Following the Celtics’ championship celebration last summer, the team faced crucial decisions off the court.
On July 1, ten days after the victory, the team’s governor, Wyc Grousbeck, surprised the NBA by announcing the sale of the franchise.
Despite this, the Celtics, with a team full of talent, sought to repeat the success and win their 19th championship. They won 61 games in the regular season and advanced in the first round of the playoffs.
However, the Celtics find themselves in an unexpected situation in the third game of the conference semifinals against the New York Knicks, losing 2-0.
If the Celtics fail to turn the tide in this series, especially by overcoming their shooting slump, their continuity as a team will be in doubt.
Regardless of what happens this season, the future of this group of champions is uncertain due to the cost of maintaining the team, masterfully built by President Brad Stevens.
The Celtics are being sold to a group led by investor Bill Chisholm for over $6 billion, a record transaction that thrilled NBA executives.
Chisholm, a Celtics fanatic and Massachusetts native, has been forming a coalition to finance this major purchase. Once it is finalized, the Celtics, which were sold for $360 million over 20 years ago, will have a much more expensive mortgage.
The Celtics secured the future of Jayson Tatum and Jaylen Brown with long-term contracts, which will keep them on the team until the end of the decade for more than $600 million.
For three years, the Celtics have identified 2025 as a critical point due to the new collective bargaining agreement and the entry into force of Tatum’s new contract, which will make them a team with a high luxury tax.
Among Boston’s key players, Al Horford is in the final year of his contract. The rest of the team, including Derrick White, Jrue Holiday, Kristaps Porzingis, and Payton Pritchard, is under contract for the future.
This situation presents complex problems that go beyond the expert construction of the template.
The cost of the team is significant. Even if Horford doesn’t re-sign, Boston will face a payroll of $464 million next season, including luxury taxes.
If the Celtics keep their first-round pick and fill out the roster with minimum salaries, the team’s payroll could exceed $500 million.
Last season, the Celtics set a revenue record, thanks to their success and home playoff games. Losing the fourth game in Dallas last year generated a significant profit for them, which helped boost the franchise’s revenue to around $450 million.
The financial situation has been a concern for the Celtics. The team has not had conversations with the players’ agents about changes in future spending, and the strategy has been to maintain focus on the game.
The Celtics players have a very close relationship, fostered by deep playoff runs and the continuity of the roster since the end of the pandemic.
Stevens and his team have tried to keep the uncertainty about ownership out of the players’ minds, and they have succeeded in doing so.
Earlier this season, NBA teams received good news when the league significantly increased its debt limit, giving them room to deal with potential losses.
However, if the Celtics don’t get past the second round against the Knicks, the impact could be significant. The team’s financial situation could be seriously affected.
