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 EDT

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: Sacramento consultant Chris Mullin to take St. John’s head coaching job

    Mar 30, 2015, 6:14 PM EDT

    Chris Mullin AP

    There were rumors he wanted the Sacramento GM job, but George Karl has the power there now.

  2. PBT’s NBA Power Rankings: Cream rising to top as playoffs near

    Mar 30, 2015, 3:15 PM EDT

    Tim Duncan, Tony Parker, Marco Belinelli, Manu Ginobili Tim Duncan, Tony Parker, Marco Belinelli, Manu Ginobili

    The top three are Golden State, Cleveland and San Antonio. Would you be shocked if any of them won the title?

  3. Knicks are bad everywhere, fire D-League coach

    Mar 30, 2015, 1:27 PM EDT

    Foot Locker Three-Point Contest Getty Images

    Phil Jackson disciple Craig Hodges now coaching Westchester Knicks

  4. Michael Jordan played first Bulls "home" game at a high school (video)

    Mar 30, 2015, 12:49 PM EDT

    Michael Jordan, Dean Smith Michael Jordan, Dean Smith

    Jordan made preseason debut at Washington High School, but at one point, it seemed Washington High alum Junior Bridgeman would be the big draw

  5. Russell Westbrook dunks on teammate Enes Kanter

    Mar 30, 2015, 12:11 PM EDT

    Russell Westbtook, Enes Kanter Russell Westbtook, Enes Kanter

    D.J. Augustin throws the alley-oop, and two Thunder players go for it. Westbrook won.

  6. Texas’ Myles Turner, a likely lottery pick, declares for NBA draft with YouTube video

    Mar 30, 2015, 11:33 AM EDT

    Texas v Butler Getty Images

    Good decision to go pro, poor decision to end video how he did

Featured video

Where does Steve Nash rank all-time?
Top 10 NBA Player Searches
  1. H. Whiteside (6016)
  2. K. Martin (5617)
  3. K. Durant (5564)
  4. K. Lowry (5396)
  5. R. Rubio (5025)
  1. B. Knight (5024)
  2. D. Wade (5023)
  3. G. Monroe (4985)
  4. D. Rose (4963)
  5. P. George (4781)