Rumors about potential issues with the transaction sprouted almost as soon as it was announced in late March, including reports that private-equity firm Sixth Street Partners was contributing more money than Chisholm. The NBA’s private-equity ownership rules stipulate that a PE firm cannot be the largest stakeholder in a team and that the controlling owner must contribute at least 15% of the purchase price. It wasn’t just media speculation. Steve Pagliuca, a minority owner since 2002 who lost to Chisholm’s group in the battle to buy the Celtics, wrote a fiery public letter to fans last month that said his proposal was “fully guaranteed and financed” and had “no debt or private equity money that would potentially hamstring our ability to compete in the future.” Pagliuca even said: “If the announced transaction does not end up being finalized, my partners and I are ready to check back into the game…”
by Hoops Hype