A private equity-backed consortium, led by Bill Chisholm, Co-Founder of STG Partners, has struck a $6.1bn deal to acquire the Boston Celtics, marking the largest PE-led takeover of a sports franchise and setting a new record for NBA team valuations, according to a report by Bloomberg.
The deal surpasses the $4bn purchase of the Phoenix Suns in 2022 and the $6.05bn sale of the Washington Commanders in 2023.
Sixth Street, a major private equity firm, committed over $1bn to the Celtics deal, marking its second major sports investment in a week, following its acquisition of a 10% stake in the San Francisco Giants.
The investor consortium also includes: Bruce A. Beal Jr, President of Related Companies; and Rob Hale, an existing Celtics investor and Founder of Granite Telecommunications.
Current Celtics governor Wyc Grousbeck will retain his position until the end of the 2027-28 season before fully transitioning control to the new ownership group.
Chisholm, a Massachusetts native and a lifelong Celtics fan, sees the acquisition as both a business and a passion project. STG Partners, known for investments in software and tech businesses, is expanding its focus into sports assets as the sector continues to attract institutional capital.
“We believe in the Celtics’ long-term value, both as a championship organisation and as a vital cultural institution in Boston,” Chisholm said.
The Celtics’ former ownership group, led by Grousbeck and Bain Capital’s Stephen Pagliuca, originally purchased the team for $360m in 2002 – benefiting from the exponential rise in franchise valuations.
Pagliuca, who submitted a rival bid, criticised the selection of the Chisholm-led group, stating that his offer had no debt or private equity financing, which he argued could have given the team more financial flexibility in the future.
Despite on-court success, the Celtics face unique financial challenges compared to other major franchises, including: high player payroll costs; and no ownership of TD Garden, the team’s home arena, which is leased from Delaware North.
BDT & MSD Partners, JP Morgan Chase, and Jordan Park Group advised the Celtics and Grousbeck.
Goldman Sachs advised Chisholm’s group.
