Advertisement - scroll for more content
Advertisement
Advertisement
Advertisement
Advertisement - scroll for more content
Advertisement
Advertisement
Advertisement
Aditya Mittal, chief executive of a global steel giant, had explored a bid to become lead governor but eventually backed Chisholm with a $100 million commitment. Mittal’s interest swelled during visits to Boston, though, and he upped his stake to $1 billion and became alternate governor. Pagliuca also released investors from his group, allowing them to join Chisholm. And Wyc Grousbeck, who remains a visible presence within the franchise, wound up with a 13 percent stake. It will be reduced to about 3 percent when the second phase of the deal closes in 2028.
Three years later, Chisholm co-founded the software-focused private equity firm Symphony Technology Group, and he became a shrewd dealmaker who found potential in flawed businesses. In one early transaction, he bought a struggling company that scraped data from UPC codes for about $100 million. Chisholm helped revive the business and sold it for nearly $1 billion about six years later. According to industry sources, there had been discussions within the Grousbeck family about selling in 2033. But the decision to divest sooner for estate and family-planning purposes was made in January by the family’s patriarch, 91-year-old Irv Grousbeck. Irv’s son, Wyc, who has been lead owner since the family purchased the team from Paul Gaston for $320 million in 2002, thought it was too soon.
Grousbeck and other executives were relieved that Chisholm’s passion for the team appeared authentic. He told a story about the 1980s broadcast crew of Bob Cousy and Gil Santos. He said how Leon Powe, a role player on the 2008 title team, was his favorite Celtic ever. “This wasn’t what I wanted to do at all, sell the team,” Wyc Grousbeck said. “But if we’re going to sell it, I knew at the first meeting that selling to Bill would be a fantastic outcome.”
But he almost didn’t win. Chisholm bought the Celtics at a $6.1 billion valuation but only outbid the second-place suitor by less than $100 million in the blind auction, two sources with knowledge of the bids said. That gap is a relative pittance in such a high-priced transaction, but it was enough. For a Celtics fan who grew up in nearby Georgetown, Mass., it was barely believable. “Anyone who’s had their boyhood team or girlhood team and have this happen — I want to say it’s like a dream come true but… I didn’t even know to dream this. What does it mean to be the owner of the Boston Celtics? I don’t know.”
But Grousbeck’s share of the franchise was diluted as Chisholm syndicated his investment group. Chisholm said he raised more money than expected, and Grousbeck’s ownership stake fell under 15 percent, the NBA’s minimum threshold to be the lead governor. He is instead an alternate governor. “He’s done a great job, and coming in here, I have a lot to learn,” Chisholm said. “The new owner curse is a real thing, and avoiding some of that sort of thing … having someone who could be my partner and allow me to ease into it, versus jumping in headfirst, I felt like was a really good approach.”
Advertisement
The Boston Celtics hosted a press conference Thursday afternoon, introducing their new leadership group. The group is led by Bill Chisholm, who will serve as lead governor for the team — a role long held by Wyc Grousbeck. Grousbeck will serve as an alternate governor, co-owner and CEO.
Chisholm says he and his group are up to the challenge of upholding the Boston Celtics legacy. Aditya Mittal, a new investor for the Celtics, will also serve as an alternate governor, with Rich Gotham and Brad Stevens returning to their roles as team president and president of basketball operations, respectively.
And while Pierce seems almost resigned to that situation, he is accepting, too, of the Celtics’ dramatic roster changes that have coincided with the arrival of new lead owner Bill Chisholm. The financial and maneuverability constraints of the NBA’s second apron were about to come crashing down on the franchise, no matter whose name was atop the organizational chart. Putting off the pain didn’t seem like a viable path after Tatum’s tumble and the New York noogie. Changes were coming. “You know what? That’s normal,” Pierce said. “Like, think about this: when Wyc (Grousbeck) and the new ownership came in there, what did they do? Trades, new coach, everything. That’s sports. I don’t care what type of team you got; whenever you’ve got new ownership, there’s always going to be changes. That’s what I learned in this business. I expected that. “Then as far as them getting rid of Jrue and Porzingis, you know they’re trying to cut costs and things of that nature — which is understandable. They’re business people, too.”
"This just happened in Boston and in L.A. In Boston, Wyc Grousbeck, you know, decided—or came to an agreement with the new owners of the Celtics—that he’s not going to remain in charge. And he was going to remain in charge as the CEO. It’s a different kind of operation than mine. We haven’t seen what will happen with Jeanie Buss. Jeanie says she’s going to retain control." Mark Cuban: "You know, you’ve got to have 15% to be a governor, right? I have 27%. And that was intentional." "So what happened? Mark Cuban: There were things in the contract that I don’t want to get into. I’ve already said this—there’s no reason to relitigate it. It’s done. It’s done, right? I’d rather talk about Cooper Flagg and what’s next because I can’t change any of it. What’s done is done. I try not to look back and think, 'would’ve, could’ve, should’ve,' because that doesn’t change sh*t. I’m still a Mavs fan for life, and that’s what matters."
“The day-to-day operational approach here is the same as it ever was,” Chisholm said. “Wyc and I are arm in arm here leading the charge with the Celtics. Frankly, the change that needed to be made was more of a league issue.” “Wyc’s ownership dipped below 15 percent, but it dipped below 15 percent for good reason. We had a lot of demand for investors to put money in, so we raised a little more money. I think that was in the best interest of everyone and the Celtics, because we want to make sure we have all the firepower necessary to chase championships, and Wyc has been that kind of team player all along.” Added Grousbeck: “When it became clear the governor title was not going to be available because of technical reasons, because of math, Bill said, ‘Well, then we’re just not going to use that word around the office.’ So that says a lot about Bill, that he doesn’t care. He just wants to do the right thing for the team, and I feel the exact same way. We’re shoulder to shoulder.”
Advertisement
Mike Vorkunov: The group by Bill Chisholm has taken control of the Boston Celtics. Chisholm will serve as lead governor. Wyc Grousbeck and Aditya Mittal will be alternate governors. Grousbeck will be CEO and run day to day with Chisholm.
Ramaona Shelburne: According to multiple league sources, while Bill Chisholm will technically be the Celtics Governor, he and Wyc Grousbeck plan to run the team together as originally planned. But with Chisholm as Governor and Grousbeck as alternate Governor and CEO. The change in structure was due to league rules, including minimum ownership, sources said. Grousbeck will end up owning slightly less than the required 15 percent given final funding for the transaction. Operations of the team should remain consistent with Brad Stevens and Rich Gotham continuing to run basketball and business operations.
Wyc Grousbeck is expected to retain the CEO title, as planned, and be an alternate governor after the sale is complete, a source said.