Allegations surrounding the Boston Celtics’ soaring payroll have reportedly created a divide within the family owning the team, leading the aging patriarch to insist that his financially ambitious son sell the storied franchise, as The Post has discovered.
Irving Grousbeck, a 90-year-old entrepreneur from Massachusetts who holds approximately a 20% controlling stake in the team, expressed reluctance to cover significant projected losses stemming from hefty contracts that were instrumental in securing the Celtics’ record 18th NBA championship in June, multiple sources informed The Post.
To achieve this title, his 63-year-old son, Wyc Grousbeck, assembled the league’s most expensive roster. This team is expected to incur costs around $500 million for the 2025-26 season following the substantial contracts allocated this summer to retain its star players.
Celtics Owner Wyc Grousbeck seeks additional championships at any cost, according to sources. NBAE via Getty Images
Shortly after celebrating the NBA championship, Wyc Grousbeck — the face of ownership despite holding a roughly 3% stake — made the surprising announcement to put his cherished hometown team up for sale.
“That’s what happens when dad contributes most of the funding,” remarked one source.
During their championship run last season, the team barely broke even, as sources reported.
For the upcoming season, which begins next month, they are projected to incur losses of approximately $80 million due to luxury tax penalties for exceeding the salary cap, according to a source familiar with the sale process.
This figure is likely to escalate significantly in the 2025-26 season when more severe salary cap penalties are implemented.
The 11 players under contract — including stars Jayson Tatum, who secured the largest contract in NBA history this summer, and Jrue Holiday, who also signed a new deal — are owed $225 million, resulting in a $280 million luxury tax penalty for the team, as ESPN reported.
“Wyc claims we’ll spend whatever it takes, but dad isn’t keen on losing money,” another source mentioned.
In their shocking announcement, the Grousbecks stated they are selling the team for “estate planning purposes.”
Wyc Grousbeck reaffirmed this statement, speaking for the family when he was contacted by The Post on Friday.
Irving Grousbeck (left) is said to exert true influence over the team, sources indicate. Boston Globe via Getty Images
“The Grousbeck family is selling the team for estate and family planning reasons. It is completely incorrect to suggest the sale relates to losses in any way,” he asserted.
“Since Boston Basketball Partners acquired the team 22 years ago, there has not been a capital call from ownership or any need for additional investments, nor do we anticipate one.”
Irving Grousbeck did not respond to requests for comment via calls or emails.
The revered franchise, once led by legends Red Auerbach, Bill Russell, and Larry Bird, was sold for $360 million in 2003 to the group helmed by Irving Grousbeck, a graduate of Harvard Business School and a lecturer at Stanford University.
Celtics forward Jayson Tatum recently signed an unprecedented contract in NBA history. AP
However, part of the current financial challenges stems from the fact that they do not own TD Garden, the Celtics’ home arena, which means they miss out on revenue from concerts and other events that could help mitigate losses, according to sources.
The anticipated losses and the absence of a venue included in the sale could deter potential buyers from meeting the NBA’s reportedly desired price of $6 billion for the team as it aims to establish a benchmark for an expansion franchise in Las Vegas.
“This situation will be intriguing because the financials are unfavorable,” one source stated.
“Achieving $6 billion for the Celtics will be a tough challenge,” another source mentioned. “It should be closer to $5 billion.”
Last year, the Dallas Mavericks, who were defeated by Boston in the NBA Finals, sold for $3.5 billion.
Wyc Grousbeck is prepared to invest for more championships, yet he isn’t the primary financial contributor. Getty Images
That sale fell short of the current record of $4 billion that Mat Ishbia paid for the Phoenix Suns in 2022.
This week, former Milwaukee Bucks star Junior Bridgeman reportedly acquired a 10% stake in his former team also at a $4 billion valuation.
The proposed arrangement for the Celtics sale is a compromise where they would sell a 51% stake in the upcoming months and the remainder in 2028.
Wyc Grousbeck would continue as controlling owner until the sale concludes.
According to sources, their bankers at JPMorgan and BDT & MSD Partners have yet to issue sales books.
The Celtics retained Jrue Holiday, along with Tatum, Derrick White, and Sam Hauser during this offseason to maintain their core lineup. AP
The Post revealed exclusively that Fenway Sports Group, owners of the Red Sox, have shown interest in the team.
Additionally, Stephen Pagliuca, co-chairman of private equity powerhouse Bain Capital and owner of slightly over 20% of the team, is reportedly interested as well.
NBA Commissioner Adam Silver has expressed disfavor for staggered sales but indicated he might make an exception for this situation.
“We’ve asked the Celtics to present their considerations to us, and we will evaluate it on a unique basis. Each of these situations presents itself in a different light,” Silver stated on Tuesday.
Family Feud: Boston Celtics’ Soaring Payroll Sparks Ownership Conflict as Wyc Grousbeck Faces Pressure from Father to Sell Team
Understanding the Ownership Landscape of the Boston Celtics
The Boston Celtics, one of the most storied franchises in NBA history, are currently facing significant internal strife. At the heart of this family feud is Wyc Grousbeck, the team’s managing partner, who is under increasing pressure from his father, a prominent figure in the family business. This conflict arises against the backdrop of the Celtics’ soaring payroll, which has become a focal point of discussion among fans, analysts, and stakeholders alike.
The Rising Payroll: A Financial Overview
Over the past few seasons, the Boston Celtics have seen their payroll increase dramatically. This surge can be attributed to several factors, including:
- High Player Salaries: With star players like Jayson Tatum and Jaylen Brown commanding lucrative contracts, the team’s salary cap has been stretched to its limits.
- Luxury Tax Implications: The Celtics are now facing the prospect of exceeding the luxury tax threshold, which could have significant financial repercussions.
- Increased Expectations: With a rich roster and playoff aspirations, the pressure to invest in talent has led to financial commitments that raise eyebrows among ownership.
2019-2023 Salary Cap Breakdown
| Season | Salary Cap | Team Payroll | Luxury Tax Status |
|---|---|---|---|
| 2019-2020 | $109M | $95M | Below |
| 2020-2021 | $112M | $120M | Above |
| 2021-2022 | $119M | $135M | Above |
| 2022-2023 | $123M | $145M | Above |
The Family Dynamic: Wyc Grousbeck and His Father’s Influence
Wyc Grousbeck, who has been at the helm of the Celtics since 2002, has navigated various challenges throughout his ownership. However, the recent financial decisions and strategic direction have led to tensions within the Grousbeck family. His father, who has significant influence over the family’s financial ventures, has reportedly expressed concerns regarding the sustainability of the Celtics’ spending habits.
The Tensions Unfold
– **Pressure to Perform:** With the escalating payroll, the expectations for immediate success have intensified. Wyc faces the challenge of balancing team performance with financial sustainability.
– **Family Expectations vs. Professional Reality:** Wyc’s father’s legacy in business and finance creates an environment where traditional financial prudence clashes with the high-stakes world of professional sports.
Impact on Team Performance and Fan Sentiment
As the payroll continues to rise, how does this affect team performance and the sentiments of passionate Celtics fans?
Performance Implications
– **Roster Stability:** A high payroll often indicates a stable roster filled with talent. However, if the financial model collapses, it could lead to forced trades and departures that disrupt team chemistry.
– **Injury and Depth Issues:** The financial strain may limit the team’s ability to acquire additional players, potentially leading to depth issues if key players get injured.
Fan Reactions
– **Support for Investment:** Many fans appreciate ownership’s willingness to spend on talent, seeing it as a commitment to winning.
- **Concerns over Sustainability:** Conversely, some fans express worries about long-term viability, questioning whether the current spending strategies will lead to financial ruin or a championship.
The Broader Context: NBA Trends in Payroll Management
The Celtics’ situation is not unique; many NBA teams are grappling with similar issues regarding payroll management. Understanding these trends provides a more comprehensive perspective on the situation.
Increasing Salaries Across the League
– **Supermax Contracts:** The introduction of supermax contracts has led to a significant increase in player salaries, affecting team budgets league-wide.
– **Rising Revenue Streams:** While many teams are benefiting from increased television and merchandise revenue, the financial burden of paying star players continues to grow.
Strategies for Sustainable Payroll Management
– **Draft and Develop:** Teams are increasingly focusing on cultivating talent through the draft to balance high salaries of superstar players.
– **Smart Trades:** Executing strategic trades can help teams manage payroll while still maintaining competitive rosters.
Case Studies: Other Teams Facing Ownership Conflicts
Examining the experiences of other NBA teams can shed light on potential outcomes for the Celtics.
1. Brooklyn Nets: A Cautionary Tale
The Nets faced a similar ownership conflict when their payroll skyrocketed due to the acquisition of high-profile players like Kevin Durant and Kyrie Irving. The result? A toxic atmosphere and pressure to deliver immediate results, ultimately culminating in significant trades and a rebuilding phase.
2. Golden State Warriors: Balancing Act
In contrast, the Warriors have successfully navigated high payrolls by balancing star power with a solid core of role players and a focus on development. Their approach has led to multiple championships and a sustainable business model.
Benefits of Addressing Ownership Conflicts Early
Resolving these internal conflicts can yield several benefits for the Celtics:
– **Improved Decision-Making:** Clear communication and alignment within ownership can lead to better strategic choices.
- **Fan Trust:** A stable ownership situation reassures fans and strengthens community ties.
– **Long-Term Success:** Focusing on sustainable financial practices can pave the way for consistent competitiveness.
Practical Tips for Ownership and Management Conflict Resolution
To prevent or mitigate ownership conflicts, consider the following strategies:
- Open Communication: Establish regular discussions among ownership to address concerns and explore strategic options.
- Financial Transparency: Maintain clarity on financial decisions, ensuring all owners understand the implications.
- Engage Stakeholders: Involve key stakeholders, including fans and community members, to gauge public sentiment and support.
- Professional Management: Hire experts in sports finance to provide insights and guidance on payroll management.
First-Hand Experience: Insights from NBA Executives
Various NBA executives have shared their thoughts on managing ownership conflicts and high payrolls:
– **”It’s crucial to have a clear vision and ensure everyone is aligned with that vision. Otherwise, the potential for conflict increases.”** – Former NBA Executive
– **”In our experience, maintaining open lines of communication allowed us to navigate difficult financial decisions more easily.”** – Current NBA Team Owner
Conclusion: Navigating the Future for the Celtics
While the Boston Celtics are currently facing significant challenges related to payroll and ownership dynamics, the path forward is not insurmountable. By addressing internal conflicts head-on, focusing on sustainable financial practices, and maintaining a commitment to winning, the Celtics can emerge from this turmoil with renewed vigor and a clear vision for the future.
With the eyes of the basketball world watching, how Wyc Grousbeck chooses to navigate this situation will be pivotal for the franchise’s legacy.
