The group headed by William Chisholm has attained enough money to cover the cost of buying the Celtics, and the sale is expected to be finalized in the next week or so, sources tell Ben Horney of Front Office Sports.
Two sources describe the group’s status as “oversubscribed,” according to Horney, with more than enough capital on hand to complete the deal. Horney states that the buyers will acquire slightly more than 51% of the franchise in the first part of the transaction, but the exact stake for Chisholm hasn’t been clarified.
Front Office Sports reported last week last that Chisholm was still seeking investors, so progress has apparently been made in the past few days.
Horney notes that Chisholm’s group has also resolved an issue involving Sixth Street Partners, a private equity firm. Reports emerged after the sale was announced in March that Sixth Street Partners was contributing more money to the sale than Chisholm, which isn’t permitted. NBA regulations state that private equity firms cannot be the largest stakeholder in a team and that at least 15% of the purchase price must come from the controlling owner.
That issue was raised by current minority owner Steve Pagliuca, who also sought to buy the team. Horney states that Pagliuca wrote a public letter to Celtics fans last month promising that his proposal was “fully guaranteed and financed” and contained “no debt or private equity money that would potentially hamstring our ability to compete in the future.”
Pagliuca added that he and his partners were “ready to check back into the game” if Chisholm’s group couldn’t comply with NBA bylaws.
According to Horney, a plan remains in place to have current owner Wyc Grousbeck continue as CEO and governor through the 2027/28 season. A source tells Horney that there will be two parts to the sale, and current minority owners can also keep their positions in the organization until 2028.
The minority owners can sell their stakes for up to 20% more than the original price of the deal, Horney adds, under a revenue-based formula established by the league. He estimates that it will bring the actual value of the deal to almost $7.3 billion.
Several new minority owners will be identified in the coming weeks, and they could include a few familiar names to Boston sports fans, according to Adam Himmelsbach of The Boston Globe. A source tells Himmelsbach that Chisholm has made it a priority to establish ties with the local business community.
Himmelsbach also points out that no matter when the sale is finalized, it won’t become official until it’s approved by the NBA’s Board of Governors, probably in June or July.
Oh sick a rich guy is finally even richer. Can’t wait to tell my kids about this one day.
Do multi-billon dollar checks still take 3 business days to clear?
You should check out when the Islanders were “sold” in the 90s. Gotta make sure that check clears.
Sounds like there is still some questions surrounding the cash flow into the team, could it mean salary limits and cuts to a lot of this roster for next season. Will the NBA Board of Governors take some more time than usual to go through the finances of this group before saying yes. If not, this could be the undoing of a great franchise.