Former MSFT CEO, Steve Ballmer, who earlier was said to have put in a $1.8 billion bid for the LA Clippers, is reported to have won the bidding war for the troubled sports team, and will shelve out a massive $2 billion: a record price for any NBA team, and four times the $550 million that was paid earlier this month for the Milwaukee Bucks. It is also the second highest price ever paid for any US sports team, only behind the $2.1 billion paid for the Dodgers in 2012.
From the LA Times [2]:
Former Microsoft chief executive Steve Ballmer won a frenetic bidding war for ownership of the Los Angeles Clippers, with his $2-billion offer setting a record price for an NBA team, The Times has learned. Ballmer, who was chief executive of Microsoft for 14 years, was chosen over competitors that included Los Angeles-based investors Tony Ressler and Steve Karsh and a group that included David Geffen and executives from the Guggenheim Group, the Chicago-based owner of the Los Angeles Dodgers.
A person with knowledge of the negotiations said the Geffen group bid $1.6 billion and Ressler at $1.2 billion.
The sale price is almost four times the highest previous NBA franchise sale price -- the $550 million paid earlier this month for the Milwaukee Bucks. It is second only to the Dodgers' 2012 sale for $2.1 billion as the highest price for any sports team in North America.
The prospective sale by Clippers co-owner Shelly Sterling comes five days ahead of an NBA hearing to oust her family from ownership following a controversy in which Donald Sterling insulted African-Americans in a secret audio recording.
There appears to be one contingency: the approval of Donald Sterlin whose rant caused the forced transaction in the first place:
The tentative deal still must receive the blessing of her husband, Donald Sterling, who has waxed and waned on the question of whether he would allow his wife to sell the team he has controlled for more than three decades. The deal also needs the eventual approval of 29 other NBA owners, but is expected to clear that hurdle as long as Ballmer reaffirms his pledge to keep the team in Los Angeles and not move it to Seattle, where he lives.
As for Ballmer, he will be the proud owner of an NBA franchise for a measly 10% of his net worth:
Ballmer, 58, left the software giant in February and has an estimated net worth of $20 billion. Unlike other bidders, he did not immediately seek out partners for the purchase of the Clippers.
Ballmer last year joined a group, led by hedge fund manager Chris Hansen, to bid on the Sacramento Kings, intending to move the team to Seattle. NBA owners voted to reject the proposed move.
The businessman said in a recent interview that he had no intention of moving the Clippers. He said that the high valuations for the team only made sense in Los Angeles -- the second biggest media market in the country.
Oh well, nothing like a little bidding frenzy among billionaires to change one's mind about what a "fair valuation" is. Some of the more cynically inclined are already wondering whether the Clippers will be instantly worth $3 billion the moment Ballmer announces his retirement.
In other news: welcome to the basket bubble.
Finally, who else can't wait for the Clippys get pumped to this ritual before every game?