By Riccardo Biscotto, Jacopo D’Angelo, and Davide Franchini
Introduction
The acquisition of the Boston Celtics by a private equity consortium is a landmark deal in professional sports. Valued at $6.1 billion, with a potential increase to $7.3 billion, it ranks among the highest NBA franchise transactions. Chisholm, co-founder of Symphony Technology Group, joins forces with Sixth Street and other investors to acquire a majority stake. The move underscores the growing influence of institutional capital in sports, aiming to capitalise on media rights, branding, and digital engagement. As the reigning NBA champions, the Celtics’ new ownership seeks to blend financial expertise with strategic expansion to drive long-term growth.
Overview on Acquirer
William Chisholm, the lead investor in the consortium acquiring a majority stake in the Boston Celtics, is a seasoned player in the Private Equity space. Chisholm is the co-founder and managing partner of STG, a private equity firm specializing in software, data analytics, and technology-enabled services.
A self-proclaimed “diehard” Celtics fan, Chisholm’s acquisition of the team reflects both his business acumen and personal affinity for the franchise. Chisholm has overseen numerous investments at STG, including AFS Technologies, Aldata, Capco, CoreOne, First Advantage, IMI, Intentia, IRi, MSC Software, RSA, and Trellix. Before founding STG, he co-founded The Valent Group and worked at Bain & Company and PaineWebber, Inc. His background in strategic investments and business transformation has positioned him as a formidable figure in the financial sector, with a strong track record of growing and optimizing portfolio companies.
Joining Chisholm in the acquisition is Sixth Street, a prominent private equity firm known for its investments in sports franchises, including the San Antonio Spurs and FC Barcelona’s broadcast rights. Sixth Street, led by former Goldman Sachs partner Alan Waxman, has expanded its footprint in the sports industry through strategic partnerships and acquisitions, further solidifying its influence in the global sports business landscape and making it an ideal partner in the Celtics venture.
The deal also includes contributions from Bruce Beal, president of real estate developer Related Companies, and Rob Hale, an existing Celtics investor. This includes existing investors, ensuring continuity in ownership while introducing new financial backing and strategic input to support the franchise’s long-term stability, likely allowing for a smoother transition.
Chisholm’s investment reflects the growing role of private equity in professional sports. With the backing of Sixth Street and other consortium members, the deal could shape the Celtics’ future while contributing to broader trends in sports ownership and investment.
Overview on Boston Celtics Franchise
Founded and based in 1946 in Boston, Massachussets, the Boston Celtics joined the National Basketball Association (NBA) in 1949 and currently compete as members of Eastern Conference’s Atlantic Division. They play their home games at the TD Garden, one of the most iconic arenas in the US, which is shared with the NHL team Boston Bruins. Celtics are the title-defending team, as they won the latest NBA Finals in June 2024; Celtics’ Jersey has been worn by some of the greatest ever to play the game, who contributed to making the Boston Basketball team to hold the record for most championships won, with 18 titles.
The Celtics team was the first professional sports team in the United States of America to go public: in 1986 the team ownership decided to sell 40% of their stake as limited partnership shares, on the New York Stock Exchange. In 2002 the consortium Boston Basketball Partners L.L.C. acquired the team for $360 million, leading the franchise to a 20-year time of sports success and securing to NBA championships, in 2008 and in 2024. They kept their shares until this latest acquisition.
Each year the American business magazine Forbes gives a valuation of the most important sport teams. In October 2024, the Celtics obtained a valuation by Forbes of 6$ billion, marking a solid increase of 28% from the previous year’s valuation of $4.7 billion. Forbes’ valuation positions the team as the fourth most valuable NBA franchise, and as the 19th most valuable sports team in the world. A fundamental aspect that led to this valuation is the strong financial performance of the 2023/2024 season: the team concluded the financial year with an operating income of $121 million and revenues of $457 million, both increased from the previous year.
Deal rationale and analysis
Financial Analysis of the Boston Celtics Acquisition
The acquisition of the Boston Celtics by a consortium led by William Chisholm, co-founder of the private equity firm Symphony Technology Group, marks a record-breaker transaction in global professional sports. The initial valuation of the deal is $6.1 billion, with a potential increase to $7.3 billion by 2028, related on the acquisition of the remaining 49% stake in the franchise.
Deal Structure
The consortium has acquired a 51% controlling interest in the franchise from Boston Basketball Partners, who had originally purchased the Celtics in 2002 for $360 million. The current owners, led by Wyc Grousbeck, will temporarily retain a 49% stake, with a planned exit by 2028. Grousbeck will continue to serve as CEO and Governor of the team through the 2027–28 NBA season.
The consortium includes:
• Bill Chisholm, lead investor
• Sixth Street Partners, which committed approximately $1 billion to the transaction (WSJ)
• Rob Hale, a minority shareholder in the Celtics
• Bruce Beal Jr., president of Related Companies
According to NBA regulations, the controlling owner must hold at least a 15% equity stake, suggesting that Chisholm has committed a substantial amount of personal capital.
Although the exact equity/debt breakdown has not been disclosed, based on Sixth Street’s participation and NBA ownership rules, the structure is likely to consist of approximately 30–35% equity with the remainder in debt or hybrid instruments, in line with leverage profiles typical in private equity deals for sports franchises.
Valuation and Market Multiples
The deal evaluates the Celtics at $6.1 billion, with a potential increase to $7.3 billion via an earn-out mechanism related to future performance and full acquisition of the franchise.
According to Forbes, in 2023 the Boston Celtics reported:
• Revenue: $493 million
• EBITDA: $137 million
This implies the following valuation multiples:
• EV/Revenue = $6.1B / $493M = ~12.4x
• EV/EBITDA = $6.1B / $137M = ~44.5x
These are among the highest multiples ever recorded in professional sports M&A. By comparison:
• The Phoenix Suns (2023) were acquired at ~11x revenue
• The Milwaukee Bucks (2023) deal was valued at ~10x revenue
• Franchise sales have averaged around 8–11x revenue and 25–35x EBITDA
The Celtics deal puts the team at the top of the valuation leaderboard in the NBA, reflecting its global brand potential, on-court performance, and monetization opportunities across media rights, global licensing, and digital expansion.
Financial Impact: Operating Costs and Tax Burden
The Celtics face a complex financial landscape regarding player salaries:
• Jayson Tatum is expected to sign a $314 million extension
• Jaylen Brown signed a $285 million extension in 2023
The projected 2025–26 payroll is approximately $233 million, triggering a luxury tax penalty estimated at $280 million. This brings the total team cost (salaries + tax) to over $513 million, the highest in NBA history (TalkSport).
Investor Outlook
The investor group is betting on:
• Growth in media rights revenues (local and national broadcast, streaming)
• Global brand monetization
• Tech-driven fan engagement and digital innovation
• Long-term franchise appreciation (NBA franchise values have grown at double-digit CAGR since 2010)
However, given the aggressive entry multiples, the consortium will need to extract operational efficiencies and sustain high EBITDA margins, despite rising player costs and increasingly restrictive NBA tax rules.
Expected Synergies
The deal is expected to generate both operational and strategic synergies:
• Digital Transformation: With Chisholm and Sixth Street bringing a strong background in enterprise tech and data analytics, there are plans to optimize digital engagement, customer related platforms, and real-time fan data usage to pump monetization.
• Sponsorship and Commercial Revenue Expansion: The new ownership has the goal to renegotiate global sponsorship deals and leverage the Boston Celtics’ brand in international markets, especially in Asia, where the NBA’s footprint continues to grow.
Conclusion
The Celtics’ acquisition highlights the shift towards private equity in sports ownership. With William Chisholm and Sixth Street leading, the franchise looks to leverage global branding, media revenues, and digital innovation. However, managing high costs, including a luxury tax burden, remains a challenge. If successful, the deal could redefine sports investments, balancing financial strategy with on-court success. The consortium must ensure sustainable growth while maintaining the team’s competitive edge, proving that record valuations can translate into long-term value.
Bibliography
PE hub [link]
Private Equity wire [link]
Axios [link]
AP News [link]
TNT [link]
Forbes [link]
ESPN [link]
Statista [link]
Financial Times [link]
STG Labs [link]
Sixth Street [link]
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