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Celtics Sold for $6.1 Billion: What This Means for Jaylen Brown

Last week, the Celtics were sold to William Chisholm, a private equity executive, for an eye-popping $6.1 billion. While this price tag wasn’t unexpected, it’s still hard to wrap our heads around—especially considering the team doesn’t even own its own arena, and likely never will. (A big thanks to loyal subscriber ‘B’ for cluing us in on this key piece of info.)

If I’m Adam Silver—or any commissioner in one of America’s major league sports—I’m celebrating. Someone just paid a record sum for a team that still rents its home? This is great news for everyone else; the value of every team just went up.

But the sale of the Celtics comes with consequences—some expected, others not. One consequence? We’re predicting that Jaylen Brown has about 100 games left as a Celtic.

Now, this prediction isn’t a bold one. In fact, it’s far crazier to have believed Brown was untouchable when the Grousebecks were in charge. Back then, the idea of trading him, no matter the cost, was simply off the table. But with new ownership in place, here’s a little business context to explain why Brown’s time in Boston is likely coming to an end.

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Private Equity Dynamics

There’s been a fair share of misguided chatter online, suggesting that the Celtics are now “ruined” because they’re owned by a private equity guy. Let’s clear up this misunderstanding: William Chisholm bought the Celtics, not his private equity firm. Yes, Chisholm is a private equity professional, but that doesn’t mean the Celtics are under the thumb of a private equity group.

Still, we’re skeptical too.

Here’s a quick refresher on the rules regarding private equity (PE) firms and NBA ownership:

1. Teams can sell a maximum of 30% of ownership to PE firms.

2. A single PE firm’s stake cannot exceed 20% or surpass that of the controlling owner.

3. PE firms are prohibited from having control or significant influence over operations (though, in reality, things can be a bit murkier).

Some teams with PE-backed investments (39% win rate, 107-170 record) include:

• Kings

• Golden State

• Jazz

• Wizards (mostly sovereign wealth through a PE structure)

Teams with owners who come from PE backgrounds (43% win rate, 152-194 record) include:

• Bucks

• Hawks

• Hornets

• Pistons

• 76ers

With these numbers in mind, it’s hard to imagine that PE principles won’t begin to influence the Celtics’ operations, especially when you factor in the team’s luxury tax bill and the cost of renting their arena (this is a big deal..more on this below).

The Curious Case of Wyc Grousebeck

Another head-scratcher in this sale: Wyc Grousebeck, the current owner, is staying on as the team’s Governor for the next three years. This is especially odd considering the Celtics are now in the hands of a private equity mogul. Wyc, alongside his father Irving, purchased the team for $360 million and led them to two championships. Wyc has been the public face of the team, while Irving pulls the strings behind the scenes.

So why is Wyc sticking around? It’s an unusual move—one that raises questions about the team’s direction. Given that Wyc just secured long-term contracts for two superstar players and likely doesn’t hesitate to re-sign Al Horford (the ultimate “glue guy”), it’s hard to imagine how these differing philosophies will mesh. We wouldn’t be surprised if things begin to unravel in a couple of years, with the parting of ways attributed to “philosophical differences.”

A New Arena? Not Anytime Soon.

There’s no concrete evidence that the Jacobs family (who owns the Bruins and TD Garden) is actively lobbying local government to maintain their sports monopoly in Boston. However, they are an undeniable force in the city’s real estate market, and the talk of a new stadium remains just that—talk. Don’t hold your breath for any new developments, especially the often-rumored new stadium in Everett, which seems more like a pipe dream than a reality.

The reality is, without their own arena, the Celtics' revenue potential will always be limited. They’re essentially renting their home, and any new revenue streams—such as hosting more events or having naming rights—are controlled by someone else. That’s a huge hurdle for any team trying to compete at the highest level.

When Chisholm was asked about a new arena, he swiftly brushed off the question—rightfully so, given the Celtics’ lease runs through 2036.

So, What Does This Have to Do with Jaylen Brown?

Here’s where we get to the crux of the matter: Wyc will likely remain on as Governor for a season and a half or so, before the new ownership takes a firmer hand. But we can’t imagine the new owners sticking with a ballooning luxury tax bill while also carrying one of the NBA’s highest payrolls (which is expected to hit around $500 million).

Wyc will probably green-light another deal for Al Horford, because he’s one of the key pieces that keeps the team competitive. However, as the novelty of the new ownership fades, we expect to see the Celtics begin trimming payroll—and that starts with trading Jaylen Brown.

The clock’s ticking. Stay tuned.

Have a great week!

Ahmed and Peter