Not long after winning their 18th championship, the Boston Celtics made a major announcement that rocked the basketball world. The team announced that the majority owners were selling their stake.
Co-governor Wyc Grousbeck emphasized that the decision was rooted in the importance of family and revolved around family planning and estate planning considerations.
“It’s not my majority stake,“ Grousbeck said. “The control of the team is owned by my family.” “It’s a family that I belong to and then I have the Celtics family that I also belong to.” “The family has been involved for 22 years.”
The Celtics’ payroll is projected to surpass $200 million next year, and will be subject to a substantial luxury tax bill. Franchise valuations have soared, with the Celtics being the most significant team to enter the market in recent times.
Important considerations in family estate planning and succession planning include minimizing tax liabilities, facilitating fair distribution and protecting family wealth from creditors or other liabilities.
This is important to keep in mind. If your family owns a valuable asset, such as a business or an interest, it’s essential to be proactive and recognize the right time to sell or transfer ownership. Deciding what to do about family assets, such as a family business, is something family members need to consider within their lifetimes. If you don’t plan, the death or exit of a family member could represent a sudden shock that could affect the value of a business and the stability of the family holdings.
Estate Planning for Your Legacy
The Celtics ownership transition will be a phased transition, with 51 percent of the franchise expected to be sold soon and the remaining 49 percent by 2028. Co-governor Steve Pagliuca has expressed his intent to remain part of the ownership group. Grousbeck announced that he expected to stay on until 2028. This gradual transition is designed to maintain stability while maximizing the franchise’s value in the market.
It’s not just in sports that a team effort pays off. Family business ownership involves multiple interests, not to mention the storied legacy of a brand, organization or company. Decisions must balance the family legacy with the protection of family assets. Estate planning should be a highly coordinated effort with family members, business advisers and estate planning advisers all working together to ensure a smooth transition and the protection of family wealth.
The Celtics ownership transition offers a unique lens through which to explore the importance of strategic estate planning in ownership transitions. Do you and your family members have an interest in a family business? If you do, it may be time for an estate planning check-in to reevaluate your family’s plans for the future. Please contact our experienced Massachusetts estate planning attorneys today to learn more about how we can support your family business and legacy for generations to come. Please contact Rob Arone or Julia Abbott at 781-239-8900 or email them directly below.
