In 2010, Joe Lacob took a bold step into the world of professional basketball by acquiring the Golden State Warriors for a sum of $450 million. Fast forward to today, Lacob’s leadership has transformed the team into one of the most successful and valuable franchises in the NBA. Under his ownership, the Warriors have clinched four NBA championships, firmly establishing their legacy.
"No chance, sorry. That ship sailed a long time ago — a long, long time ago. I'm a Warrior, this is my identity, it's our identity. I love what we've done. I love our fans, our arena (and) the last decade, and I just wanna do more. I just wanna create an even longer and even greater legacy for this organization," Lacob remarked, reflecting his unwavering commitment to the Warriors.
Building the Future: The Chase Center
Among Lacob's significant contributions is the construction of the Chase Center, a state-of-the-art arena that has become a key landmark for the team. This monumental project underscores Lacob’s vision and dedication to enhancing the Warriors' infrastructure and fan experience. The value of the franchise has soared under his stewardship, marking an era of unprecedented growth and achievement.
The Boston Celtics: A New Chapter
Meanwhile, across the country, another storied franchise is poised for a significant transition. The Boston Basketball Partners L.L.C., the ownership group behind the Boston Celtics, recently announced plans to sell all their shares of the team. The decision stems from estate and family planning considerations, highlighting the importance of long-term strategizing beyond the court.
"Boston Basketball Partners L.L.C., the ownership group of the Boston Celtics, announced today its intention to sell all the shares of the team. The controlling family of the ownership group, after considerable thought and internal discussion, has decided to sell the team for estate and family planning considerations," the group stated.
The sale process is set to be staggered, with the managing board aiming to offload a majority interest by 2024 or early 2025. The remaining shares are expected to be sold by 2028. During this transitional period, Wyc Grousbeck is anticipated to remain the Governor of the Boston Celtics until the final closing.
"The managing board of the ownership group expects to sell a majority interest in 2024 or early 2025, with the balance closing in 2028, and expects Wyc Grousbeck to remain as the Governor of the team until the second closing in 2028," added Boston Basketball Partners L.L.C.
Valuation and Financial Landscape
Having purchased the Boston Celtics in 2002 for $360 million, Boston Basketball Partners L.L.C. has seen the team's value skyrocket. As of October 2023, Forbes valued the Celtics at an impressive $4.8 billion, a testament to the enduring appeal and financial success of the franchise.
On the court, the Celtics have made significant financial commitments to key players in recent years. Jayson Tatum signed a lucrative five-year, $314 million extension, while Jaylen Brown secured a five-year, $303 million deal. Additionally, Derrick White earned a four-year, $125 million extension, and stars like Jrue Holiday and Kristaps Porzingis command salaries exceeding $30 million annually each.
Financial Projections
These substantial contracts have major implications for the Celtics' payroll, which is projected to surpass $200 million by the 2025-26 season. Furthermore, the expected luxury tax bill for that season is pegged at $250 million, bringing the total financial commitment to over $450 million.
These figures reflect the high stakes and intense financial dynamics at play in maintaining a competitive team in the NBA. As the Celtics navigate this new chapter, the legacy of astute financial decisions and strategic planning will undoubtedly play a crucial role in shaping the team's future successes.
The sales of both the Golden State Warriors and the Boston Celtics demonstrate the complexities and significant stakes involved in owning and managing a professional basketball team. From visionary leadership and infrastructural investments to estate planning and financial commitments, the stories of these two franchises offer a compelling glimpse into the intricate world of NBA ownership.