Thursday, May 29, 2014

Pros/Cons Of Steve Ballmer Buying LA Clippers

News leaked out late today that former Microsoft CEO Steve Ballmer had made an offer to buy the LA Clippers for $2 billion. What are the pros and cons of this deal and will it ultimately be a winner deal for both the NBA and Ballmer? On the pros side, it's clear that this alleged deal will help put an end to the Donald Sterling fiasco that has made all NBA owners look bad. Another huge thing on the pros side is the massive selling price of $2 billion. Many people who value NBA franchises never thought the LA Clippers would sell for $1 billion, much less two. Nearly all of the cons of this proposed deal fall at the feet of Steve Ballmer. It's clear that he is willing to pay a much higher price for the Clippers than anyone else around would. In fact, I believe he is buying the team at more than twice what it is worth. While it's possible that Steve Ballmer will never recover his purchase price when and if he decides to sell the team in the future - it's also a fact that Mr. Ballmer can more than afford to write a $2 billion check and never miss that money.

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