New Celtics owner Bill Chisholm appeared on WEEI's 'The Greg Hill Show' on Tuesday.
Speaking on Tuesday morning on WEEI's 'The Greg Hill Show,' new Boston Celtics owner Bill Chisholm was asked about the team's future at TD Garden and if the team needed to own its own building in order to compete financially in the modern NBA.
Chisholm, who is on record as saying he likes TD Garden, said he didn't believe that owning an arena was a pre-requisite for organizational success, instead electing to focus on creating the best fan experience possible and the best experience for players.
However, he did leave the door open to owning a facility someday, saying it's something they would do if it was the best pathway to success.
Why this is even a story
1) Given the rising cost of player salaries and overall operating costs, teams need to bring in as much money as they can. That's a relatively simple premise.
2) Under the Celtics current arena deal, the team has a lease, meaning they have to make payouts to Delaware North. Anyone who has ever leased an apartment or a car knows that leased money is money you never get back.
3) Furthermore, as a result of the lease, the Celtics don't take in any revenue from concessions, parking or any other events held throughout the year. Thus, any big concerts at TD Garden? The Celtics don't see a dime of that money, and as noted by 98.5 The Sports Hub, the Celtics also see limited dollars from sponsorships and premium seating.
Again, a relatively simple premise: Leased money out, less money taken in = less overall revenue.
Boston Celtics lead owner and governor Bill Chisholm speaks during a press conference at Auerbach Center. Eric Canha-Imagn ImagesSo where do the Celtics get money from?
Well, the NBA's hefty television deals certainly help. It's somewhat complex, but according to Sportico, each team made $143 million last season from the NBA's national television deals, and that money will continue to skyrocket until the end of the deals in 2035-36. Each team is set to make more than $280 million a season by the end of the current television deal.
And then there's local television deals as well, which feed the machine, as well as ticket sales and merchandise, which is why Chisholm clearly talked about needing a great fan experience.
When will this come up again?
Well, the Celtics have a deal at TD Garden through 2036, so we are still a decade away from the team having those additional revenue streams as even a possibility.
However, well before then, Chisholm can explore the idea of the team possibly building and operating its own arena, or he can haggle with Delaware North over a new possible lease with different terms.
