Boston Celtics Sale Document Reveals Insights on NBA Business Model
A recent document sheds light on the Boston Celtics’ potential sale and the factors influencing NBA team valuations
Boston, Celtics, NBA, Wyc Grousbeck, Jayson Tatum, Jaylen Brown, Sports Business
Boston: The Celtics just snagged their 18th NBA title, surpassing the Lakers. Now, they’re eyeing a record-breaking sale, possibly the priciest in sports history.
A document for potential buyers lays out what could affect the final sale price. Wyc Grousbeck, the lead owner, has brought in banks to help with the sale, planning to stay on until 2028.
The highest price for an NBA team was $4 billion for the Phoenix Suns, while the Washington Commanders went for $6.05 billion last year. The Celtics are a hot brand, but they don’t own their arena, TD Garden, which limits some revenue opportunities.
Unlike most top franchises, the Celtics are tenants at the arena, owned by Delaware North. This setup keeps costs down but means they miss out on concert revenues and other events.
The Lakers are the only other top team that doesn’t run its venue. The Celtics’ unique situation has led to wild estimates for their sale price, ranging from $4.5 billion to $6.5 billion.
According to a recent valuation, the Celtics are worth about $5.66 billion, including their stake in NBC Sports Boston. The sales prospectus shows they made $493 million in revenue for the 2023-24 season, with ticket sales being the biggest chunk.
They raked in $102 million during their title run, and after sharing playoff revenue, their net revenue was around $465 million. They also have a hefty cash reserve but carry some debt.
With stars like Jayson Tatum and Jaylen Brown locked in through at least 2028, the Celtics are set for more success. However, their big payroll raises questions about future losses if they don’t keep making it to the Finals.
As the Celtics eye a sale, the market for sports teams is tricky. The last major teams sold were years ago, making this a rare opportunity for buyers.