Recently, the NBA powerhouse Boston Celtics has reached a historic moment. According to ESPN’s well-known reporter Shams Charania, a consortium led by Bill Chizem, managing partner of Symphony Technology Group (STG), has agreed to acquire the Celtics for $6.1 billion. The deal not only sets a new record for the highest amount paid for a professional sports team in North American sports history, it also surpasses the record set in 2023 by the Josh Harris consortium for the Washington Commanders NFL team, which paid $6.05 billion. It also breaks the record for the purchase price of an NBA team set two years ago when Matt Ishbia bought the Phoenix Suns for $4 billion.
The deal sparked widespread discussion. Not only Celtics fans, but the entire sports world was asking the following questions: Who is Bill Chizem? Why did the original owner, Wack Grossbeck, choose to sell at a time when the team was on the verge of establishing a dynasty? The Celtics will face up to $500 million in expenses next season. Will the new owner break up the team?
Who is Bill Chizem?
Bill Chizem is the co-founder of Symphony Technology Group. He was born and raised in Georgetown, Massachusetts. He is currently the managing partner and chief investment officer of STG, where he is responsible for the company’s portfolio operations. Chizem has an impressive career history, having worked for Bain & Company, which is closely linked to Bain Capital, where Celtics minority shareholder Pallocca is based.
What’s more interesting is that Chizem has an indirect connection to the current ownership group of the Celtics. STG sold a background screening solutions company, First Advantage, to Silver Lake Partners, and Glenn Hutchins, a member of the outgoing ownership group of the Celtics, is the co-founder of Silver Lake Partners.
However, it is not just his business background that sets Chizem apart, but also his deep affection for the Celtics. Chizem describes himself as an avid Celtics fan and says: “My love for the team goes back almost 50 years, to my first game at the old Boston Garden on my 7th birthday. Since then, I have been completely hooked and have become a huge fan. The Celtics mean a lot to me, and when this opportunity came up, I simply couldn’t say no.”
Wykeham Gross-Beck also expressed his approval of Chizum: “He is an extraordinary man and a true Celtics fan. He was born and raised in the Boston area and has a deep love for the team and the city. In addition, his rapport with the other members of the Celtics management team makes him the perfect choice to be the next owner.”
Why is Wyck Grossman selling the team?
The Grossman family bought the Celtics in 2002 for $360 million and has now sold them for $6.1 billion, achieving a huge capital gain. However, against the backdrop of the NBA’s soaring market value, why would Grossman choose to sell at this time?
According to an exclusive report by the Washington Post, there were disagreements within the Grossbeck family over the team’s ballooning payroll, luxury tax and the potential for huge losses in the near future. 90-year-old Irving Grossbeck (Wade’s father) demanded that his son sell the team. It is reported that Irving holds 20% of the Celtics, while Wade, who has always been the face of the team, actually only owns 3%, far less than his father’s shareholding.
Over the past two years, the Celtics have been crazy when it comes to player contracts. They first offered a historically large contract to Jayson Tatum, then brought in Kristaps Porzingis and Jue Holiday, and extended their contracts with them early. Last summer, the Celtics once again set a record by offering a historically large contract to Jayson Tatum, while also completing early contract extensions with Derrick White and others.
This season, the Celtics’ payroll reached $193 million, and with a luxury tax bill of $53.45 million, total expenses have reached nearly $250 million. It is expected that by the 2025-26 season, the team’s salary and luxury tax will both exceed $200 million, and total expenses could reach a staggering $500 million.
Despite the Celtics’ successful championship last season, the high overhead resulted in little profit for them, and they ultimately only realized about $17 million in revenue. In contrast, top teams like the Warriors easily earn hundreds of millions of dollars, and even the Washington Wizards, who are tanking, are making more. And this season, the Celtics are expected to face a loss of up to $80 million, and their financial situation may be even more severe in the next few years.
A source close to the situation said that Irving is unwilling to continue to provide financial support for such a money-burning team, and the father and son have therefore had a serious disagreement. “This is what happens when the father invests most of the money,” explained another source. “Wicker wants to compete for the championship at all costs, but Irving doesn’t want to lose money.”
Will the new owner break up the team?
After the news broke that the Celtics had been sold for $6.1 billion, the core players on the team began to worry about their future. But from the information available so far, it seems that Chizum will not dismantle the team at least in the short term.
According to the agreement, the acquisition will be completed in two steps. First, after obtaining the approval of the NBA board of directors, Chizum will acquire at least 51% of the team’s shares, which could be completed as early as this summer. Existing shareholders can choose to retain the remaining shares until 2028, when they can sell them at a valuation of up to 20% higher than the current price, based on the growth of league revenue.
Wade Grossbeck revealed that Chizem has invited him to continue as the team’s CEO and director for the next three seasons, and “I’m happy to accept the offer.” This is a positive sign for the Celtics, as Grossbeck will continue to be in charge of team operations. In addition, Brad Stevens will remain as president of basketball operations. With these two professionals in place, the Celtics will at least not repeat the mistakes of the Dallas Mavericks or the Phoenix Suns, which made poor decisions frequently after changing owners.
Chizum has made it clear that he will continue to rely on Grossbeck and Stevens to manage the team over the next three years. “My goal is to win the championship and raise more championship flags, both in the short and long term,” he said. “I have had many in-depth conversations with Stevens, mainly to ensure that we are aligned in our goals and extend the team’s championship window. The plan they have developed makes perfect sense to me.”
For now, the core of the Celtics roster is relatively stable. Mainstays like Tatum, Brown, Horford, Porzingis, White and Prichard are all under contract, with the only exception being Al Horford. Given Horford’s importance and symbolic significance to the team, the Celtics will likely extend his contract as long as he is willing to continue playing rather than retire.
Players’ expectations
The core players of the Celtics are unanimous in their view that the new owner should maintain the status quo and not dismantle the team. Horford says the key is whether the new owner can establish credibility with the Celtic fan base. “If Chizum cuts costs as soon as he takes office, it will be difficult for him to win the trust of this city.”
Tatum emphasizes the importance of culture: ”I hope Chizum can understand the culture we have built and work hard to make it better. We have a lot of great talent, and we have been working together to create something special.”
In a February interview, Jay-Z Brown also said he hoped the new owner would trust and rely on the people in the team who know the game. “The focus must be on winning. I know that business considerations are part of the owner’s overall plan, but winning is equally important. Since I arrived here, we have been winning, so I hope the new owner will understand and respect this.”
Conclusion
A new chapter has begun for Celtic, and despite the challenges of high spending and potential losses, Chisholm’s commitment and the team’s existing professional management team make the future full of expectations. If Chisholm is really as focused on the championship as he says, then Celtic may be entering a more glorious era.
