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In a surprising turn of events, the Grousbeck family has announced their decision to sell a majority interest in the Boston Celtics, just weeks after the team clinched its record 18th NBA championship. The family, which leads the Boston Basketball Partners group, cited estate and family planning considerations as the primary reasons for the sale. Despite this major shift, Wyc Grousbeck will remain the franchise governor until 2028, ensuring some continuity during this period of transition.
The Boston Basketball Partners group, a consortium of investors, acquired the Celtics for $360 million in 2002. Over two decades later, the team’s valuation has skyrocketed to an impressive $4.7 billion, according to Forbes, making it the fourth-most valuable franchise in the NBA. The sale is anticipated to conclude in late 2024 or early 2025, and it is expected to set a new record for NBA franchise transactions, potentially surpassing the $4 billion paid for the Phoenix Suns in 2022.
Stephen Pagliuca, the team’s co-managing partner and owner of a stake in Serie A side Atalanta, has confirmed his interest in participating in the bidding process. Pagliuca expressed his dedication to the team, stating, “Being a co-investor and managing partner of the Celtics has been a great honour and a labour of love. I hope to be part of the Celtics moving forward and will be a proud participant in the bidding process that has been announced today.” Other members of the ownership group might also seek to retain or increase their stakes in the team.
The sale of the Celtics could follow a model similar to the planned sale of the Minnesota Timberwolves to Alex Rodriguez and Marc Lore, where a phased approach was initially proposed. However, this type of transaction has faced challenges, as evidenced by the Timberwolves deal, which is currently in mediation. NBA commissioner Adam Silver has indicated that the league may need to reassess the types of transactions it permits, noting that a stepped transaction is "certainly not ideal."
With the Celtics recently crowned NBA champions, the timing of this decision might seem unexpected. The team is well-positioned for future success and is set to benefit from the upcoming domestic media rights deals, which are projected to bring in $76 billion, offering significant revenue potential for the franchise. This favorable economic environment might have influenced the Grousbecks’ decision to sell now, as the team’s valuation is at an all-time high.
Interest in acquiring the Celtics is expected to be robust. Stephen Pagliuca, a current owner, is a key contender, promising continuity for the franchise. Additionally, other local sports ownership groups, such as the Jacobs family, who own the NHL's Boston Bruins, have expressed interest in expanding their sports portfolio. Fenway Sports Group, the owner of MLB's Boston Red Sox, could also be a potential bidder, though LeBron James, a minority owner of FSG, would need to divest his equity due to NBA regulations.
The Boston Celtics’ rich history and recent success make them an attractive target for potential buyers. As the process unfolds, the NBA and its fans will closely watch to see who will take over this iconic franchise.
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