Scoop: Boston Celtics sale may test NBA's private equity rules

• That is not allowed by the NBA, per regulations first established in 2021.
• Instead, a PE fund can have the lesser of 20% or below the percentage held by the control owner (who must hold a 15% minimum stake).

Behind the scenes: There seem to be two options for Chisholm, whose deal was announced before it was fully financed.

• One is that he pulls in so many new investors that Sixth Street's full check is no longer needed — and the firm allows itself to fall below Chisholm in the cap table. This remains possible before other owners vote in June, particularly if some existing minority investors roll over their stakes and/or some of the losing bidders join with Chisholm.
• The other is that Chisholm requests some sort of waiver from the league, guessing that other owners won't reject a deal with so high a price tag.

• Spokespeople for Chisholm's group, Sixth Street, and the NBA all declined comment.

The bottom line: Private equity firms not involved with the Celtics will pay very close attention to how this plays out.

• If Chisholm and Sixth Street do get a waiver, they'd be emboldened to try something similar — and maybe even believe there's legal precedent to do so.