Jul 23, 2014, 8:40 PM EDT
If you’re Steve Ballmer and you want to make sure you win a bid for the Los Angeles Clippers, what is 10 percent of your net worth?
That’s what Ballmer agreed to do when he bid $2 billion for the Clippers in a deal agreed to by Shelly Sterling and the lawyers for the Sterling family trust. (A sale Donald Sterling is trying to blow up in multiple court cases.)
That $2 billion bid was way, way more than what the “bid book” on the team put together by Bank of America valued the team at, reports Ramona Shelburne and Darren Rovell of ESPN, who got their hands on the bid book.
Ballmer’s $2 billion final bid is 12.1 times the expected 2014 revenues of the team, according to the numbers given to the bidders by Bank of America, which conducted the sale on behalf of the Sterling trust. The document was introduced into court Tuesday and subsequently obtained by ESPN. A person with knowledge of the sale confirmed that bidders were given these documents….
“No team in the history of sports has sold for six times total revenues, so that should give you an idea of how crazy this purchase price is,” said a sports banker who was not involved in the transaction.
Even according to Bank of America, no team has been purchased for more than five times its total revenues. Before the bidding began, Bank of America valued the Clippers between $1 billion and $1.3 billion, double the $550 million sale price of the Milwaukee Bucks, which had set a league record for a sale price just months before.
Clippers interim CEO Dick Parsons (the guy the NBA put in charge) said on the stand in the Sterling v. Sterling probate case on Tuesday that if the Ballmer sale deal goes away, he doesn’t think they will get as much the next time around.
Ballmer didn’t go bargain shopping, but he (like other recent buyers of NBA franchises) are betting on a more owner-friendly CBA, a new more lucrative television deal, and the general growth in popularity of the league, to make up that money over time.
Plus, if you really want something and you can afford it, why not? That’s how I feel about the occasional nice single malt Scotch from the Highlands. If Ballmer feels the same way about the Clippers, why shouldn’t he spend?
Apr 18, 2015, 5:00 PM EDT
The basketball was ugly, but this still may be a very competitive series.
Apr 18, 2015, 3:37 PM EDT
Pierce backed up his talk with plenty of action.
Apr 18, 2015, 2:00 PM EDT
They’re still expected to play around 32 minutes each.
Apr 18, 2015, 1:18 PM EDT
Ujiri cusses at a playoff pep rally for the second straight year.
Q&A: Corey Brewer on trade from Timberwolves, his 51-point game, Harden’s MVP case, Rockets vs. Mavericks
Apr 18, 2015, 12:30 PM EDT
Brewer has been a key member of the rotation for the two-seeded Rockets.
Apr 18, 2015, 11:00 AM EDT
Every playoff series is predicted.
Apr 18, 2015, 9:30 AM EDT
How do you feel about a lot of hack-a-Jordan for six or seven games?
Apr 18, 2015, 8:00 AM EDT
With most 2014 conference-finalists eliminated, Warriors are clear favorite
Apr 18, 2015, 12:30 AM EDT
Their rivalry goes back until the Dwight Howard free agent recruitment. If not earlier.
Apr 17, 2015, 11:30 PM EDT
The winner in 7 games will be …
Apr 17, 2015, 10:30 PM EDT
Cuban also says of Houston: “that’s not a very good team over there.”
Apr 17, 2015, 9:30 PM EDT
Can Brooklyn win a game?
Sounds like Pacers president Larry Bird, head coach Frank Vogel don’t want Roy Hibbert back next year
Apr 17, 2015, 8:30 PM EDT
Hibbert has a player option for $15.5 million next season.
Apr 17, 2015, 7:30 PM EDT
Three PBT writers pick the Warrior to beat the Cavaliers in the Finals.
Apr 17, 2015, 6:45 PM EDT
Wesley Matthews. Arron Afflalo. Nicolas Batum. C.J. McCollum. Chris Kaman. Mike Conley. Tony Allen. All injured.
Apr 17, 2015, 6:00 PM EDT
Projection: 2016-17: $89 million; 2017-18: $108 million.
Apr 17, 2015, 5:15 PM EDT
I just think Doc Rivers the GM has tied the hands of Doc Rivers the coach too much — the Spurs versatility and depth gives Gregg Popovich more options.
Apr 17, 2015, 4:38 PM EDT
He is expected to make a full recovery.
Apr 17, 2015, 3:59 PM EDT
It’s great to see Anthony Davis on the playoff stage for the first time. Even if it doesn’t last long.
Apr 17, 2015, 3:15 PM EDT
Jazz, Bulls, Spurs, Celtics lose
- Paul Pierce leads Wizards to overtime Game 1 win over Raptors 1
- Q&A: Corey Brewer on trade from Timberwolves, his 51-point game, Harden’s MVP case, Rockets vs. Mavericks 0
- PBT First Round Playoff Previews: Los Angeles Clippers vs. San Antonio Spurs 8
- Why the 2015 NBA playoffs feel wide open – but probably shouldn’t 4
- PBT Extra: Houston, Dallas simply do not like each other 3
- Sounds like Pacers president Larry Bird, head coach Frank Vogel don’t want Roy Hibbert back next year 24
- PBT staff playoff predictions: Lots of Golden State love from us 1
- PBT Extra: Injuries make Grizzlies, Trail Blazers series hard to predict 4