Steve Ballmer to buy LA Clippers for $2 billion | Hacker News Reader

Steve Ballmer to buy LA Clippers for $2 billion

latimes.com

He should rename them to the LA Clippys.

(I know I'm risking downvotes by posting this. But c'mon.)

Hi there! It looks like you're trying to play basketball.

Hahaha let me buy you a drink sometime for this comment. It seriously made my day.

If the Clippers are worth $2 billion I can't even imagine what the Bulls, Lakers, or Heat would cost on the open market. I wonder if the increase in value over the past few decades relates to the fact that live sporting events drive such a huge premium in today's consume at your own pace media culture.

Lakers? More. Others? Not as much. The only other NBA team worth that kinda scratch is the Knicks. Ballmer WAY overpaid for a second tier team that happened to be in a prime market. He should seriously consider renaming and rebranding it as soon as possible.

second tier team

* Finished with the 4th best record in the league

* Made it to the 2nd round of the Western playoffs

* Have arguably the best PG in the game

* Have the biggest bandwagon next to Portland & GSW

The future is blindingly bright for these guys, and you want them to rebrand. Please

Yes, second tier team. For the vast majority of that franchise's existence, they have been synonymous with failure. They will never be as popular as the other team in that city, and they don't even pull in half the revenue the Lakers do. Given the team's negative history, not even considering the recent debacle that forced the sale of the team, they'd do well to come up with another brand that could have greater resonance with the local and national audience. They're almost certain to do a complete brand redesign anyway.

http://www.forbes.com/nba-valuations/list/

Week they certainly don't have history or prestige, which matters a lot in sports teams' longevity of popularity.

The Heat are the reigning dynasty with three of the best players in the league on one team surrounded by an all-star cast. They'd at least tie the Lakers in cost. But yeah, the Clippers are second-tier relative to some of the talent out there, I agree with that.

The Lakers have a ton of championships that have gotten them a MASSIVE following and they're in the largest market in the country. The Heat are nowhere remotely close to being as valuable. This isn't a matter of talent, it's a matter of history, brand loyalty, advertising, and all the money that comes with that.

I don't think the players matter much in the valuation of a franchise outside of winners = more money.

That's not how franchises are valued. Talent comes and goes.

Pretty sure the Celtics would bring in a decent number, given their storied past?

Sure, the Celtics too. The Celtics, Bulls, Lakers, and for the moment the Heat all have national followings. The Lakers and Celtics because of their dynasties, the Heat for their current success, and the Bulls because of their Jordan dynasty and because WGN broadcast their games nationally during that era.

Fairly wild given that I don't believe Staples Center is part of the deal. A lot of what drives prices up for sports teams (most evident in the NFL) is tying a Stadium along with the team.

I doubt the Heat and Bulls are as much as the Lakers/Clippers. Sports revenue is highly dependent on the size of the city's media market.

Live TV broadcasting rights are getting into the billions for some teams.

Actually, I wouldn't be surprised if the Clippers are the most valuable franchise in the NBA right now (or second to the Lakers). They're in a massive (albeit shared) market, have (part of) one of the best arenas in the league and are in the midst of a resurgence with some of the best players in the world. The Knicks and the Nets would also be way up there. The Heat, though successful and highly marketable, are in a relatively tiny market in Miami.

It's hard to say what any team is worth based on a transaction, since they're often bought as luxury goods and not as financial investments. Steve Ballmer wanted the team, so he bought it. I don't think he cares whether he can resell it for $2 billion.

Damn, I think it's one of the best return on investment in the sport industry! As the owner of the team do you get any share of the derived products? I bet it can be quite a nice amount if so, probably nothing compared to the TV contracts though. Question is, can the Clippers generate more than 2B for Steve? Is it a pure buzz/fame investment or real money making machine?

What's remarkable about this whole affair is that when all is said and done, one can step back and see the following:

A guy bought an NBA team for $12.5 million in 1981, made some horribly racist remarks in 2014, and then realized a 160x return on his investment because of those remarks and the attention they brought to the team.

Quite a world we live in, eh?

Well the valuation was always there, not sure his how his racist remarks helped realize the gains aside from forcing him to sell.

That analysis is deeply flawed. He didn't realize a 160x return because of those remarks. I highly doubt that those remarks increased the value of the team.

It's a 16.6% CAGR - very good, but less astronomical than looking at simply the multiple of the original purchase amount.

16.6% CAGR over 33 years is astronomical. Apple, one of the most successful corporations in history, has achieved an 18.95% CAGR since its launch in 1984. $100,000 invested in Apple in 1984 yields $18 million today. You can play with that here: http://forio.com/contour/examples/investment/investment.html

Achieving a double digit CAGR over multiple decades is extremely rare.

He would have made that money anyway. Actually he lost money. If he sold it later it might be worth even more.

Correlation does not imply causation

"Get on your feet" should be played with the lineups before each game.

Seriously, though, content is being bifurcated into "live, can't find/steal online" and everything else. The former is apparently worth a lot these days.

DEVELOPERS! DEVELOPERS! DEVELOPERS! DEVELOPERS! DEVELOPERS!

DRIBBLERS! DRIBBLERS! DRIBBLERS! DRIBBLERS! DRIBBLERS! haha ; o )

What an abject waste of money.

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