The Boston Celtics, reigning champions of the NBA, are set to be acquired by a group led by Bill Chisholm, a notable figure in private equity, for an unprecedented $6.1 billion. This sale marks a significant milestone in sports franchise history, surpassing previous records.

Details of the Acquisition

The new ownership consortium includes Chisholm’s private equity firm, Sixth Street, which will contribute over $1 billion to the acquisition. Other prominent members involved in this purchase are Rob Hale, a businessman from the Boston area and a current part-owner of the team, and Bruce Beal Jr., who serves as the president of Related Companies, a real estate firm.

Chisholm’s Commitment to Boston

Expressing his lifelong passion for the Celtics, Chisholm stated,

“Growing up on the North Shore and attending college in New England, I have been a die-hard Celtics fan my entire life. I understand how important the Celtics are to the city of Boston — the role the team plays in the community is different than any other city in the country. I also understand that there is a responsibility as a leader of the organization to the people of Boston, and I am up for this challenge.”

Continuity in Leadership

The current owners of the Celtics, known as Boston Basketball Partners and led by the Grousbeck family, will see Wyc Grousbeck retain his positions as CEO and governor through the 2027-28 season. The transaction is anticipated to be finalized by this summer pending approval.

Record-Setting Valuation

This sale price of $6.1 billion not only sets a new record for the Celtics but also eclipses the previous high of $6.05 billion for the NFL’s Washington Commanders in 2023. According to sources familiar with the matter, the total valuation for the Celtics could reach as much as $7.3 billion by 2028, depending on the performance of the league.

Rising Value of Sports Franchises

Franchise valuations are witnessing remarkable growth, significantly influenced by lucrative media rights deals. The NBA recently secured an 11-year agreement valued at $76 billion, partnering with major networks like Walt Disney, NBCUniversal, and Amazon, effectively doubling the annual worth of its previous media contract.

Franchise Legacy

The Celtics are synonymous with basketball excellence, boasting a record 18 NBA championships. Currently, they hold the second-best record in the Eastern Conference and are considered strong contenders for another championship title this season.

Conclusion

This acquisition not only signifies a financial milestone but also highlights the increasing trend of large ownership groups in professional sports as individual ownerships become less feasible amidst soaring team valuations.

— Contributions by Michael Ozanian, Leslie Picker, and Scott Wapner from CNBC.

Disclosure: Comcast is the parent company of NBCUniversal and CNBC.