Last month, the 2024 NBA Champions celebrated their historic 18th championship, marking the highest number of titles held by any NBA franchise. This achievement further solidifies their dominance in the league. The team has successfully secured long-term commitments from its core players: Jayson Tatum, Jaylen Brown, Kristaps Porzingis, Jrue Holiday, and Derrick White. Notably, their key stars, Tatum and Brown, are entering the prime phases of their careers, suggesting that the team, which boasted an impressive 80-21 record last season combining regular season and playoff games, is well-positioned to maintain its dominance in the NBA for years to come.
However, amidst the celebratory news of a new long-term contract with Tatum, setting the record for the largest in NBA history, the Celtics’ ownership group, Boston Basketball Partners LLC, made a surprising announcement on Monday, July 1. They revealed plans to sell the team, attributing the decision to estate and family planning reasons. Despite the impending sale, Wyc Grousbeck, the team governor and majority owner, is expected to continue in his role until 2028, although the majority of the team’s stake is anticipated to change hands within the next year.
Speculation is already rife regarding potential buyers for the Celtics. One prominent name is John Henry, owner of the Fenway Sports Group, which also owns the MLB’s Boston Red Sox and the Premier League’s Liverpool FC. Henry, who has shown interest in acquiring an NBA team and has been linked to the new expansion team in Las Vegas alongside LeBron James, might find the Celtics an attractive option for an earlier entry into the NBA, further strengthening his ties to Boston.
The sale of the Celtics is expected to be a record-breaking transaction. Currently, the most expensive NBA team sale was the Phoenix Suns, purchased by Matt Ishbia in early 2023 for $4 billion. Forbes values the Celtics at $4.7 billion, while Sportico estimates their worth at $5.1 billion, representing a staggering 1300% increase in value under the current ownership. Such significant growth highlights the lucrative nature of sports franchises. For context, Mark Cuban sold the Dallas Mavericks in late 2023 for a valuation of $3.5 billion, having bought the team in 2000 for $285 million.
Despite the promising outlook, the new owner of the Celtics will face substantial challenges. Investing in an NBA team, particularly one with the storied history and current success of the Celtics, seems advantageous. The team can look to the Golden State Warriors, who won four championships between 2015 and 2022 and are now valued at $7.7 billion by Forbes. Replicating such success could further elevate the Celtics’ brand and valuation.
One significant opportunity for the new ownership could be the development of a new arena. The Warriors’ investment in the Chase Center has paid off, and the Celtics might explore similar ventures, especially considering the TD Garden is owned by Delaware North, the parent company of the NHL’s Boston Bruins.
However, the new owners will also inherit potential financial constraints. The NBA’s latest Collective Bargaining Agreement imposes severe penalties on teams that exceed specific payroll thresholds, known as the first and second aprons. These thresholds are designed to curtail the financial flexibility of teams with high payrolls. Surpassing the first apron, for instance, severely restricts a team’s ability to engage in sign-and-trade deals and complicates salary-matching in trades.
In summary, while the Celtics present a highly valuable and successful investment opportunity, the new ownership will need to navigate financial restrictions and make strategic decisions to maintain and build on the team’s success. The future holds significant potential for growth, but it will require careful management and investment to realize that potential fully.
