That appears to be the plan behind recent NBA club sales, the most recent of which being the famous Boston Celtics. The club’s ownership group, Boston Basketball Partners L.L.C., declared today its “intention to sell all of the shares of the team.”
The statement comes only weeks after the Celtics won their record 18th NBA championship. It also comes only hours after the team signed the primary players who won the championship, including Jayson Taytum, who received the richest contract in league history today (a five-year, $315 million agreement), and Derek White (a four-year, $125.9 million extension).
The league has never been more talented, with foreign players expanding the talent pool and a potential must-see prodigy now attached to one of the league’s flagship franchises: 20-year-old (and 7’6″) Frenchman Victor Wembanyama has signed with the San Antonio Spurs.
Also fortuitous: the NBA is on the verge of signing what is expected to be its largest media rights deal ever, for approximately $76 billion. Many consider that contract to be the league’s pinnacle in terms of such deals, with subsequent deal totals dropping. It is also expected to be accompanied by costly expansion fees in the coming years as the league seeks to increase its number of teams. Existing franchise owners split these fees. The last NBA media rights deal was for nine years. The future deal is expected to be similar in terms of timing.
For example, consider the team that the Celtics defeated to win the title last month. Dallas Mavericks owner Mark Cuban, no stranger to the “buy low, sell high” strategy, gained approval in December to sell the team for approximately $3.5 billion. That’s more than $3 billion more than his acquisition price, and Cuban is expected to retain 27% of the franchise and maybe control of basketball operations.
According to Yahoo Sports, Cuban is concerned that the next broadcast deal (presumably after 2030) will be lost once the sports broadcast rights bubble bursts.
The record NBA team valuation is $4 billion, which Matt Ishbia agreed to for the Phoenix Suns in 2022. While Phoenix is a hot market with a decent roster, it doesn’t compare to the reigning champions, who have better players from top to bottom, a devoted fan base, and possibly the best lore of any team in the league.
According to Sports Business Journal, sources believe the team might sell for more than $5 billion, after Forbes evaluated the franchise at $4.7 billion in 2023.
Boston Basketball Partners LLC stated that the sale is being made for “estate and family planning purposes.” The controlling board anticipates selling the majority of the shares in 2024 or early 2025, with the remaining shares closing in 2028.”