Boston Celtics Ownership Dispute Sparks Major Stake Sale Amid Financial Strain

The Boston Celtics, one of the NBA’s most iconic franchises, are undergoing a significant ownership transition after a financial dispute within the Grousbeck family, who own the majority stake in the team. Valued at approximately $4 billion, the team is now in the early stages of selling a 51% interest, though some reports suggest a $6 billion valuation is being targeted for the sale.

At the core of the family dispute is a financial disagreement over the team’s spending. Irving Grousbeck, holding a 20% stake, has raised concerns over the rising payroll, which is projected to reach $500 million by 2025-26 due to Jaylen Brown’s $304 million extension and Jayson Tatum’s upcoming supermax deal. His son, Wyc Grousbeck, who holds 3% control, has favoured continuing to spend in order to keep the team competitive. Ultimately, the mounting financial burden has led the family to pursue a sale of their majority stake.

The sale is complicated by the fact that the Celtics do not own TD Garden, which is owned by the same group that controls the NHL’s Boston Bruins, potentially lowering the overall sale valuation. In recent seasons, the Celtics have repeatedly paid into the NBA’s luxury tax system, with penalties exceeding $45 million for the 2023-2024 season and projected to rise to $80 million this season alone.

Despite their on-court success, including winning their 18th title last season, the team ‘barely broke even,’ according to sources. The sale process is advancing cautiously, with JPMorgan Chase and BDT & MSD assessing the team’s financials. These banks are expected to provide potential buyers with a detailed overview of the Celtics’ assets and liabilities before the bidding process begins.

This sale could mark one of the largest transactions in NBA history, not only reshaping the Celtics’ ownership structure but also setting the tone for future high-profile team sales across the league as franchise valuations continue to rise globally. If the Celtics achieve the $6 billion valuation, it would surpass the record set by the Phoenix Suns’ $4 billion sale in 2023.

Stay ahead of the latest sports business trends by subscribing to our free Ministry of Sport newsletter. Unlock even more insights with our exclusive membership plans today!