Following last summer`s triumphant championship celebrations – the parades, swept confetti, smoked cigars, and trophy photos – it was finally time for the Boston Celtics to address the future of the franchise.
On Monday morning, July 1, a mere ten days after the Celtics` title victory, team governor Wyc Grousbeck surprised the basketball world by announcing his family`s intention to sell their controlling ownership stake in the team.
Despite this significant business development, the Celtics, boasting a roster full of prime talent, opted for continuity. They kept their team together, aiming for a repeat championship and a historic 19th banner. They cruised through the regular season with 61 wins and easily advanced through the first round of the playoffs in five games. The strategy was, and remains, to focus on winning for the next six weeks before tackling the business matters following another potential parade.
However, the Celtics unexpectedly find themselves in a critical position, facing a vital Game 3 on Saturday afternoon at Madison Square Garden, trailing the New York Knicks 2-0 in their conference semifinal series. This deficit is particularly stunning considering they held and subsequently lost back-to-back 20-point second-half leads in the first two games, exacerbated by a cold shooting streak where they missed a remarkable 75 three-pointers across those two contests.
If the Celtics cannot turn the tide in this series – especially by overcoming their untimely shooting struggles – the long-term viability of this championship-winning roster could suddenly come under intense scrutiny. Regardless of this season`s ultimate outcome, this group of Celtics faced an uncertain future due to the immense cost of keeping the team, skillfully assembled by team president Brad Stevens, intact under the evolving NBA financial landscape.
The Celtics are in the process of being sold to an investment group led by Bill Chisholm, in a deal reportedly valued at over $6 billion. This record-breaking transaction has been well-received by NBA leadership and signifies strong health for the league. Chisholm, a lifelong Celtics supporter and Massachusetts native, is said to have been assembling the financing necessary for this colossal purchase.
Once the sale is finalized, it appears clear that the Celtics, last sold for approximately $360 million over two decades ago, will face substantially higher operational costs and debt obligations.
The Celtics leadership recognized that the franchise`s present and future success were intrinsically linked to their star wings, Jayson Tatum and Jaylen Brown. Securing them with long-term contracts was a priority that was successfully executed. Brown signed his extension in 2023, followed by Tatum in 2024, locking both players in with the Celtics until the end of the decade at a combined cost exceeding $600 million.
For at least the past three years, as the new collective bargaining agreement between team owners and the players` association was being negotiated, the Celtics identified the year 2025 as a crucial financial bottleneck. We are now just weeks away from this critical juncture, regardless of playoff results, because Tatum`s new, lucrative contract is set to begin. This will push the Celtics into the territory of being a `repeater` luxury tax payer, facing escalating penalties.
Among the current core players, veteran big man Al Horford is the only pending free agent, currently in the final year of his contract. Sources indicate he does not plan to retire and wishes to return. Every other key player – including guards Derrick White and Jrue Holiday, who both signed extensions in 2024, along with center Kristaps Porzingis and Sixth Man of the Year Payton Pritchard – is under contract for future seasons.
Under normal circumstances, this level of roster retention would be celebrated as astute management. If a great team is built, the goal is typically to keep it together as long as possible, and Stevens and his front office have successfully achieved this.
However, the contemporary NBA landscape presents financial complexities that even expert roster construction struggles to overcome, particularly under the new CBA rules.
This leads to a staggering and historic figure that has been discussed privately for the past year. Even if Al Horford does not re-sign, the Celtics are projected to face a total payroll, including luxury taxes, of $464 million next season, according to financial experts. Should the Celtics keep their first-round draft pick – which they likely need for its cost-controlled contract – and fill the rest of their roster spots with minimum-salary players, the total team expenditure could easily surpass $500 million.
Last season, the Celtics achieved record revenue figures, primarily due to their deep playoff run to the championship and hosting four rounds of home playoff games. Clinching the title at home in Game 5 against Dallas, after holding a 3-0 series lead, provided a multi-million dollar boost from an additional lucrative home Finals game. This contributed to the franchise`s revenue reaching around $450 million, as reported by sports business outlets.
One does not need an advanced degree in finance to grasp the emerging mathematical challenge. This significant financial hurdle has largely remained a behind-the-scenes issue for the Celtics throughout this season. Multiple sources indicate that the team has deliberately avoided discussing future spending changes with player agents, maintaining a purposeful focus solely on on-court performance and the goal of winning another championship.
The families of the Celtics players are notably close-knit, a bond strengthened by multiple deep playoff runs and roster stability dating back to the post-COVID era. Stevens and his coaching staff have successfully kept the uncertainty surrounding the team`s ownership transition from becoming a distraction for the players as they pursued another banner, according to individuals within and around the organization.
Earlier this season, NBA teams received favorable news when the league substantially increased its debt limit, raising it from $275 million to $425 million per team. This increase was largely enabled by the NBA`s new 11-year, $77 billion media rights deals set to begin next fall. This provided every team, including the Celtics, with additional financial flexibility to absorb potential losses if they chose to utilize it. In February, rating agencies upgraded the NBA`s credit rating, further affirming the league`s financial health. While the league`s owners are financially secure at a macro level, individual team economics under the new CBA pose challenges.
However, if the Celtics are eliminated in this second-round series by the Knicks – failing to defend their title, a fate shared by the past five NBA champions – the extent of the financial fallout and potential roster decisions becomes significantly more uncertain. High-priced consultants are not needed to advise against spending $500 million on a roster that falls short of reaching the conference finals.
This complex financial reality should not, and likely will not, be at the forefront of the Celtics players` minds during the playoffs. But there is no doubt that the broader discussion across the league about the potential existential threat facing this current Celtics team will intensify with each loss. This looming financial consequence represents a much more serious implication than mere speculation about players` and coaches` reputations, legacies, or other common narratives that circulate within the NBA ecosystem each spring.
