The sale of the Boston Celtics to a group led by Bill Chisholm could lead the NBA to change its ownership rules concerning private equity. Sixth Street Partners is buying into the Celtics at the maximum allowable percentage of 20 percent, which is more than Chisholm’s contribution.
Chisholm will either need to bring in additional investors where Sixth Street no longer buys into the Celtics above his own stake, or ask for a waiver from the NBA. Because the Celtics are being sold at a $6.1 billion valuation, both the league and the other governors could grant the waiver in order to get the sale across the finish line.
Sixth Street also owns a 20 percent stake in the San Antonio Spurs, while also holding investments in Real Madrid, FC Barcelona and the San Francisco Giants. The private equity firm is based in San Francisco and named after Sixth Street in Austin, Texas. Sixth Street CEO Alan Waxman wanted his firm to embody the “off-beat, free-thinking vibe” of Sixth Street in Austin.
Adam Silver was asked about the Celtics’ sale after Thursday’s Board of Governors meeting and indicated the league isn’t currently considering a change of its rules.
“Not at all,” Silver said. “And while the deal in a preliminary fashion has just been presented to the league, at this time there’s no contemplation of changing our ownership rules.”