Boston Basketball Partners L.L.C, the Boston Celtics ownership group, recently announced its intention to sell all the team shares. This announcement comes not long after the Boston Celtics won a record 18th NBA Championship. In 2002, the ownership group bought the team for $360 million. It is now valued closer to $5 billion as one of the NBA’s flagship franchises and could conceivably be sold for even more than this.
Winning the NBA Championship
The Boston Celtics defeated the Dallas Mavericks in the 2024 NBA Finals. This was their first win since 2008 and 18th overall, the most in league history. The team could still be title contenders for years to come.
Core players like Jayson Tatum and Derek White were recently locked in with impressive contracts covering multiple years. Tatum was awarded the largest individual contract in NBA history, a five-year $314 million deal. The popularity of betting on the NBA and stars like Tatum is only increasing as USA online betting on sports becomes legal in many states. He was the player who lifted the Larry O’Brien Championship Trophy in celebration of the 106-88 win against the Dallas Mavericks to take the 2024 NBA Finals.
The Boston Celtics only trail the Los Angeles Lakers, New York Knicks, and Golden State Warriors on the list of most valuable franchises.
A ‘buy low, sell high’ strategy
The strategy of ‘buy low, sell high’ seems to apply in recent sales of NBA teams. In 2022, Mat Ishbia agreed to $4 billion for the Phoenix Suns, a record valuation. The reigning champs have many young mindful and fit players like Tatum and White and a very strong fan base. The sale could just set a record for an NBA franchise.
Dallas Mavericks owner, Marc Cuban, also sold his controlling interest in the team not long ago. He bought the team for $285m in January 2000 and it won the franchise’s only championship in 2011 with star forward Dirk Nowitzki leading the way. In December last year, the NBA approved the sale of his controlling interest. It went to casino mogul Miriam Adelson and her family at a reported $32.3 billion. Cuban still retains control over the basketball operations.
Why is the sale happening now?
A group of Boston billionaires led by the Grousbeck family has owned the Boston Celtics since 2002. It bought the team for $360 million. Wyc Grousbeck is a venture capitalist and has been the governor of the club since 2002. H. Irving Grousbeck, his father, is a managing partner of the Celtics. He is turning 90 soon, and the decision to sell appears to be related to estate and family planning considerations.
It is an interesting time to sell when the NBA is on the cusp of one of the biggest media rights deals ever. The last media rights deal was for nine years, and the new deal could be for the same time period. The media rights are expected to roughly double which could further raise basketball team valuations.
Who might take over?
Fans are concerned about who will buy the team and there’s much speculation about this. When looking at Boston Celtics history, Wyc Grousbeck and the owners have spent much time and effort to develop the team. They will want it to go to someone who will take good care of it. A current member of the Celtics’ ownership group, Steve Pagliuca of Bain Capital, is one confirmed contender.
The managing board expects to sell a majority interest in 2024 or early 2025. Wyc Grousbeck will remain the Governor until the second closing in 2028.
