The Boston Celtics were put up for sale shortly after securing the 18th championship in franchise history. The Grousbeck family, who own a controlling stake in the franchise, cited “estate planning purposes” upon announcing their decision.
In a bombshell article from Josh Kosman of the New York Post, it’s been alleged that the primary catalyst for the Celtics being put on the market is their rapidly growing payroll and the tax penalties that come with that.
This summer, Brad Stevens signed multiple members of the rotation to long-term contract extensions, including a supermax deal for All-NBA forward Jayson Tatum.
“Irving Grousbeck, a 90-year-old Massachusetts-born entrepreneur who owns a controlling roughly 20% stake in the team, balked at funding big losses on the horizon from the massive contracts that helped the Celtics capture a record 18th NBA championship in June, multiple sources told The Post,” Kosman reported. “…The 11 players under contract — including stars Jayson Tatum, who got the NBA’s richest ever contract this summer, and Jrue Holiday, who also got a new deal, are due $225 million — putting the team on the hook for a $280 million luxury-tax penalty, according to ESPN.”
The Celtics are positioned to be a dominant force in the NBA for the next four to eight years. They have a strong blend of veteran talent, stars in their prime and younger prospects who can grow into reliable contributors. Yet, that type of consistency comes at a cost in the NBA, and it can quickly change a franchise’s financial outlook — as it has for the Celtics, who are now projected to be losing money for the foreseeable future.
As such, whoever purchases the Celtics will have some tough decisions to make. Breaking up a roster on the verge of becoming a dynasty is a quick way to alienate the fan base and get your tenure off to the worst possible start. Yet, purchasing an asset to lose a great deal of money for the foreseeable future is bad business. Finding the right balance will be integral.
While the Celtics being put on the market was surprising at the time, their payroll being a primary cause makes sense. How the sale plays out over the coming months will be incredibly interesting and will undoubtedly have Celtics fans walking on eggshells as they hope to keep the current core together for as long as possible.
