The sale of the Boston Celtics was finalized on Tuesday, with private equity mogul Bill Chisholm taking over control of the NBA’s most-decorated franchise from a group led by Wyc Grousbeck that had owned them for more than two decades.
The team was put on the market last summer, soon after it won its record 18th NBA championship. Chisholm won the bidding in March with an offer that valued the franchise at more than $6.1 billion — a record price paid for an American professional sports team.
The NBA approved the deal unanimously last week, and the money changed hands on Tuesday.
Chisholm takes ownership of at least 51% of the team, with full control coming by 2028 at a price that could bring the total value to $7.3 billion. That’s the highest price ever paid for a team in the four major North American sports, though a piece of the Los Angeles Lakers changed hands this summer at a price that would value the entire franchise at $10 billion.
Grousbeck led a group that bought the Celtics in 2002 for $360 million. Under their ownership, the Celtics won two NBA titles, lost in the finals two other times and made the playoffs in 20 of 23 seasons.
In a press release issued Tuesday, the Celtics said Chisholm will serve as govenror, and Grousbeck and Aditya Mittal will serve as alternate governors. Grousbeck will be a co-owner and CEO, running day-to-day operations with Chisholm and the existing basketball and business managemetn teams.
Chisholm’s investor group is led by co-owners and members of the managing board of the Celtics, which include Grousbeck, Mittal, Bruce Beal, Andrew Bialecki, Dom Ferrante, Rob Hale, Mario Ho, and Ian Loring. Global investment firm Sixth Street is also part of the investment group.
Michael Ozanian, senior sports reporter for CNBC, discusses how professional sports teams are valued.
“This truly is a dream come true for me and my family,” Chisholm said in a statement. “I feel so fortunate to be here as part of this new investor group, who are accomplished, driven people who care deeply about the Celtics and the Boston community. On behalf of our group, I am thrilled to partner with Wyc, Brad Stevens and Rich Gotham to move this outstanding organization forward. We are committed to building on the legacy of the Celtics and raising banners, and I can’t wait for the team to get back out there this fall.”
“The Celtics have been my life’s work for the past 23 years. This incredible ride is now continuing,” added Grousbeck. “I am fired up to be shoulder to shoulder with Bill as we pull every lever to go after another banner. There is nothing better than winning.”
Read the full article here