Old Colony Law’s Post

At first glance, Wyc Grousbeck's decision to sell the Boston Celtics seems like a classic "buy low, sell high" scenario, especially after their recent NBA championship. However, the underlying reasons are far more nuanced and relate to estate planning. As NBA franchises appreciate in value, transferring ownership to future generations becomes increasingly complex due to tax implications and league ownership rules. Heirs may face significant estate taxes, and the NBA imposes stringent regulations on ownership transfers, making it challenging to keep the team within the family. High-value assets like NBA teams pose unique challenges. Owners often face substantial estate taxes when passing the team to heirs, potentially forcing a sale. Additionally, league rules can restrict ownership transfers, further complicating succession planning. These considerations underscore the importance of comprehensive estate planning for any high-net-worth individual or business owner. As an advisor, part of my role is to help clients navigate these complexities, preserve their legacies, and ensure smooth wealth transfers. Stay informed and plan ahead! 🏀💼 #WealthManagement #EstatePlanning #NBA #TaxPlanning #SuccessionPlanning

Celtics are on the block after taking NBA title. The team’s ownership group, Boston Basketball Partners LLC, has decided to sell the franchise for estate and family planning considerations, according to a Celtics statement. The owners expect to sell a majority interest this year or early 2025, with the remainder closing in 2028. The Celtics are going on sale at a time of surging valuations for pro sports teams. That’s prompted more franchises to sell minority stakes or offer up control. In the past year, the NBA alone has seen three franchises change hands, with the Phoenix Suns, Charlotte Hornets and Dallas Mavericks all going for $3 billion or more. Sportico values the Celtics at $5.1 billion, the fourth-highest in the league. The current ownership group, led by Wyc Grousbeck and including Stephen Pagliuca, bought the team for $360 million in 2002. #estateplanning #premiumfunding #lifeinsurance #premiumfinance #taxstrategies #estatetax #PPLI

The Fate of the Niners Franchise: What Happens if They Lose the Super Bowl? In this video, we discuss the potential consequences for the San Francisco 49ers if they were to lose the Super Bowl. Will key players like George Kittle, Deebo Samuel, and Christian McCaffrey consider leaving the team? Join the conversation and share your thoughts! #49ersFranchise #SuperBowlConsequences #NFLDiscussion #KeyPlayers #SanFrancisco49ers #FootballDebate #SportsAnalysis #OffseasonSpeculation #TeamLoyalty #SportsTalk

The NBA board of governors is meeting today to vote on the sale of the Dallas Mavericks by Mark Cuban to Miriam Adelson and her son-in-law Patrick Dumont. It was reported in late November that Cuban had entered into an agreement to sell a majority stake in the NBA franchise to the family that runs the Las Vegas SandsLVS +1.2% casino company for $3.5 billion. While the city of Dallas owns American Airlines Center the team share the arena’s economics with the NHL’s Dallas Stars. The sale would leave the Stars with 50% of the arena’s economics, the Adelson group with 30% and Cuban with 20%, according to sources. Two sources familiar with the deal tell Forbes that the deal also gives the buyers the right to acquire more shares from Cuban in four years. The “strike price” of the option is also at a $3.5 billion valuation—apparently well in the money. In October we valued the Mavericks at $4.5 billion, seventh in the NBA. With the first purchase, Adelson and Dumont would get 68% of the Mavericks. The option is for Adelson and Dumont to buy antother 20% from Cuban.

Days go slow, years go fast. ⏳✨ One of my first mentors in business shared this wisdom with me at the Hynes Convention Center in Boston, right outside where the Celtics recently celebrated their championship parade, becoming the winningest team in NBA history. 🏀🏆 His name was Bill Walsh—not the historic coach of the San Francisco 49ers, the only other team besides the Patriots that can claim dynasty status. 🏈 Bill Walsh mentored Bill Belichick, who famously said, "I never lost a game, I simply ran out of time." ⏰ Whether it's building a dynasty in a sports franchise or creating your own cash flow dynasty for your family, time is an essential factor. ⏱️💼 But time also means preparation. When Drew Bledsoe was sidelined after a massive hit, despite having one of the largest quarterback franchise contracts in the NFL at that time (cash is trash), Tom Brady was ready and eager to step in—he also had time on his side. 🏅 Do you feel like time is on your side? Wherever you are today, now is the best time to get a handle on your portfolio. While many of us in Boston consider Tom Brady to be the eighth wonder of the world, it's actually compounding interest—and time is the secret ingredient to that equation. 📈🔑 #TimeManagement #BusinessWisdom #CashFlowDynasty #BostonMentors #CompoundingInterest #PreparationMeetsOpportunity #DynastyBuilding #TomBrady #BillBelichick #MentorshipMatters #FinancialFreedom #BostonStrong #HynesConventionCenter

The Ultimate NFL Draft Strategy: Avoiding Disappointments and Finding Franchise Stalwarts! Discover the key to building a successful NFL team through the draft. We analyze the track records of past picks and uncover the ratio of stars to busts. Join us as we explore the impact of drafting decisions on team success. #NFLDraftStrategy #BuildingAWinningTeam #FranchisePlayers #NFLDraftAnalysis #TeamSuccess #DraftPicks #FutureStars #BustOrBoom #NFLDraftHistory #BuildingAGreatTeam

The tussle to run the club recalls the business and legal maneuvers that saved the team from relocating 30 years ago this year as well as some machinations concerning transactions involving three of the state’s other major professional sports franchises. #LegalPerspectives #LegalAnalysis #Timberwolves #SportsBusinessLaw

Superb overview of sports finance today

The 25% Investment by Jim Ratcliffe in Manchester United for Sporting Control is similar to what we recently saw with the Dallas Mavericks. In that instance, Owner Mark Cuban sold 75% of the Dallas Mavericks to the Adelson Family, but retained Sporting Control of the Franchise. In my opinion this is a recent shift. Investors want to diversify and they view Franchise or Club Ownership as an important Asset Class. In the case of United, the Glazers are relinquishing Sporting Control after a decade of underperformance, where they inexplicably failed to employ and empower a Chief Football Officer. Unlike the Glazers, the Adelson’s are choosing not to engage on the Sporting Side from the beginning, in doing so they are entrusting Mark Cuban. The latter in my opinion is a questionable decision but one that I will follow with great interest.

The NFL is next. This week it was reported that private equity investors may soon be allowed to buy as much as 30% of NFL franchises. The team owners will present their findings in Nashville over three days starting May 20, during the second of four annual league meetings. I believe this is inevitable for a few reasons among others: 1) Valuations are growing. As teams get more expensive to purchase, there are few individuals or families who can purchase these assets. This results in outside funding to come into the picture. 2) Innovation and leadership expertise. Many private equity firms pride themselves on their operational expertise. These funds can bring a new perspective or methods to help increase engagement, fandom, and retention. 3) The league is expanding globally. There is a lot of institutional capital coming from different countries. As the league looks to grow its footprint, it might be beneficial to allow global investors to deploy capital in these franchises to help with that expansion and reach new demographics. Whether this is overall net positive or net negative for the league is TBD, but regardless it is coming. S/O to Randall Williams #privateequity #sportsmoney #sportsbusiness https://lnkd.in/duv2DtUJ