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Steve Ballmer, The L.A. Clippers And The Basketball Bubble
Forbes ^ | 05/30/2014 | Nathan Vardi

Posted on 05/30/2014 10:44:26 AM PDT by SeekAndFind

The U.S. stock market is trading at all-time highs, the yields on U.S. government bonds are at eye-popping lows and the nation’s professional basketball teams are selling for more than most observers previously thought possible. That the U.S. economy shrank in the first quarter of the year is the disturbing backdrop for this stunning surge in asset prices—call it the basketball bubble.

Forbes first reported early on Thursday that former Microsoft CEO Steve Ballmer had submitted a $1.8 billion bid for the Los Angeles Clippers and that the team could go for $2 billion before all was said and done. By the end of the day Thursday, The Los Angeles Times had reported that Ballmer had submitted a winning $2 billion bid for the Clippers.

A $2 billion sale of the Clippers would be a record sale price for a basketball team. To get a sense of how far out of left field such price tag is, Forbes valued the Clippers at $575 million in January. Just three years ago, the big market Philadelphia 76ers, which like the Clippers are merely a tenant in the building in which they play basketball, sold for 2.5 times revenue. My Forbes colleague, Kurt Badenhausen, who knows more about basketball economics that just about anyone, has come up with 10 reasons why in 2014 the Clippers would fetch 15 times revenue. Those reasons range from new TV deals to a collective bargaining agreement that is more favorable to owners. There is also the issue of supply and demand. There may be only one chance in a lifetime to buy a basketball team in a city like Los Angeles, but there are also now a number of people willing today to pay more than $1 billion for it.

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Society
KEYWORDS: basketball; clippers; sterling; steveballmer

1 posted on 05/30/2014 10:44:26 AM PDT by SeekAndFind
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To: SeekAndFind

$2bn for a basketball team. insane. what’s the old saying about a fool and his money?


2 posted on 05/30/2014 10:48:51 AM PDT by ghost of stonewall jackson (An amateur built the Ark; professionals built the Titanic)
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To: SeekAndFind

I suspect if Ballmer pays that much, he knows he’s going to have to make a quick splash. And LeBron James is a free agent after this season....Therefore I thoroughly expect him to be playing for Ballmer next season.


3 posted on 05/30/2014 10:50:17 AM PDT by dfwgator
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To: SeekAndFind

Clippers ME ?

Clippers Vista ?


4 posted on 05/30/2014 10:52:17 AM PDT by molson209 (Blank)
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To: dfwgator

LA LeBron

there’s a name for ya....


5 posted on 05/30/2014 10:52:49 AM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: ghost of stonewall jackson

Most recent estimate by Forbes has him as the 35th richest man in the world with a net worth exceeding $20 Bullion.

$2 billion is less than 10% of his wealth. I think he’s wants to follow the footsteps of the other Microsoft Billionaire, Paul Allen who owns the Seattle Seahawks and the Portland Traiblazers.


6 posted on 05/30/2014 10:53:25 AM PDT by SeekAndFind
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To: molson209

Clippers XP. No more support.


7 posted on 05/30/2014 11:02:40 AM PDT by Yo-Yo (Is the /sarc tag really necessary?)
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To: SeekAndFind

Just a factoid: The Clippers were formally the Buffalo Braves and as you may know, the Buffalo Bills are now for sale. Hmmm. I don’t think the Bills will go for 2Bill though. Buffalo is not LA by any stretch. But just thought that was interesting.


8 posted on 05/30/2014 11:05:21 AM PDT by mc5cents (Pray for America)
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To: SeekAndFind
10 reasons why in 2014 the Clippers would fetch 15 times revenue.

#11 To be feted as a knight in shining armor saving minority maidens from the bigot dragon.

9 posted on 05/30/2014 11:05:51 AM PDT by Jeff Chandler (Conservatism is the political disposition of grown-ups.)
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To: ghost of stonewall jackson

He’s no fool……he’s in his 60s, has 20 bill, and wants a new toy…….


10 posted on 05/30/2014 11:08:37 AM PDT by C. Edmund Wright (Do NOT suffer fools gladly┬ůand message boards are full contact arenas)
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To: mc5cents
The Clippers were formally the Buffalo Braves
It's been a while since I watched Bob McAdoo pour in 45 points - what a player.
11 posted on 05/30/2014 11:12:39 AM PDT by dainbramaged (Don't tell me, I'll tell you.)
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To: ghost of stonewall jackson
A fool? Hardly. Steve Ballmer is a very calm, intelligent man.
12 posted on 05/30/2014 11:21:04 AM PDT by skeeter
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To: skeeter
A fool? Hardly. Steve Ballmer is a very calm, intelligent man.





13 posted on 05/30/2014 11:27:38 AM PDT by SeekAndFind
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To: SeekAndFind

The fix was in.
The NBA commissioner has as much hair as Steve Ballmer!


14 posted on 05/30/2014 11:45:46 AM PDT by minnesota_bound
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To: minnesota_bound

They will rename the team to the LA Clippys
http://piratesbc.com/images/News/Clippy2.gif


15 posted on 05/30/2014 11:51:40 AM PDT by minnesota_bound
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