As the Boston Celtics change ownership hands for a record $6.1bn, the sale underscores the soaring value of US sports franchises, especially in the NBA.
As reported by the Boston Globe on Thursday, the NBA team is expected to be sold to William Chisholm, Managing Director of Symphony Technology Group, for an unprecedented $6.1bn.
Expected to close in the coming weeks, the deal will see Wyc Grousbeck remain as the Celtics’ CEO and Governor until June 2028. This was part of the original plan when Grousbeck and Steve Pagliuca, who led as majority owners with the Boston Basketball Partners group, revealed their intention to sell the controlling stake in the franchise last year.
Celtics fans can take comfort in knowing that Chisholm, a Massachusetts native and passionate supporter of the team, will take the reins. He currently serves on the boards of several companies, including Cadmium, CAI Software, Dodge, eProductivity Software, and Jobrapido.
The acquisition is supported by Sixth Street, a global investment firm that forms part of a consortium to support Chisholm’s bid.
A record fee
The Celtics’ sale now holds the record for the largest sports franchise transaction in North America, surpassing the Washington Commanders’ $6.05bn acquisition in 2023. The previous NBA record was held by the Phoenix Suns, who were bought for $4bn by Mat Ishbia.
While professional sports leagues in the US strive for competitive balance, the Boston Celtics is the most successful franchise in NBA history. With 18 championships, its latest title came just last year, adding an unexpected twist to the owners’ decision to sell.
Despite the team’s success, the timing of the sale has raised questions. However, it also highlights a broader trend in the sports industry – rising valuations.
In 2023, reports indicated that a group of minority owners in the Golden State Warriors were open to selling their stakes after the team’s valuation hit an estimated $7bn, becoming the second-most valuable US sports franchise behind the Dallas Cowboys.
The increasing value of sports franchises is being driven by media rights deals, growing sponsorships and expanding global fanbases. The NBA, in particular, shows no signs of slowing down. Last year, reports even surfaced about the potential creation of a European league.