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?
Aug 1, 2015, 8:00 PM EDT
That would be good news for the Spurs and bad news for the rest of the Western Conference.
Aug 1, 2015, 6:30 PM EDT
Noah spent most of last season limited by knee surgery.
Aug 1, 2015, 5:00 PM EDT
His $4.7 million salary for next season is unguaranteed.
Aug 1, 2015, 3:30 PM EDT
Paul is still in the running for a spot on the 2016 Olympic team.
Aug 1, 2015, 2:00 PM EDT
Will this lead to all 30 teams getting their own affiliates?
Hakeem Olajuwon and Dikembe Mutombo make surprise appearances for Team Africa in NBA exhibition game (VIDEO)
Aug 1, 2015, 12:30 PM EDT
Team Africa faced off against Team World in Johannesburg.
Aug 1, 2015, 11:00 AM EDT
Mbah a Moute signed a one-year deal with the Kings in July.
Aug 1, 2015, 9:30 AM EDT
Biyombo has worked with Hakeem Olajuwon this summer on post moves, other parts of his game.
Aug 1, 2015, 8:00 AM EDT
The Nets will be paying the price for their win-now era for a few years to come still.
Aug 1, 2015, 1:11 AM EDT
This is the right move, whether he decides to play in Rio or not.
Jul 31, 2015, 11:08 PM EDT
He looks like a guy who can live up to the No. 1 pick billing.
Jul 31, 2015, 10:26 PM EDT
Norris Cole is still looking for a bigger payday.
Jul 31, 2015, 9:31 PM EDT
Her credentials are unassailable.
Jul 31, 2015, 8:10 PM EDT
He is currently out on bond.
Jul 31, 2015, 7:15 PM EDT
Hill told the police he was “in a hurry.” I guess so.
Jul 31, 2015, 7:01 PM EDT
Neither guy is going to make a difference on the court for these teams. This was just moving some money around.
Jul 31, 2015, 5:46 PM EDT
Crabbe looked good in Las Vegas at Summer League.
Jul 31, 2015, 4:59 PM EDT
The Kings don’t really have the roster spot for him.
Jul 31, 2015, 4:11 PM EDT
Iowa Energy add Nicki Gross to coaching staff
Jul 31, 2015, 3:20 PM EDT
Will he accept the required tender?
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