In October 2023, the Boston Basketball Partners L.L.C. made a significant announcement that could reshape the landscape of NBA ownership. The ownership group stated their intention to divest all shares of the Boston Celtics, a decision driven by estate and family planning considerations. This move sets up a substantial transition for the storied franchise, expected to unfold over the next several years.
The Boston Basketball Partners L.L.C. acquired the Celtics in 2002 for $360 million. Since then, the team has thrived under their stewardship, cementing itself as one of the premiere franchises in the NBA. Currently, Forbes pegs the Boston Celtics' worth at a staggering $4.8 billion. The sale process is projected to be split into phases, with a majority interest expected to be sold by 2024 or early 2025 and the remaining shares set to be sold by 2028. Despite the sale, Wyc Grousbeck is anticipated to remain as the Governor of the team until the final transaction is completed.
"Boston Basketball Partners L.L.C., the ownership group of the Boston Celtics, announced today its intention to sell all the shares of the team. The controlling family of the ownership group, after considerable thought and internal discussion, has decided to sell the team for estate and family planning considerations," the group mentioned in a statement.
A Financial Powerhouse
The Celtics' long-term financial commitments reflect the organization’s ambitions and their determination to remain competitive. This summer, Jayson Tatum agreed to a five-year, $314 million extension, following Jaylen Brown’s five-year, $303 million deal signed the previous summer. Additionally, Derrick White secured a four-year, $125 million extension, further solidifying the team's core.
Acquisitions like Jrue Holiday and Kristaps Porzingis, both commanding salaries exceeding $30 million annually, have ramped up the payroll substantially. Projections anticipate the Celtics' payroll to exceed $200 million by the 2025-26 season. This hefty financial commitment will also likely result in a luxury tax bill skyrocketing to $250 million, pushing the total financial obligation for the Celtics beyond $450 million by that season.
Joe Lacob's Steadfast Commitment to the Warriors
On the opposite coast, Joe Lacob, who purchased the Golden State Warriors in 2010 for $450 million, remains firmly committed to the franchise he resurrected from mediocrity. Under his ownership, the Warriors have not only seen their value surge but have also captured four NBA championships. Lacob has been instrumental in making the Warriors one of the most valuable and influential teams in the league.
The construction of the state-of-the-art Chase Center stands as a testament to his vision and determination to elevate the Warriors' brand. Despite the swirling rumors of acquisition opportunities, Lacob remains wholly dedicated to the Warriors.
"No chance, sorry. That ship sailed a long time ago — a long, long time ago. I'm a Warrior, this is my identity, it's our identity. I love what we've done. I love our fans, our arena (and) the last decade, and I just wanna do more. I just wanna create an even longer and even greater legacy for this organization," Lacob asserted.
The Road Ahead
The Celtics, spearheaded by financial and on-court commitments, find themselves on the cusp of a transformative era. With a high payroll and an expected luxury tax bill, the new ownership will face the challenge of balancing financial prudence with the continued pursuit of excellence.
Meanwhile, the Warriors and their dedicated owner, Joe Lacob, have their sights set on expanding their already impressive legacy. Lacob's unwavering commitment hints at continued innovations and achievements, ensuring the team's competitiveness and prominence in the NBA landscape.
Both franchises embody the spirit of reinvention and progression in the modern NBA. As the Celtics navigate their impending ownership transition and the Warriors, under Lacob’s steadfast leadership, strive for further grandeur, the league, its fans, and its stakeholders eagerly await the unfolding chapters in their storied histories.