More Details On Celtics’ Impending Sale
In a press release via Business Wire, Boston Basketball Partners LLC officially confirmed that it has reached an agreement to sell its majority stake in the Celtics at a record valuation of $6.1 billion to a group led by William (Bill) Chisholm.
Other members of the new group include current minority owner Robert Hale, Bruce A. Beal Jr., and Sixth Street, a private equity firm.
Sixth Street, which also purchased a stake in the Spurs in 2021, will invest more than $1 billion in the Celtics, a source tells Mike Vorkunov, Jay King and Jared Weiss of The Athletic.
The impending sale still needs to be approved by the NBA’s Board of Governors. According to The Athletic’s trio, the transaction is expected to take a few months to be finalized.
“Bill is a terrific person and a true Celtics fan, born and raised here in the Boston area,” Wyc Grousbeck said. “His love for the team and the city of Boston, along with his chemistry with the rest of the Celtics leadership, make him a natural choice to be the next Governor and controlling owner of the team. I know he appreciates the importance of the Celtics and burns with a passion to win on the court while being totally committed to the community. Quite simply, he wants to be a great owner. He has asked me to run the team as CEO and Governor for the first three years, and stay on as his partner, and I am glad to do so.”
“Growing up on the North Shore and attending college in New England, I have been a die-hard Celtics fan my entire life,” Chisholm said in his own statement. “I understand how important the Celtics are to the city of Boston – the role the team plays in the community is different than any other city in the country. I also understand that there is a responsibility as a leader of the organization to the people of Boston, and I am up for this challenge.
“My partners and I have immense respect for Wyc, the entire Grousbeck family and their indelible contributions to the Celtics organization over the last 23 years. We look forward to learning from Wyc and partnering with Brad Stevens, Joe Mazzulla and the talented team and staff to build upon their success as we work to bring more championships home to Boston.”
Stevens, Boston’s president of basketball operations, met with four prospective ownership groups in the month preceding the sale, sources tell The Athletic. A group led by another current minority owner, Steve Pagliuca, had been considered the frontrunner to purchase the team, per The Athletic’s report. However, Pagliuca released a statement (via Twitter) confirming his bid was unsuccessful.
“I recruited new partners with deep resources and expertise in technology and international markets to maximize the Celtics’ successes to ensure we can always compete for Championships, luxury taxes be damned,” Pagliuca said in part. “We made a fully guaranteed and financed offer at a record price, befitting the best sports fans in the world, and with all the capital coming from individuals who are fully committed to winning on and off the court.
“We had no debt or private equity money that would potentially hamstring our ability to compete in the future. We have felt it was the best offer for the Celtics. It is a bid of true fans, deeply connected to Boston’s community and we’ve been saddened to find out that we have not been selected in the process.”
Celtics’ Controlling Stake To Be Sold For $6.1 Billion
9:37am: The new ownership group also includes minority owner Robert Hale, Himmelsbach tweets.
9:20am: The Celtics are being sold to William Chisholm for a valuation of $6.1 billion, a new record for a controlling stake in a North American sports franchise, Scott Soshnick of Sportico reports (via Twitter).
Chisholm is the managing director and co-founder of Symphony Technology Group, a California-based private equity firm, Adam Himmelsbach of the Boston Globe reports. Chisholm is a Massachusetts native and lifelong Celtics fan. His involvement in the bidding was first reported last week.
The Celtics’ sale of $6.1 billion surpasses the NFL’s Washington Commanders ($6.05 billion) for the highest sum ever for a North America sports team, ESPN’s Shams Charania tweets.
Celtics co-owner Wyc Grousbeck is expected to remain governor through the ownership transition. He’ll remain in that role, continuing to oversee the team’s operations, through the 2027/28 season, Mike Vorkunov of The Athletic tweets.
The Grousbeck family expected a handful of bids for the franchise during the sales process. The Grousbeck family announced last July 1 that it was putting the team up for sale, just a few weeks after the Celtics won their 18th championship.
The Grousbeck family said then that it intended to sell 51 percent of the team in late 2024 or early 2025. The Grousbeck family is selling the team for estate and family planning considerations.
The sales price is a huge jump from the amount paid by Grousbeck 20-plus years ago. Grousbeck founded and led the group, Boston Basketball Partners L.L.C., which bought the Celtics for $360MM in 2002.
Four Groups Identified As Bidders For Celtics
Four prospective ownership groups remain involved in bidding for the Celtics and have taken part in management presentations with the team, according to a report from Eben Novy-Williams and Scott Soshnick of Sportico.
Here are those four groups, per Sportico’s reporting:
- Steve Pagliuca‘s group: Pagliuca is a current minority stakeholder in the Celtics who has expressed interest throughout the process in assuming majority control of the franchise. Sportico reported on Tuesday that he was a “near certainty” to be involved in the second round of bidding and was considered by some industry sources to be the frontrunner.
- The Friedkin Group: Described by Sportico as “a privately held consortium based in Texas,” The Friedkin Group has holdings that include a pair of soccer clubs, AS Roma in Italy and Everton in the English Premier League. Dan Friedkin, the owner and CEO, is reportedly worth $7.5 billion.
- Stan Middleman‘s group: Middleman, the president and CEO of Freedom Mortgage, bought a minority stake in MLB’s Philadelphia Phillies in 2023 and has explored pursuing majority control of other sports franchises, including the Cleveland Guardians and Washington Nationals, according to Sportico.
- Bill Chisholm‘s group: Chisholm, whose involvement was first reported by Bloomberg, is the co-founder, managing partner, and chief investment officer of Symphony Technology Group, which manages about $10 billion in assets, per Sportico.
The Celtics’ majority ownership group first announced last July that it would be putting control of the franchise up for sale. The plan laid out at that time was to sell a majority share (ie. 51%) of the team in late 2024 or early 2025, with Celtics governor Wyc Grousbeck remaining in his current role until the balance of the sale is completed in 2028.
It’s unclear whether or not that’s still the plan, according to Novy-Williams and Soshnick, who note that the messiness of the Timberwolves’ ownership transfer prompted commissioner Adam Silver to suggest that the league may try to avoid sales that play out in multiple stages going forward.
The deadline for potential buyers to submit their initial offers was January 23. A second round of revised bids is reportedly due this Friday.
It’s not yet known whether the four groups involved in the process are fully funded or exactly how much they’re willing to offer for a controlling stake in the defending NBA champions, Novy-Williams and Soshnick write. During the site’s latest round of NBA franchise valuations, Sportico estimated that the Celtics are worth $5.66 billion.