Are the $5.1 billion worth Boston Celtics courting Middle East investors for stake? Owner Wyc Grousbeck's gulf pitch explored
After the Boston Celtics won the 2024 NBA Championship, it was announced that they were up for sale. With the team's valuation at an all-time high, majority owner Wyc Grousbeck and his family began the process of searching for an owner to take the helm of the famed franchise.
This week, reports emerged indicating that Grousbeck was in the Middle East pitching to the United Arab Emirates' Sovereign Wealth Fund. While the group would only be able to purchase 20% of the franchise, the news is the latest signal that Middle Eastern countries are continuing to get involved in US sports.
In the past, the Saudi Public Investment Fund has received considerable attention as they continue to dive into the world of sports with investments in tennis, combat sports, LIV Golf and soccer.
Given that, Wyc Grousbeck's meeting with the United Arab Emirates Sovereign Wealth Fund's leadership caught the attention of sports fans. Considering the Celtics are valued at $5.1 billion, it seems unlikely that one owner will come along and purchase the team outright.
Moreover, the team boasts a massive payroll, with players like Jaylen Brown and Jayson Tatum on contracts exceeding $200 million. With the UAE's Sovereign Wealth Fund, though, the Grousbeck family could sell off 20% of the team to a minority investor in the Middle East that's capable of taking on the payroll.
Grousbeck would then be able to find another buyer for the remaining 80% stake in the team in the US. Despite the reports, though, the Celtics declined to comment when asked about the situation by Bloomberg.
Looking at the NBA's interest in making push into Middle East market amid talk of Boston Celtics' pitch in UAE
Apart from the fact that countries like the United Arab Emirates and Saudi Arabia are getting more involved in US sports, the NBA has especially looked to grow its presence in the Middle East.
In 2021, the league entered into a multi-year partnership with the United Arab Emirates. That has seen teams head overseas to the Middle East to participate in preseason games annually.
That has led to some criticism for the NBA and accusations that the league is enabling the country's "sportswashing." Nevertheless, the NBA seems to be committed to growing its presence in the region.
NBA spokesman Mike Bass was asked about the situation by Bloomberg amid reports that the league is considering opening an office in the area. He said:
“We are exploring a number of options to continue to grow our fan engagement efforts in the Gulf region, where there is growing interest in the NBA.”
Although nothing has been finalized yet, with the UAE being the NBA's leading sponsor for the NBA Cup, and the latest meeting with Wyc Grousbeck, the Boston Celtics could be the latest investment in US sports from the Middle East.