the Celtics minority owners buy the team?
There have been reports suggesting some of the team’s existing minority owners are interested in buying out the Grousbecks and taking a controlling stake in the franchise. This would still be a big change for the club, of course.
Boston’s current minority owners may have very high personal net worths. But it’s not clear if they are hyper-wealthy enough to purchase the team outright. Robert Hale has been flagged as potentially interested, and someone who could put together a possible cohort to buy te team.
So far, however the name to watch is reportedly Steve Pagliuca, co-chairman of the private equity firm Bain Capital and one of the franchise’s most involved minority owners. Pagliuca owns about 20% of the team, and has been looking at bringing in new investment to put together a package big enough to buy the Celtics and become the governor of the club.
Because interest in buying the team has been tepid, Pagliuca might have an opportunity. With no serious bidders, he can likely drive the asking price down to a number closer to $5 billion. That makes the task of bringing in enough additional sources of investment to bolster a bid that much easier.
Could Wyc Grousebeck may be looking to do the same, however? Recent reporting suggests Grousbeck could be looking overseas for that reason.
Will international money play a role?
According to Bloomberg, when the Celtics visited Abu Dhabi in the United Arab Emirates during the 2024 preseason, Grousbeck met with a Mubadala Investment, one of the country’s sovereign wealth funds. The Middle East is home to some of the wealthiest and fastest growing economics on earth, and could be a potential source if investment.
Already the UAE has deep connections to sports in the West. A different wealth fund from the country owns 13 international soccer teams, including Manchester City in the English Premier League and Major League Soccer’s New York City FC. The UAE also sponsors the NBA Cup by way of Emirates, the national airline, and ads for Abu Dhabi air at every Celtics home game.
Other wealthy nations from the region have become increasingly connected to Western sports. Qatar owns a 5% stake in Monumental Sports, the parent company for the Washington Wizards, and recently hosted the 2020 men’s World Cup. Neighboring Saudi Arabia is also spending billions of dollars on international golf, soccer, and other ventures. Apropos of the motivations and merits of partnering with a foreign country, there is a lot of money out there if the right deal can be struck.
There are limits, however. While Foreign-born individuals face no restrictions, the NBA caps sovereign wealth funds from owning more than 20% of a team. (This number was increased from 10% to 20% in 2022, however.)
Bloomberg reported the UAE is currently hesitant to invest in an NBA team without becoming the majority voice. But perhaps Wyc Grousbeck could swing a similar deal to what he has now with his father, and effectively replace his dad’s position with foreign investment. If Pagliuca is continuing to build an ownership group of his own, international partners could be critical for raising enough cash.
Final thoughts
Buying the Celtics and immediately dismantling the championship core would be an awful way for a new owner or owners to introduce themselves to Boston. So long as the team keeps winning, there will be pressure and reason to continue to spend.
The future is still murky, though. Even if player payroll was severely slashed, the Celtics don’t have many pathways to becoming profitable without addressing the arena issue. Whoever buys the team will need to spend early and often beyond the asking price of the team.
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