Steve Ballmer at the Microsoft CEO Summit 2013. (Microsoft Photo).
Steve Ballmer at the Microsoft CEO Summit 2013. (Microsoft Photo).

Newsflash: Steve Ballmer is paying too much for the Los Angeles Clippers.

ESPN obtained financial documents that reveal expected 2014 revenue for the Clippers, a team that Ballmer is set to purchase for $2 billion.

The “bid book,” which was used by current owner Shelly Sterling as an exhibit in court, reveals that the Clippers should make $164.9 million in revenue for 2014 before accounting for player payroll costs — that’s about 12 times less than what Ballmer is willing to pay.

According to ESPN, no owner has ever paid five times more than a team’s total revenues. For context, the last NBA team to be sold was the Milwaukee Bucks, which went for $550 million in April.

So, yes, Ballmer is throwing down an excessive amount of money to own the Clippers.

Bank of America experts, which compiled the documents, pegged the Clippers to be valued at between $1 billion and $1.3 billion. That’s about where two other investor groups — which bid $1.2 billion and $1.6 billion for the team — were at.

Meanwhile today, Donald Sterling filed a lawsuit against the NBA, its commissioner Adam Sterling, and his wife Shelly for violation of corporate law and fraud. Sterling is claiming that he has sole ownership rights to the Clippers and is trying to block the $2 billion sale to Ballmer.

Comments

  • Just Wondering

    Underpaying UNTIL he sells for $30billion 20 years form now. Mark this comment.

    • BR

      Is that taking into account the inevitable hyperinflation we’re going to experience?

  • microserf

    Well at least my years of hard work at Microsoft helped contribute a higher mission: namely, Steve B’s ability to one day wildly overpay for a billionaire’s plaything.

  • carlkmcdaniel

    like
    Jacqueline implied I’m taken by surprise that a mom can earn $8130 in 1 month
    on the computer . see post C­a­s­h­f­i­g­.­C­O­M­

  • Observer

    Aquantive, Yammer, Nokia, Skye, Clippers. What do they have in common? Steve Ballmer overpaid for all of them. Not a big surprise, is this?

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