Steve Ballmer makes $2 billion winning bid to purchase the Los Angeles Clippers
Former Microsoft CEO Steve Ballmer has won the bidding war after offering $2 billion to purchase the Los Angeles Clippers.
Former Microsoft CEO Steve Ballmer has won the bidding war after offering $2 billion to purchase the Los Angeles Clippers. Donald Sterling is being pressured to sell the team after he was banned from the NBA due to racist remarks he made leaked to the public.
If the bid is accepted, the Sterlings will make a profit of 15,900 percent after selling the team. Sterling originally purchased the Clippers for $12.5 million in 1981, according to the Los Angeles Times. The bid is also four times more than the highest NBA purchase of $550 million paid earlier this month for the Milwaukee Bucks.
With the previous purchase being so much less, how did the league come up with a $2 billion purchase price? How can Ballmer truly make money off of the Los Angeles Clippers after such a huge investment?
Geoffrey Rapp, Co-Editor, The Sports Law Blog; Harold A. Anderson Professor of Law and Values, The University of Toledo
Mike Ozanian, Managing Editor, Forbes Sports Money