In 2010, Joe Lacob made a bold investment by purchasing the Golden State Warriors for a sum of $450 million, a move that has since transformed the franchise both on and off the court. During his tenure, Lacob has overseen the team's remarkable ascent, witnessing the Warriors clinch four NBA championships. This period of success has also come with a substantial increase in the franchise's value, establishing it as one of the most valuable teams in professional sports.
Lacob's impact extends beyond team performance. Under his leadership, the Warriors constructed the Chase Center, a state-of-the-art arena that has become a landmark and a hub for fans and the local community. "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, expressing his unwavering commitment to the Warriors.
In Boston, a different narrative is unfolding for the Celtics. Boston Basketball Partners L.L.C., the ownership group that acquired the Celtics in 2002 for $360 million, has announced plans to sell all shares of the team. The decision comes from estate and family planning considerations. "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 staged over several years. The managing board plans to sell a majority interest by 2024 or early 2025 with the remaining shares to be sold by 2028. Throughout this transition, Wyc Grousbeck is expected to remain the Governor of the team. "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," Boston Basketball Partners L.L.C. confirmed.
As the Celtics prepare for new ownership, the financial landscape of the team is noteworthy. Forbes' October 2023 valuation placed the franchise worth at a staggering $4.8 billion, reflecting the broad financial health of NBA teams and their soaring valuations. High-profile player contracts are a testament to this, with marquee talents like Jayson Tatum and Jaylen Brown inking massive deals. Tatum secured a five-year, $314 million extension this summer, while Brown signed a five-year, $303 million deal last year.
The financial commitments don't stop there. Derrick White agreed to a four-year, $125 million extension, and both Jrue Holiday and Kristaps Porzingis command salaries exceeding $30 million annually each. This accumulation of high-value contracts projects the Celtics' payroll to surpass $200 million by the 2025-26 season, with a corresponding luxury tax bill of $250 million, bringing the total financial commitment for that season to over $450 million.
This staggering financial outlook highlights the evolving economics within the NBA, where franchise valuations and player salaries continue to skyrocket. For the Celtics, a transition in ownership of this magnitude will surely be a focal point in the coming years, promising to shape the future trajectory of one of the league's most storied franchises.
As Joe Lacob remains steadfast in his commitment to the Warriors, the Celtics' impending ownership transition marks a new chapter in Boston's basketball history. Both narratives illustrate the dynamic and ever-changing landscape of NBA team ownership and the significant impact of leadership on and off the court.