By james art A longtime Boston Celtics owner with a minority stake in the team is trying to gain control of the storied franchise — at a discount from the expected $6 billion price tag, The Post has learned.
Steve Palucca, who owns about 20 percent of the reigning NBA champions, has pressured minority shareholders, who own roughly another 30 percent, to join him in bidding for the Celtics, sources close to the situation said.
If he can get firm commitments from the other investors, that would give him leverage over any deep-pocketed buyers who may step in when the bidding process stalls, the sources said.
Palyuka, the former co-chairman of Bain Capital, has hired investment banks Allen & Co. and Raine Group to help him with his bid, sources said.
The Celtics’ controlling owners — Irving Grousbeck and his son Wyke — put the team up for sale in July, days after Boston won its record 18th NBA title. They own about 30% of the team.
But Irving Grousbeck, the 90-year-old patriarch who owns a larger stake than his son, has given up on financing big losses on the horizon from growing contracts, The Post exclusively reported.
The Grousbecks, who said they are selling the team for estate planning purposes, began the process earlier this month, retaining JPMorgan and BDT & MSD Partners to reach a select group of “qualified buyers targeting initial scope,” Boston Herald reported.
So far, no mega-billionaires — such as Amazon founder Jeff Bezos or Citadel chief Ken Griffin — have emerged, sources told The Post.
John Henry’s Fenway Sports Group, which owns the Boston Red Sox, has expressed some interest but is not yet in the fray, sources said. If he does come on board, Henry may prefer to partner with Palyuka and combine the Celtics and Sox rather than go it alone, one source said.
“There is tremendous interest — from people who are never going to be owners,” said one sports banker following the process, explaining that none of these potential suitors have enough money on their own to meet the asking price.
The Celtics were valued at $6 billion by Forbes in their annual ranking released last week — which puts them fourth in the 30-team league.
The NBA would like to see the franchise sold for at least that much to set a floor for expansion fees from expected new teams in Las Vegas and Seattle.
However, if Palyuka is the only viable candidate, he could likely lower the asking price from $6 billion to $5 billion, the sources speculated.
The Celtics don’t own their arena, TD Garden, and are likely to lose money in the coming seasons because of their massive payroll, which puts them on the hook for tens of millions of dollars in luxury tax fines.
“When you pay $6 billion for an NFL team, they make $250 million a year,” the sports banker said. “The Celts are losing money and that makes it a bit more difficult.”
The current record price for control of an NBA franchise is the $4 billion paid for the Phoenix Suns by Matt Ishbia in 2022.
One complicating factor for Pagliuca in achieving his longtime dream of majority ownership may be the alleged strained relationship with Wyc Grousbeck, according to multiple sources who spoke to The Post.
The two have not shared power for years, although Palyuka is managing director, two sources said.
One of the sources pointed to an incident after the Celtics won their last title in which Wyc Grousbeck seemingly pushed Pagliuca out of the NBA’s postgame celebration.
A spokesman for Palyuka insisted there was no animosity between the two.
“Steve and Wyke enjoy both a close personal and professional relationship and any claim to the contrary is simply false,” the spokesperson said.
The representative noted Wyc Grousbeck’s investment in Pagliuca’s Italian soccer team Atalanta, as well as other ventures.
“Steve values Wyc’s friendship and their families have grown closer over the 20-plus years since they bought the Celtics,” the spokesman said.
The Grousbecks hope to complete the sale next year, with Wyc expected to remain at the helm until 2028.