Record-breaking $6.1 billion sale of Boston Celtics paves path for NBA enlargement
Scoop: NBA's Boston Celtics Sold for a Record-Breaking $6.1 Billion
Y'all, Nick Fury himself, Bill Chisholm, is leading a group that's just picked up the Boston Celtics for a whopping $6.1 billion, according to ESPN's Shams Charania. That's right, the Green squad is now sitting pretty on the top of the NBA's most valuable teams list!
This sale price is practically in line with Forbes' latest valuation of the Celtics back in December, which was a cool $6.0 billion. With the NBA's recent spike in TV deals, record attendance, and sponsorships, it's no surprise that these teams are worth more than a pretty penny! Forbes projected in October that no team would sell for less than $3 billion, so Chisholm and company nailed it right on the head!
Now that the Celtics deal is done and dusted, the NBA can finally focus on expansion. Word on the street is that they're going to kickstart the expansion process in earnest after this big-ticket sale. According to Tim Bontemps of ESPN, "With clarity on Boston's situation and this kind of price point, the league could potentially revisit the expansion timeline."
Adam Silver, NBA's Commissioner, hinted at expansion discussions back in September but didn’t seem too excited, saying there wasn't much discussion about it at the time. But now that the Boston Celtics deal is off the table, who knows what the future holds for the NBA!
NBA: The Golden Age of Sports Business
The NBA's teams have been seeing significant growth in value lately. The average value of the league's 30 franchises jumped by 15% within the past year to $4.4 billion. The Golden State Warriors, New York Knicks, Los Angeles Lakers, Los Angeles Clippers, and Chicago Bulls all have valuations higher than the new Celtics' price tag.
Once the NBA decides on the number of expansion teams to add (expected to be two in this round), cities and ownership groups will start bidding. After the league office finalizes the new teams, an expansion draft will take place. The expansion teams will have a lower budget for their first few seasons, putting them at a disadvantage early on. They'll have a salary cap worth 66.67% of the NBA's salary cap in their first season and 80% in their second season.
The Frontrunners for Expansion Teams
Seattle and Las Vegas are the heavy favorites to secure expansion teams, according to John Hollinger of The Athletic. Silver even mentioned Vegas as a possibility last February.
Randall Williams and Kim Bhasin of Bloomberg reported that the total price tag for a new arena in Las Vegas, including all expenses, has the potential to hit $7 billion. While Seattle's Kraken ownership group is the heavy favorite to land an NBA team if the league expands to Seattle, the Vegas team appears up for grabs.
David Bonderman, the father of Kraken majority owner Samantha Holloway, was a minority owner of the Celtics prior to the sale. The sale would divest the Bonderman family from any additional NBA ownership stakes, allowing them to pursue other opportunities.
As Holloway hinted in a statement released after the sale, the ownership group is "ideally positioned for an NBA team with Climate Pledge Arena and the incredible fans in Seattle."
Other cities, like Mexico City, Montreal, Vancouver, Kansas City, and Louisville, are also possibilities for expansion teams. But let's be real, it's all about the Lakers, the Knicks, and the Warriors, right?
The sale of the Celtics is a major step forward for the NBA. With billions of dollars on the line, the stakes are higher than ever. As fan interest grows and the media rights deals get renegotiated, the NBA is likely to push forward with expansion plans, potentially making room for a whole new generation of superstars and rivalries. Bring on the expansion craze!
Unless otherwise noted, all stats via NBA.com, PBPStats, Cleaning the Glass, Basketball Reference, Spotrac, RealGM, or FanDuel Sportsbook.
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- Wyc Grousbeck, the former owner of the Boston Celtics, may now have the financial means to pursue other opportunities, as his family is no longer tied to any additional NBA ownership stakes following the sale.
- Despite the sale of the Boston Celtics for a record-breaking $6.1 billion, the league's Commissioner, Adam Silver, stated that there were no expansion discussions at the time. However, with the sale completed and the projected price point, the NBA could potentially revisit the expansion timeline.
- Bill Chisholm, who led the group that purchased the Boston Celtics, might find his group in a strong position to bid for a new expansion team, given the success of the sale and the increasing importance of valuations in sports business.
