Clippers Will Bring $2 Billion

[Rupert Pupkin]

The Clippers were valued at around $600 million just a year ago. Now it looks like the sale price will end up being around $2 billion.

http://finance.yahoo.com/blogs/break...194651227.html

[jms62]

Originally Posted by Rupert Pupkin

The Clippers were valued at around $600 million just a year ago. Now it looks like the sale price will end up being around $2 billion.

http://finance.yahoo.com/blogs/break...194651227.html

2 Billion is preposterous given Yankees valued at 2.5 Bil and Cowboys at 2.3

http://www.forbes.com/nfl-valuations/

http://www.forbes.com/sites/mikeozan...t-2-5-billion/

[hi_im_god]

The only publicly disclosed bid.

http://www.latimes.com/sports/clippe...529-story.html

[Danzig]

Originally Posted by jms62

2 Billion is preposterous given Yankees valued at 2.5 Bil and Cowboys at 2.3

http://www.forbes.com/nfl-valuations/

http://www.forbes.com/sites/mikeozan...t-2-5-billion/

well, i can see setting a preposterous figure when someone is making you sell and you don't want to.

[Pants II]

1.5-1.8

Dre-eminem-50 cent-ice cube buy the clippers

[ateamstupid]

Originally Posted by Pants II

1.5-1.8

Dre-eminem-50 cent-ice cube buy the clippers

Clippas With Attitude

[Rupert Pupkin]

Originally Posted by jms62

2 Billion is preposterous given Yankees valued at 2.5 Bil and Cowboys at 2.3

http://www.forbes.com/nfl-valuations/

http://www.forbes.com/sites/mikeozan...t-2-5-billion/

I agree that it is preposterous. But wealthy people will often times way overpay for something they really want. Steve Balmer is worth $20 billion. It's not going to change his life whether he pays $1.3 billion vs $2 billion.

The $2 billion figure could be a little high but I think it will be in that ballpark. It could end up being more in the $1.7-$1.8 billion range. The price is obviously always higher when you have a bidding war (just like at the horse sales).

[Cannon Shell]

Owners NEVER lose money on pro sports franchises. Whatever they pay won't really matter because teams always appreciate in value.

Kind of makes you think the players union got played during the last lockout when so many owners were crying that they were losing money. The Bucks sold for $550,000,000 with a decrepit arena, no stars in the countries 39th largest market.

[pointman]

$2 Billion pending approval

http://nypost.com/2014/05/29/steve-b...for-2-billion/

What does this make the Yankees or Cowboys worth?

[hi_im_god]

Originally Posted by Cannon Shell

Owners NEVER lose money on pro sports franchises. Whatever they pay won't really matter because teams always appreciate in value.

Kind of makes you think the players union got played during the last lockout when so many owners were crying that they were losing money. The Bucks sold for $550,000,000 with a decrepit arena, no stars in the countries 39th largest market.

A large part of what has driven the price of any franchise's value up has been the preposterous prices cable networks will pay for television rights. We might be seeing tops reached on those and if they stabilize, then so will the value of the franchise.

In L.A., Time Warner paid $7 billion for 25 years of rights to broadcast the Dodgers. They have, so far, been unable to resell the network they created to carry the games to any other provider. They are allegedly asking about $4/subscriber. They probably need close to that to reach break even on the deal they signed.

Absent a deal, most of L.A. can't watch the Dodgers. If your local bar isn't in an area served by Time Warner, you can't go there to watch either.

Dodger ownership gets their sack if cash regardless but they have to think about what happens to a fan base that can't watch any games outside the stadium. And Time Warner may become the cautionary tale for other networks if they wind up taking a loss.

The Clippers current TV contract expires in 2016.

[Dawgswin]

Originally Posted by Cannon Shell

Owners NEVER lose money on pro sports franchises. Whatever they pay won't really matter because teams always appreciate in value.

Kind of makes you think the players union got played during the last lockout when so many owners were crying that they were losing money. The Bucks sold for $550,000,000 with a decrepit arena, no stars in the countries 39th largest market.

Don't forget that almost ALWAYS franchise ownership brings with it lucrative real estate deals. Gretzyky made millions owning (partially) the Coyotes from the development around the new arena, all while the team stunk up the NHL and bemoaned to the league how much money they were losing.

Most owners are in the game solely for the real estate development opportunities and kickbacks. In many cases it behooves them to have the team lose money.

[Cannon Shell]

Originally Posted by Dawgswin

Don't forget that almost ALWAYS franchise ownership brings with it lucrative real estate deals. Gretzyky made millions owning (partially) the Coyotes from the development around the new arena, all while the team stunk up the NHL and bemoaned to the league how much money they were losing.

Most owners are in the game solely for the real estate development opportunities and kickbacks. In many cases it behooves them to have the team lose money.

But they dont actually lose money. It is simply untrue. Not only are they profiting wildly on the intrinsic value of the teams they make money on a day to day basis as well. Between TV money, sponsorship dollars, merchandising, and in some leagues revenue sharing and luxury tax distributions, etc they are all making money.