Gaston Seeks More Control of The Celtics

[Way Of The Ray <wayray@ix.netcom.com>]

                  Boston Herald
                  
                  Gaston shoots for more control of Celts
                  by Cosmo Macero Jr

                  Thursday, January 14, 1999

                  The majority owner of the Boston Celtics moved yesterday
                  to expand its hold on the team, offering to buy up 430,000
                  limited partnership units at $17 each, a substantial
                  premium over Tuesday's $14 closing price.

                  The stock buyback would give Castle Creek Partners LP,
                  controlled by Celtics Chairman Paul Gaston and his family,
                  about 20 percent of the Celtics' outstanding public
                  shares. The Gaston family already privately controls a
                  little over 50 percent of the team.

                  The move also stands to reduce administrative costs, since
                  many of the team's 80,000 or so shareholders hold just
                  single units as a token.

                  Celtics Chief Financial Officer Richard Pond said the
                  Gaston family wants a bigger stake in the team's public
                  ownership, and is betting share prices will rise as the
                  team's on-court and financial performance improves.

                  After the $17 tender offer was made, representing a 21
                  percent premium over Tuesday's $14 close, Celtics shares
                  jumped $2.50 to $16.50.

                 ``The Gaston family views this as a good investment
                  vehicle,'' Pond said of the buyback. ``They would
                  certainly become one of the largest owners of (publicly
                  traded) units.''

                  The short-term fiscal health of the Celtics and the entire
                  National Basketball Association remains in question,
                  however. League-wide, teams are hoping this season's
                  bitter player lockout and yesterday's retirement of NBA
                  superstar Michael Jordan won't keep fans away once games
                  begin next month.
 
                  By selling their Celtics partnership units, Pond said,
                  shareholders will not have to surrender bonds that are
                  linked to each unit. Each bond now pays a yearly dividend
                  of about $1.20.