The NBA offseason is officially underway, and the Boston Celtics have quickly become a focal point. Just one day after reports surfaced of an agreement to trade Jrue Holiday to the Portland Trail Blazers, the Celtics have reportedly reached terms on a three-team trade that will send Kristaps Porziņģis to the Atlanta Hawks.
Only two summers ago, Holiday and Porziņģis were significant additions for a Celtics team determined to finally overcome past hurdles and secure their first championship since 2008. In their initial season together, they played a crucial role in achieving this goal, as the Celtics defeated the Dallas Mavericks to win the 2024 Finals.
Now, they are departing the team. The question arises: Why would the Celtics, who won over 60 games in each of the past two seasons, begin dismantling a championship-winning core so soon this summer?
Significant Financial Considerations
From the moment the Celtics acquired Holiday and Porziņģis in 2023 and subsequently signed Jaylen Brown, Jayson Tatum, and Derrick White to lucrative extensions, they understood they had a limited two-year window before facing substantial financial repercussions.
Before these recent trades, nearly every major contributor from last season`s championship roster was under contract for the upcoming season, with the exceptions being Al Horford and Luke Kornet. Even without extending those two, the Celtics already had over $227 million committed in guaranteed contracts. Due to the NBA`s luxury tax penalties, retaining the full roster would have incurred a total cost exceeding $500 million.
Reports circulated even before last season concluded that the Celtics planned to reduce salary this summer to avoid assembling the most expensive team in league history.
By trading Holiday for Anfernee Simons and Porziņģis for Georges Niang, the Celtics have reportedly shed nearly $28 million in salary, moving below the punitive second apron of the luxury tax. According to cap expert Yossi Gozlan, the total projected cost for the Celtics` roster next season (including salary and tax payments), barring further moves, has dropped from $512 million to $274 million.
Avoiding Basketball Penalties
While saving money was a primary objective this summer, a more significant benefit of dropping below the second apron of the luxury tax is the avoidance of further basketball-related penalties.
“It`s not just the luxury-tax bill, it`s the basketball penalties,” former owner Wyc Grousbeck stated in March. “The new CBA was designed by the league to prevent teams from excessive spending, as they realized simply penalizing wallets wasn`t enough because fans would assume owners could simply absorb the cost – whether it`s $500 million per year or whatever it is.”
“The basketball penalties mean it`s even more crucial now for your general manager to be exceptionally skilled and fortunate because you must navigate these rules. You cannot consistently remain in the second apron,” Grousbeck continued. “Nobody will. I predict for the next 40 years under this CBA, no team will stay in the second apron for more than two consecutive years.”
The Celtics had been above the second apron for the past two seasons and had already faced restrictions. Per Bobby Marks, these restrictions included limitations such as the inability to:
- Aggregate contracts when making a trade.
- Utilize more than 100% of the traded player exception.
- Include cash in trades.
- Use a previously existing trade exception.
- Sign a player waived with a salary of at least $14.1 million.
Because the Celtics exceeded the second apron this season, their 2032 first-round draft pick was frozen, preventing them from trading it. Had they remained above the second apron next season, their 2033 first-round pick would also have become frozen.
Now that the Celtics are below the second apron, none of the aforementioned restrictions, such as the inability to aggregate contracts in a trade, apply to them. This provides President of Basketball Operations Brad Stevens significantly greater flexibility for the remainder of the summer and leading into next season.
Impact of Tatum`s Achilles Injury
Late in Game 4 of the Celtics` second-round series against the New York Knicks, Jayson Tatum collapsed while pursuing a loose ball and clutched his right leg. Within 24 hours, he had undergone surgery to repair a torn right Achilles tendon. A few days later, the Celtics were eliminated from the playoffs.
The Celtics have not released an official timeline for Tatum`s recovery, but he is expected to miss the majority, if not all, of next season. Tatum`s injury not only reinforced the necessity for the team to get under the second apron this summer but also significantly altered Stevens` short- and long-term planning.
If Tatum had been healthy, the summer plan would likely have been more straightforward: get under the second apron while keeping the team as competitive as possible. In that scenario, they might have traded only one of Holiday or Porziņģis and found alternative methods to save money.
Tatum`s injury made moving on from both Holiday and Porziņģis an easier decision and opened up a wider range of possibilities. The most dramatic potential path involves a more significant roster overhaul, potentially taking a “gap year” in 2025-26 to aim for a high pick in the 2026 NBA Draft and clear salary cap space for a full roster reset when Tatum is expected to be healthy again in 2026-27.
Following this line of thought, it`s noteworthy that Shams Charania reported late on Tuesday that rival teams are inquiring with the Celtics about the availability of Jaylen Brown and Derrick White. Per Charania, the Celtics have set a “high price threshold” for both players and would prefer to retain them, but they are receiving “massive offers.”
Whether another team can present an offer overwhelming enough for the Celtics to part with one of their remaining stars remains to be seen.
The Influence of a New Owner
Shortly after securing the championship last season, the Celtics and the Grousbeck family made a surprising announcement: the team was up for sale. In March, 23 years after the Grousbecks purchased the franchise for $360 million, they sold it to Massachusetts native Bill Chisholm for a then-record-breaking price of $6.1 billion.
“I bleed green,” Chisholm told ESPN after the sale. “I love the Celtics. When this opportunity arose, I couldn`t let it pass. Wyc [Grousbeck] has managed this franchise incredibly well. So why would you disrupt that? The team is in a great position right now, and I am very sensitive to that. Wyc, Brad [Stevens], and Joe [Mazzulla] have done amazing work, and that`s all positive momentum we want to continue.”
“My goal is to win and raise banners,” Chisholm continued. “That applies both in the near term and the long term. I`ve had several discussions with Brad, and we`ve focused on aligning our objectives and extending the competitive window for this team.”
Chisholm`s public statements have been supportive, but he is also pragmatic. The Celtics are not a legitimate title contender without Tatum, and there is little logical reason to spend over $500 million and incur additional basketball penalties to maintain a team with minimal championship aspirations, especially immediately after Chisholm (and his partners) invested over $6 billion to purchase the franchise.
The key question now is whether Chisholm will push for even more cost reductions, even though the Celtics are already below the second apron. Currently, they are approximately $7.4 million over the first apron and $15 million over the luxury tax, including their incoming first-round pick. They are set to select 28th overall in the 2025 NBA Draft on Wednesday.
Trading Sam Hauser, who earns $10 million, would offer a relatively simple way to shed additional salary. However, any moves beyond that would either be minor or have significant franchise-altering implications. Predicting Brad Stevens` next move is typically difficult, but it feels plausible that he may still have a few surprises in store.
Jasper Hawthorne