Steve Ballmer, The Clippers And The Basketball Bubble
Geege Schuman stashed this in Basketball
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.
While most of America struggles, the super rich fight each other economically to own things.
Money is literally no object to Ballmer, which is why he can afford to be so detached from reality.
Paul Allen's Seahawks are worth around $1 billion, for comparison.
At least Mr. Allen is philanthropic. Perhaps Mr. Ballmer will give away Clippers tickets to the indigent.
They used to give away Clippers tickets in the 1990s.
The Clippers are worth twice the Seahawks? Sheesh.