In a landmark deal back in 2010, Joe Lacob acquired the Golden State Warriors for a sum of $450 million. Fast forward to today, and the transformation under his leadership is nothing short of remarkable. Lacob's tenure has seen the Warriors rise to the pinnacle of the NBA, capturing four championships and significantly bolstering the franchise's value. While reflecting on his journey thus far, Lacob made it clear: "No chance, sorry. That ship sailed a long time ago — a long, long time ago. I'm a Warrior, this is my identity, it's our identity. I love what we've done. I love our fans, our arena (and) the last decade, and I just wanna do more. I just wanna create an even longer and even greater legacy for this organization."
The Enormous Growth Under Lacob
Indeed, the Golden State Warriors have seen meteoric growth under Lacob’s savvy stewardship. Not only have they dominated on the court, but off it, the franchise has made monumental strides. One of the keystones of Lacob's vision materialized with the construction of the state-of-the-art Chase Center, a symbol of the Warriors’ aspiration and success.
A Shift over in Boston
Contrasting Lacob's continued commitment to the Warriors, another major NBA franchise is poised for significant change. The Boston Basketball Partners L.L.C., which acquired the Boston Celtics in 2002 for $360 million, have announced their intention to sell all shares of the team. The decision stems from estate and family planning considerations. In their statement, Boston Basketball Partners L.L.C. elaborated, "The controlling family of the ownership group, after considerable thought and internal discussion, has decided to sell the team for estate and family planning considerations."
The sale is expected to unfold in two phases, with a majority interest being sold by 2024 or early 2025 and the remaining shares projected to be offloaded by 2028. Despite the transition, continuity is assured as Wyc Grousbeck will maintain his role as the Governor of the Boston Celtics until the final closing in 2028. The managing board conveyed their expectations, noting, "The managing board of the ownership group expects to sell a majority interest in 2024 or early 2025, with the balance closing in 2028, and expects Wyc Grousbeck to remain as Governor of the team until the second closing in 2028."
Financial Fortunes and Future Commitment
The Boston Celtics, whose valuation has surged to $4.8 billion according to Forbes' October 2023 report, also navigate choppy financial waters. Alongside maintaining their competitive edge on the court, the team has committed large financial resources to its superstar players. Jayson Tatum inked a five-year, $314 million extension, while Jaylen Brown committed to a five-year, $303 million deal the previous summer. Additionally, Derrick White secured a four-year, $125 million extension.
With star players like Jrue Holiday and Kristaps Porzingis commanding annual salaries exceeding $30 million, it's no surprise that the Celtics' payroll is anticipated to exceed $200 million by the 2025-26 season. These figures significantly increase the team's financial burden, pushing their expected luxury tax bill to an eye-watering $250 million by the same season. Altogether, the Celtics' financial commitment is projected to surpass the $450 million mark, underlining the immense pressure on the team to sustain their on-court success and justify these mammoth investments.
The Road Ahead
While the Boston Basketball Partners L.L.C. prepare for an intricate sale process, the enduring legacy of both the Golden State Warriors under Lacob and the evolving narrative of the Boston Celtics mark distinct chapters in NBA history. As Lacob remains resolute in his mission to further elevate the Warriors, the Celtics face a transformative phase that promises to reshape the future of one of the league’s most storied franchises. The balance of power and financial strategy within the NBA continues to evolve, showcasing the ever-changing dynamics of professional sports ownership and management.