Skip to comments.Steve Ballmer, The L.A. Clippers And The Basketball Bubble
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 nations 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 pricescall 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 ...
$2bn for a basketball team. insane. what’s the old saying about a fool and his money?
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.
Clippers ME ?
Clippers Vista ?
there’s a name for ya....
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.
Clippers XP. No more support.
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.
#11 To be feted as a knight in shining armor saving minority maidens from the bigot dragon.
He’s no fool he’s in his 60s, has 20 bill, and wants a new toy .
The fix was in.
The NBA commissioner has as much hair as Steve Ballmer!
They will rename the team to the LA Clippys