In 2010, Joe Lacob shook the NBA world by acquiring the Golden State Warriors for a then-staggering $450 million. Fast forward to today, under his stewardship, the Warriors have evolved into an NBA powerhouse, capturing not one, but four championships. The franchise’s value has soared, giving Lacob ample reason to feel content with his contributions and future ambitions. "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 shared, putting to rest any speculation about leaving the team.
One of Lacob's crowning achievements has been the construction of the Chase Center, a state-of-the-art arena that firmly establishes the Warriors as a marquee franchise in the NBA. This ascent stands in stark contrast to the situation in Boston, where the Boston Basketball Partners L.L.C. have decided to sell their long-held ownership of the Boston Celtics. Purchased for $360 million in 2002, the Celtics' value has exploded, with Forbes' October 2023 valuation placing the team at an eye-watering $4.8 billion.
The Sale of the Boston Celtics
The decision to sell the Celtics stems from estate and family planning considerations, according to the ownership group. "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 meticulous and stretched over several years, with a majority interest expected to change hands by 2024 or early 2025. The residual shares will be sold by 2028. Throughout this transition, Wyc Grousbeck is anticipated to remain as the Governor of the Boston Celtics until the final closing in 2028. "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," the ownership group explained.
Financial Commitments and Future Projections
As the ownership transition looms, the Celtics' finances are already in the spotlight. The team's commitment to retaining top-tier talent is unmistakable. Jayson Tatum has secured a monumental five-year, $314 million extension, while Jaylen Brown signed a nearly equally impressive five-year, $303 million contract the previous summer. Derrick White has also been locked in with a four-year, $125 million extension. Notably, stars such as Jrue Holiday and Kristaps Porzingis command salaries exceeding $30 million annually each.
These significant contracts are set to drive the Celtics' payroll to surpass $200 million by the 2025-26 season, a staggering figure that speaks to their ambitions on the court. However, with great expenditure comes a hefty price. The projected luxury tax bill is expected to reach $250 million, making the total financial commitment for the season over $450 million. Such figures highlight the financial might and commitment of the franchise's ownership, aiming to compete at the highest level consistently.
Legacy and Future Trajectories
The landscape of NBA ownership is rapidly evolving, epitomized by the contrasting trajectories of Lacob and the Boston Basketball Partners L.L.C. While Lacob remains deeply embedded in continuing to forge the Warriors’ legacy, the Boston Celtics are on the cusp of writing a new chapter with new proprietors at the helm. The NBA's economic landscape is expansive and lucrative, proven by the tremendous growth in franchise valuations over the past decades.
As both teams look to their futures, they underscore different facets of contemporary NBA ownership: one, the relentless pursuit of continued greatness; the other, a conscientious shift for the next generation. In either case, the commitment to success on and off the court remains a constant.