Celtics minority owner to sell stake at this massive valuation: Report
The sale highlights the value of the Celtics, a team considered to be among the NBA’s most valuable franchises.
Boston Celtics minority owner Jim Pallotta is cashing out his stake in the storied NBA franchise, according to a report Friday.
Pallotta is selling his eight percent stake to Steve Pagliuca, a managing director at private investment firm Bain Capital, in a deal that values the Celtics at $2.8 billion, Sportico reported. Pagliuca is a Celtics majority stakeholder and executive committee member for Boston Basketball Partners, the consortium of investors that bought the team in 2003.
Pallotta, like Pagliuca, is a billionaire serving as the founder and head of the Raptor Group, a private investment company. Palotta had previously worked for 16 years with legendary investor Paul Tudor Jones, a pioneer of the modern-day hedge fund industry.
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The deal is pending NBA approval, according to Sportico. Both Pallotta and Pagliuca declined to comment.
The sale highlights the value of the Celtics, a team considered to be among the NBA’s most valuable franchises. The team has an estimated valuation of $3.1 billion, according to Forbes.
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Minority stakes in professional sports franchises are often difficult to sell and offered at a discount compared to the team’s valuation. Despite their steep price tag, the stakes rarely provide the operational control often sought by wealthy buyers.
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The financial impact of the coronavirus pandemic further complicates franchise sales in the current sports environment. The pandemic forced the Celtics and other NBA teams to conclude the 2019-20 season in a “bubble” environment at Walt Disney World resort in Orlando, Florida.
The New York Knicks are the NBA’s most valuable team, with an estimated valuation of $4.6 billion, according to Forbes.