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 18, 2014, 11:00 AM EDT
After signing Glenn Robinson III, Minnesota has too many guaranteed contracts
Sep 18, 2014, 10:00 AM EDT
Sep 18, 2014, 9:30 AM EDT
Last season, Celtics traded Crawford to Warriors, who were unsatisfied with his play
Sep 18, 2014, 8:30 AM EDT
Bulls center didn’t fare quite as well at White Sox game
Sep 18, 2014, 8:00 AM EDT
“Everybody who knows Danny knows that he’s a good person.” —Steve Kerr on Danny Ferry
Sep 18, 2014, 12:15 AM EDT
No Robert Horry, no Igor Kokoskov
Sep 17, 2014, 11:15 PM EDT
Milwaukee will likely waive former Temple center before season
Sep 17, 2014, 10:15 PM EDT
Clippers rushed to upgrade from Hollins as backup center, the role Hollins will likely hold in Sacramento
Sep 17, 2014, 9:25 PM EDT
Sanchez played for St. John’s, Dominican Republic national team
Sep 17, 2014, 8:30 PM EDT
Miami also hires Chris Quinn promotes David Fizdale
Sep 17, 2014, 7:35 PM EDT
Asik and Davis could be one of the NBA’s best defensive front lines.
Sep 17, 2014, 6:48 PM EDT
Brooklyn needs someone behind Brook Lopez and Mason Plumlee
Sep 17, 2014, 5:55 PM EDT
This is a killer addition.
Sep 17, 2014, 4:59 PM EDT
Sep 17, 2014, 4:12 PM EDT
Five games is the standard marijuana suspension, and you have to test positive three separate times to earn it.
Sep 17, 2014, 3:26 PM EDT
Jennings only shot 52 percent around the rim last year, maybe the muscle helps. Maybe.
Sep 17, 2014, 2:55 PM EDT
Chris Bosh is taller than Ellen DeGeneres, which leads to much humor. I guess.
Sep 17, 2014, 1:59 PM EDT
His veteran, playoff-tested presence will be big on this team.
Sep 17, 2014, 1:19 PM EDT
This is all we want to see out of the Timberwolves anyway.
Sep 17, 2014, 1:00 PM EDT
No. Just… no.
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