Following their championship celebration last summer, the Boston Celtics turned their attention to business matters after the festivities concluded.
Specifically, just ten days after the championship parade on July 1, team governor Wyc Grousbeck surprised the NBA world by announcing his family`s plan to sell their controlling stake in the franchise.
Despite the impending sale, the talented Celtics roster was kept together with the goal of repeating as champions and securing their 19th banner. They aimed for a second consecutive title run.
Their season started strong, winning 61 regular-season games and advancing easily through the first playoff round. The strategy was to focus solely on winning the championship over the next six weeks and deal with the business aspects later.
However, the Celtics now find themselves in a critical situation, unexpectedly trailing the New York Knicks 2-0 in their conference semifinal series heading into a crucial Game 3 at Madison Square Garden.
If Boston cannot turn the series around, particularly overcoming a significant shooting slump (missing 75 three-pointers in two games while losing large second-half leads), the long-term future of this current team composition could be jeopardized.
Regardless of this season`s outcome, the future of this championship-winning roster, skillfully assembled by President Brad Stevens, was already uncertain due to the significant costs associated with keeping the team together.
The team`s sale to a group led by Bill Chisholm for over $6 billion represents a record transaction, seen as a positive sign for the NBA`s financial health.
Chisholm, a native of Massachusetts and a lifelong Celtics fan, is reportedly putting together the financing group for this substantial purchase.
Upon completion, it`s evident that the new owners will face significantly higher costs compared to the previous sale over 20 years ago for $360 million.
The Celtics recognized that their core was built around Jayson Tatum and Jaylen Brown and successfully secured them with long-term contracts totaling over $600 million, keeping them with the team through the end of the decade.
The team had anticipated that 2025 would be a critical financial point, a concern that arose as the new collective bargaining agreement was being negotiated over the past three years.
That critical point is now weeks away, irrespective of playoff results, because Tatum`s new contract takes effect, pushing the Celtics into the `repeater` luxury tax bracket.
Among the core players, only veteran Al Horford is a pending free agent in his final contract year. Key players like Derrick White, Jrue Holiday, Kristaps Porzingis, and Payton Pritchard are all signed for future seasons.
Usually, maintaining a talented core through contracts is seen as excellent management, which Stevens and his front office have accomplished.
However, the current NBA landscape introduces financial complexities that skilled roster construction alone cannot fully address.
This leads to the discussion of the massive, widely reported financial figures that have been circulating for the past year.
According to ESPN`s Bobby Marks, even if Al Horford doesn`t re-sign (though sources indicate he wants to return and not retire), the team faces a combined payroll and luxury tax bill estimated at $464 million next season.
Should the Celtics keep their first-round draft pick (needed for its inexpensive contract) and fill out the rest of the roster with minimum salary players, the total team cost could exceed $500 million.
Last season`s championship run, including lucrative home playoff games (like the decisive Finals game at home after losing Game 4 in Dallas), boosted the franchise`s revenue to a record high of about $450 million, as reported by Sportico.
It`s clear, even without a business background like Bill Chisholm`s, that a significant financial challenge is emerging.
This looming financial issue has largely been kept separate from the team this season. Sources say the team intentionally avoided discussing future spending with player agents to maintain focus on playing.
The players` families are reportedly very close-knit, a bond strengthened by consistent deep playoff runs and roster stability since the COVID-19 period.
According to team insiders, Brad Stevens and his staff have successfully shielded the players from concerns about the ownership sale, allowing them to focus on winning another championship.
Earlier in the season, NBA teams received positive news with a significant increase in the league`s debt limit (from $275 million to $425 million per team), partly due to new, massive media rights deals starting next fall.
This provides a financial buffer for teams, including the Celtics, should they need to absorb losses.
The league`s solid financial standing is not in question; Fitch Ratings upgraded its credit rating in February.
However, if the Celtics are eliminated by the Knicks in this round, failing to defend their title like the previous five champions, the consequences are unclear. It`s obvious that spending over $500 million on a team that didn`t reach the conference finals would be questionable.
While the players shouldn`t be focused on this financial situation, the reality is that the league-wide discussion about the potential dismantling of this Celtics team will intensify with each loss, representing a more significant consequence than individual reputations or legacies typically debated during the playoffs.