A week ago, a few hours before the celtics-heat game, Al Horford heard the news that the team was closing the deal and leaned forward to talk about his new team.
It’s not often that players are so focused on the trade as the regular season draws to a close. Now the boot is down and the biggest deal in NBA history is China Standard Time — March 20, ESPN reported, bill Chisholm, Managing Partner of Symphony Technology Group, has agreed to buy the Boston Celtics from the Groesbeck family for $6.1 billion.
The price would surpass the $6.05 billion 2023 paid by the Josh harris-led consortium to buy the NFL’s Washington commanders, making it the most expensive acquisition of a sports team in North n sports history.
6.1 billion to buy the Celtics, he is a green army diehard
When Matt Ishbia bought the Suns for $4 billion two years ago, the price was greeted with gasps. Now, the Celtics’ $6.1 billion deal is once again pushing the NBA team’s valuation even higher.
The deal is reportedly still subject to approval by the NBA board, and one of the people said it could take months to complete. Current owner Groesbeck also said in a statement that he will run the team until the 2027-28 season.
So who is the team’s new owner, Bill Chisholm?
According to Chisholme himself, he’s a huge Celtics fan: “My thoughts about buying this team started almost 50 years ago on my seventh birthday when I went to a game at the old Boston Garden. Since then, I’ve been a big fan of the Celtics. I love the green shirts deeply. When the opportunity came up, I couldn’t turn it down.”
Chisholme was hardly 7 years old when he came up with the idea of buying an NBA team, but as someone who grew up on the north shore of Boston, Chisholme clearly has strong feelings for the Celtics.
“Bill is an amazing person,” Celtics president and CEO Vic Grosbeek said in a statement. “He was born and raised in the Boston area and is a true Celtics fan. His love for the team and the city of Boston, as well as his understanding of the rest of Celtics leadership, make him the next president and controlling shareholder of the team.”
Al Horford also spoke recently about the new owner: “I think it’s important to understand the history of this team and what it means to be a member of the Celtics. If that person has that belief, I think they’ll do the right thing for us. I think this is a special team that has a real connection to the city and the community and that’s what’s important.”
In fact, Chisholme wasn’t the only one bidding for the Celtics. Current Celtics minority shareholder Stephen Paliuka and Philadelphia Phillies minority shareholder Stan Midman were once the winners, especially Stephan Palyuca, who has been working with the Groesbeck family since 2002.
In a statement, gianluca Pagliuca writes, “We offer full guarantee and financing at record prices, in line with the demands of the world’s best sports fans, all funded by individuals who are deeply committed to winning on and off the pitch. We feel this is the best offer for Celtic. It was an offer from a real fan, with a deep connection to the Boston community, but it’s a shame we weren’t selected.”
Gianluca Pagliuca could be forgiven for losing out to the highest bidder in North n sports history.
Cash out at a high level
Last season, the Celtics won their 18th NBA championship, the most in the league and second only to New York Yankees and Montreal Canadiens in North n professional sports, why would the Celtics sell this season when they could be defending the title?
In fact, eight teams have completed equity deals since 2019 because of expectations that valuations, which have soared over the past two decades, will grow more slowly in the future.
“We may be at a tipping point,” one investor told The Athletic, “In any sports league, most owners who have been in charge for a while are asset-rich but cash-strapped. They would never have dreamed that the team would deliver such a large financial benefit.”
Larry Miller bought the Utah Jazz for about $25 million in the 1980s, and his family sold the team to Rui’an Smith for $1.66 billion in 2020. Robert Savile’s consortium bought the Phoenix Suns for a record $401 million in 2004, turning that investment into $4 billion 18 years later Mark Cuban bought the Dallas Mavericks in 2000 for $285 million and sold it last year for $3.5 billion.
So the Groesbeck family, which bought the Greens for $360m, is now selling the team for $6.1 BN, in the same classic”High Cash” move.
In fact, the Groesbeck family chose to sell not only because of skyrocketing valuations, but also because of concerns about the team’s operating costs.
When the Groesbeck family opted to sell the Celtics last year, “The Greens are locked in for the next three to five years with a five-year $304 million contract extension for Jerry Brown and a five-year $314 million record-breaking deal for Tatum, a four-year $125.9 million early extension for WYETT and a four-year $135 million early extension for holiday, including a two-year $60 million deal for Porzingis,” ESPN said
According to John Hollinger of The Athletic, The Celtics will probably have to pay $445 million in salary and taxes next season, just to keep The current roster, because Tatum’s super contract goes into effect next year.
The huge investment has also divided the Groesbeck family. Although Vic Grosbeek, the team’s president and chief executive, has been in charge, he owns only 3% of the team, his father, Owen Grossbeck, owns 20% .
Vic Grosbeek was willing to do whatever it took to build a dynastic team, but his father didn’t want to lose money, “This is what happens when a father puts in zero per cent,” says one person familiar with the situation
The crossroads of the Green Army
Over the past few years, the NBA has seen too many teams fall apart at the first sign of a new owner.
When Matt Ishbia bought the team, the first thing he did was push for a Durant trade, the Timberwolves offered to trade the 10-year-old Downs in the offseason to avoid taxes, and Cuban sold the team, made the shock move to trade Don ?e? this season.
So when Chisholme took over, Celtics players began to worry about whether the team would undergo major changes.
Horford frowns at the prospect of a big payday next season, “This is my 18th season in the league, and when you come across a particular team or a particular player window, you try not to do anything special, so I’m sure they’ll realize that.”
Like Horford, other Celtics players want Chisholme to stay the course. “Understand the culture we have built and the culture we have, keep it and try to make it better,” says Tatum. We have some great people in the organisation and on the team, and we work very hard to build something special.”
To avoid the fate of the Suns and the lone Rangers, current president and CEO Vic Grosbeek will remain at the helm until the 2028. According to Celtics team reporter Adam Himmelsbach, Chisholme has spoken at length with Stevens in recent days and is scheduled to meet with coach Mazzulla today.
But no matter how much Chisholme promises to”Bring more titles to this team,” the Celtics are at a new crossroads in the face of a historic luxury tax.
With the Celtics in charge, another side project is likely to follow: the expansion of the NBA.
As the first team to change ownership under the latest media rights, the league had high hopes for the Celtics’ deal.
If The Celtics are sold at a $6 billion valuation, The league believes it could push The price of a potential expansion team up to $7 billion to $8 billion, according to The Athletic.