Make confident decisions on and off the court
When William “Bill” Chisholm set out to acquire the Boston Celtics, he wasn’t just buying a team—he was stepping into the glare of the sports world’s brightest spotlight. The deal was enormous: a $6.1 billion price tag, a consortium of investors, and the pressure of following a championship season. The deal had to be airtight and completed fast.
Behind the scenes, the pressure was palpable. Bill’s advisors, the KPMG Deal Advisory team, and legal counsel worked in lockstep—often late into the night, sometimes from opposite coasts. For Mark Hughes, KPMG lead partner, the challenge was as much about people as numbers: “We had to make sure Bill and his team were comfortable with what they were paying, and that there were no hidden risks lurking in the details.”
Seasonality, volatile cash flow, and unique NBA rules create financial complexity
Owning an NBA franchise isn’t like running any other business. Cash flows during a year can fluctuate significantly, driven by ticket sales, luxury tax and revenue share payments, and player compensation, all of which include complex up-front payment schedules. These dynamics create significant working capital swings, especially in the offseason when payroll obligations persist but revenue slows to a trickle. Understanding this was critical to help make sure Bill had sufficient liquidity to fund operations post close. In addition, he was stepping into the aftermath of a championship season, with the sports world watching.
“The Celtics winning the championship the year before created a unique dynamic," recalls Hunter Rice, a managing director in the KPMG Deal Advisory practice. "We had to assess what impact that had on the prior-year financials, and what it might look like if they won again—or didn’t."
The KPMG team built models to forecast cash flow, helping ensure Bill’s group had the liquidity needed for the initial six months post close and beyond. Leveraging their deep experience in the sports industry, KPMG provided rapid, targeted analysis of the complex financial arrangements unique to NBA franchises, which are often impacted by cash flow volatility and league-imposed financing limits. KPMG was able to get up to speed quickly. They interpreted recent threshold changes to team credit facilities, clarifying what could be drawn down to support the Celtics’ ongoing operations.
“There’s a lot of seasonality in owning an NBA franchise,” said Alex Beale, KPMG Financial Diligence director. “We had to model for every scenario, so there were no surprises for Bill post close.”
