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?
Sep 1, 2015, 6:01 PM EDT
He’s a 6’7″ combo guard with a lot of potential
Sep 1, 2015, 4:30 PM EDT
Well, that’s one.
Sep 1, 2015, 3:35 PM EDT
It’s not just baseball and boxing anymore.
Sep 1, 2015, 2:46 PM EDT
Miami is a long shot to land him, but you can bet Pat Riley will have them positioned for a run.
Sep 1, 2015, 2:19 PM EDT
Lots of pump fakes. Lots and lots of pump fakes.
Sep 1, 2015, 1:28 PM EDT
It’s an old Moses Malone trick.
Sep 1, 2015, 12:46 PM EDT
He’s healthy, that’s a start.
Sep 1, 2015, 11:45 AM EDT
Williams signed a two-year deal with the Mavs in July.
Sep 1, 2015, 11:00 AM EDT
Whittington played for the Heat at Summer League.
Sep 1, 2015, 10:15 AM EDT
Mutombo played four and a half years in Atlanta.
Sep 1, 2015, 9:30 AM EDT
Stojakovic had been rumored for several weeks to be joining the Kings.
Sep 1, 2015, 9:00 AM EDT
His third time in seven years changing agents.
Sep 1, 2015, 8:30 AM EDT
Wade would make Patches O’Houlihan proud.
Sep 1, 2015, 8:00 AM EDT
If I were a betting man, I’d expect there’s a better than 50/50 chance a Zeller deal gets done.
Aug 31, 2015, 11:09 PM EDT
Does Harden even make the all left-handed starting five?
Aug 31, 2015, 8:31 PM EDT
We have some Riley Curry news. You know you want to click now.
Aug 31, 2015, 7:15 PM EDT
Charlie Westbrook reportedly signs with Bucks
Aug 31, 2015, 6:15 PM EDT
The Clippers add more depth. It’s been a good offseason for Doc Rivers.
Aug 31, 2015, 5:35 PM EDT
He is a very good pick-and-roll guard with great court vision.
Aug 31, 2015, 5:02 PM EDT
The Suns have no leverage now even if they wanted to move him, and apparently they don’t.
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