Skip to content

Report: Ballmer’s $2 billion Clippers offer nearly double what Bank of America valued team at

Jul 23, 2014, 8:40 PM EST

Steve Ballmer Steve Ballmer

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?

Latest Posts
  1. Report: Executives have proposed moving up NBA trade deadline

    Jan 28, 2015, 9:59 AM EST

    Dallas Mavericks v New Orleans Pelicans Getty Images

    It probably would matter less than before, but why change the date?

  2. Report: Potential first rounder Robert Upshaw could sign in D-League after Washington dismissal

    Jan 28, 2015, 9:22 AM EST

    Robert Upshaw, Gary Payton II AP

    Upshaw reportedly failed multiple drug tests at Washington and Fresno State

  3. Stephen Curry had a great passing night (VIDEO)

    Jan 28, 2015, 8:30 AM EST

    Chicago Bulls v Golden State Warriors Getty Images

    He can do more than just shoot the rock.

  4. Report: Bucks to sign Kenyon Martin through end of season

    Jan 28, 2015, 8:00 AM EST

    Kenyon Martin, Chris Bosh AP

    They like his veteran leadership on a young team.

  5. Report: Pistons looking into Norris Cole trade

    Jan 27, 2015, 11:33 PM EST

    Miami Heat v Detroit Pistons Getty Images

    Hornets also reportedly had interest in Heat point guard

  6. It’s official: Zach LaVine, Greek Freak Antetokounmpo headline All-Star Dunk Contest

    Jan 27, 2015, 7:23 PM EST

    Milwaukee Bucks v Los Angeles Clippers Getty Images

    The best news may be the return to the classic dunk contest format.

  7. LaMarcus Aldridge says he’s back for rest of season

    Jan 27, 2015, 6:50 PM EST

    LaMarcus Aldridge AP

    Barring any setbacks with hand injury

  8. Paul Pierce on why trash talk is down in league: NBA2K

    Jan 27, 2015, 5:15 PM EST

    NBA 2K15 promo

    My gaming experience suggests you talk a lot of trash to the guy next to you.

  9. Wisconsin Governor plans for $220 million in state bonds to help pay for new Milwaukee arena

    Jan 27, 2015, 3:30 PM EST

    Scott Walker Getty Images

    It essentially uses increased jock tax revenue to pay off the bonds.

  10. Iman Shumpert mocks his own failed crossover (VIDEO)

    Jan 27, 2015, 2:40 PM EST

    Oklahoma City Thunder v Cleveland Cavaliers Getty Images

    Shumpert dribbled it off his foot against the Thunder, then tweeted the clip.

  11. Lakers’ players trying to adjust to Byron Scott’s random rotations

    Jan 27, 2015, 1:55 PM EST

    Byron Scott AP

    Players like a routine, a rhythm to games, and the Lakers are chaos theory.

Featured video

Stephen Curry leads NBA MVP race mid-season
Top 10 NBA Player Searches
  1. K. Bryant (7669)
  2. H. Whiteside (7136)
  3. R. Rubio (6600)
  4. L. Aldridge (6401)
  5. N. Batum (6348)
  1. K. Martin (6195)
  2. J. Noah (6051)
  3. K. Walker (5974)
  4. C. Anthony (5848)
  5. D. Howard (5585)