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?
Mar 31, 2015, 1:38 AM EDT
Also, is Kyle Korver human?
Mar 31, 2015, 12:30 AM EDT
He won’t replace Wesley Matthews, but he’s another body.
Mar 30, 2015, 11:45 PM EDT
A much-needed win for the Raptors.
Mar 30, 2015, 11:00 PM EDT
Gobert wouldn’t let it stand and blocked him right after.
Mar 30, 2015, 10:15 PM EDT
It was a frightening display of strength.
Mar 30, 2015, 9:30 PM EDT
A reminder of the Crash of old.
Mar 30, 2015, 8:45 PM EDT
Capela is making a name for himself.
Mar 30, 2015, 7:56 PM EDT
Rose underwent knee surgery in February.
Mar 30, 2015, 7:18 PM EDT
This is the opposite of a surprise.
Mar 30, 2015, 6:14 PM EDT
There were rumors he wanted the Sacramento GM job, but George Karl has the power there now.
Mar 30, 2015, 5:38 PM EDT
Also, is Willie Caulie-Stein a great fit next to DeMarcus Cousins?
Mar 30, 2015, 4:45 PM EDT
Cavaliers center is a star
Mar 30, 2015, 4:00 PM EDT
UNLV freshman likely headed for second round
Mar 30, 2015, 3:15 PM EDT
The top three are Golden State, Cleveland and San Antonio. Would you be shocked if any of them won the title?
StubHub sues Warriors, accuses Golden State of preventing StubHub-using fans from buying playoff tickets
Mar 30, 2015, 2:38 PM EDT
StubHub says Warriors permit resale through only Ticketmaster
Mar 30, 2015, 1:59 PM EDT
Rockets point guard to have surgery on wrist
Mar 30, 2015, 1:27 PM EDT
Phil Jackson disciple Craig Hodges now coaching Westchester Knicks
Mar 30, 2015, 12:49 PM EDT
Jordan made preseason debut at Washington High School, but at one point, it seemed Washington High alum Junior Bridgeman would be the big draw
Mar 30, 2015, 12:11 PM EDT
D.J. Augustin throws the alley-oop, and two Thunder players go for it. Westbrook won.
Mar 30, 2015, 11:33 AM EDT
Good decision to go pro, poor decision to end video how he did
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