Is the Celtics Sale the Beginning of the End of the Two J’s Era?

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On Thursday, it was announced that the Boston Celtics would be sold for $6.1 billion to private equity mogul William Chisholm. If the deal is approved by the NBA Board of Governors, it will be the largest price paid for an American sports team, topping the NFL’s Washington Commanders being sold for $6.05 billion in 2023. The new ownership group will also include current shareholders Rob Hale, and Bruce Beal Jr.

The Celtics organization was last purchased in 2002 by an ownership group led by the Grousbeck family. In the last 23 years, the legendary franchise has won championships in 2008 and 2024, leading all NBA teams with a record 18 championships. It has been noted in the report of the sale that Chisholm has asked Wyc Grousbeck, the current CEO and Governor, to remain with the team in those roles for the next three seasons.

The rapid rise of sports franchise valuations in addition to soaring media rights deals have played a role in not only the sale of the Celtics, but other teams as well. Three recent NBA franchise sales include the Phoenix Suns selling for $4 billion in 2022 and the Charlotte Hornets and Dallas Mavericks selling for $3 billion and $3.5 billion, respectively in 2023. With the rise of valuations, it has become more difficult for individuals and families to purchase a team, with more groups becoming buyers.

Another reason behind more teams selling is the large contracts, something set to impact the near future of the Celtics. In the summer of 2024, Jaylen Brown would sign a five-year deal worth up to $303.7 million, making it the richest contract in NBA history. That will change next season when his teammate, Jayson Tatum’s five-year, $313.9 million contract extension kicks in.

Next season, the NBA salary cap will be around $154 million. The combined $107.2 million owed to Tatum and Brown will account for 69% of the team’s salary cap. Having 11 players under contract next season, the Celtics will owe players $225 million. The 2025-26 Celtics will not only be in the first apron, but deep into the second apron, restricting what the team can do in terms of trades and signings.

Boston will be a handful of teams facing penalties for being over the salary cap. Having a projected tax bill of over $280 million, Boston will pay $513 million combined between salary and tax penalties. In the 2026-27 season, the projected salary cap is expected to be $170 million, with the Celtics set to be over the cap but under the first apron. Nine players are currently expected to be a part of the 2026-27 roster.

For the new ownership, saving money and reducing the tax bill will be a major issue as penalties start to get harsher for teams over the cap. Several teams have already moved on from star players, with the Dallas Mavericks trading Luka Doncic being the most recent example. Doncic would lose over $100 million, no longer being able to sign a supermax extension. Having already paid both Brown and Tatum, the two are signed through the 2028-29 season, with more penalties expected for the Celtics.

Like many teams entering similar situations, the Celtics could be forced to dismantle their championship team and more specifically their championship core of Jayson Tatum and Jaylen Brown, or face the consequences of the new CBA. Only time will tell what the Celtics do as ownership changes. Ownership can either prioritize winning by having one of the best duos in the league or focus on avoiding harsh penalties in the coming seasons.