The Boston Celtics, arguably the most storied franchise in all of professional sports, are on the precipice of a seismic shift. They’re scheduled to be bought by a consortium headed by investor Bill Chisholm. Underwriter Description Value At this valuation, this sale would be a staggering over $6 billion deal, representing a significant change in ownership. On July 1, owner Wyc Grousbeck revealed that his family is selling their controlling interest in the franchise. Since this announcement, there have been understandable questions raised regarding the team’s future direction.
With this new ownership transition, the Celtics are staring down some very important decisions with their current roster and future financial commitments. One of the linchpins, Al Horford, is about to enter the last season of his contract as a pending free agent. The decisions made in the coming months could have lasting impacts on the team’s competitiveness and financial health.
The franchise has pegged 2025 as the make-or-break year, something analysts have predicted for three years running. The Celtics are changing quickly and dramatically in their financial reality. As it stands, they’re under massive longterm contracts with star players Jaylen Brown and Jayson Tatum, both of whom have extended with the Celts through at least the end of the decade. Brown’s 2023 extension and Tatum’s 2024 extension add up to more than $600 million. That demonstrates the extent of the team’s commitment to invest in their top talent.
In addition to Brown and Tatum, the Celtics have secured contracts for Derrick White, Jrue Holiday, Kristaps Porzingis, and Payton Pritchard, ensuring a competitive roster moving forward. Yet this very commitment to salaries blinds the team to the dangerous cliff on which they stand. In two years, when Tatum’s new contract is set to begin, the Celtics would be a “repeater” luxury tax payer. Combined, this will put a significant pinch on their fiscal headroom.
Or consider the Celtics, who have enjoyed historic success on the court in recent years and last year posted an all-time high for revenue. With four rounds of series-clinching home games, they enjoyed one of the most impressive playoff runs in memory. That success translated into record revenue of nearly $450 million, per Sportico. This achievement fits hand-in-hand with an even more encouraging trend happening within the NBA. Notably, earlier this year, Fitch Ratings upgraded the league’s credit rating from “A-minus” to “A.” In order to finance these ventures, the NBA has increased its allowed debt ceiling from $275 million to $425 million per team. This historic shift follows an unparalleled 11-year, $77 billion media rights agreement.
For the Celtics, a bad playoff performance would bring instant pressure. If they do not advance beyond their second-round matchup with the New York Knicks, the viability of their current roster structure may come into question. Such an outcome would require major reforms, including at the NCAA and beyond.
The Celtics’ most recent ownership transaction was over 20 years ago, when they were sold for $360 million. The Chisholm’s group’s current purchase—even if only half goes to Chisholm—comes at a remarkable economic jump. It provides an opportunity for new leadership to determine the future direction of the franchise.
As discussions around ownership and roster decisions unfold, stakeholders within the organization and fan base will closely monitor how these elements intertwine with the Celtics’ aspirations for championships and long-term sustainability. Looking towards 2025 and beyond, we need to be smart with our decisions during this interim period. Every decision we take will shape the future of the franchise for generations.
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