You should read that article more carefully. It doesn't say what you think it does. It says the exact opposite - that NBA franchises aren't necessarily economic decisions, and he paid that simply because he wanted a toy in LA, and that's what it cost to buy them. In other words, that's what they were worth because there was a buyer willing to pay. No one wanted to pay $2 billion for the Milwaukee Bucks; thus, they weren't worth that. Beyond that, you could just look at what the people who actually do this kind of stuff for a living say: https://www.forbes.com/nba-valuations/#473f74d16db6 #6: Clippers #8: Rockets ... #27: Bucks But hey, I'd love to see your valuations that show otherwise. You said we could go through the numbers, so I look forward to your analysis.
Actually it says exactly what I said The franchise was valued at $500 million Edit: The theory on why he paid so much is what's different The $500MM value was a very public number Guys like Rick Ross were talked about as potential buyers. He couldn't pay $2BB.
Yes, we all believe so. The difference in communication styles is so different that either someone hacked his account or he hit his head and got Knoblauched.
I'm not so sure. I think the poster should provide a picture of himself and we can compare it to the real pgabriel's mugshot. just to remove the doubt
The thing is, I disagree with you often, but at least I know it's you. It's just strange how his posts have radically changed. I could be wrong, though. Just seems odd.
he had a personal meltdown and got banned then was gone for years. totally possible his point of view on life changed. I'll wait for more facts before deciding.
Allies of Comrade Trump have clearly taken over PGABRIEL's account. This is a high level intelligence operation. I can only hope that the real pgabs wasn't tortured or forced to eat Trump steaks before they sent him to Sibera.
I'm offering only $1.66bil. Hope Les won't work me up more. I know i'll be balls deep in tax for the next 3-5 years, and I'd agree to NEVER move the Rockets out of Houston.
He said she being with her black boyfriend's in his seats was embarrassing So he has to go around his friends and hear about that. It was a personal matter and that's not a disparaging remark about black people It could have easily been about young boyfriends Regardless I think those tapes were a setup on the new commissioner and Silver took the bait Regardless of anything Sterling got four times value. You're a finance guy, do you disagree about the valued?
We've known for decades what a racist Sterling was. We didn't need the tapes. But, he sounds like a total racist in the tapes too, and he hangs out with racist friends. Setup or whatever, I'm glad he's gone from the NBA. Should have happened years ago. As a finance guy, no I don't think he got 4 times value. I think Ballmer paid a bit of a premium to make sure the deal went through quickly given the uncertainties created by the way Sterling was forced out. But not 4 times. It was not a great franchise, primarily because of poor leadership from Sterling, but the potential of a Los Angeles based franchise is obvious. Any suitor would be thinking about the future cash flows he could make with good leadership and offering accordingly, because it was a competitive bid. Look at the Forbes valuation today: $2 billion. They didn't just take the book value from the sale, they're running a valuation based on model of cash flows. Now the market for NBA teams is not all that liquid, so I think you'll see price volatility on idiosyncratic stuff; but without public financials for these companies, you won't get a better valuation than Forbes until there is a sale.
Careful. You're using logic and apparently the Russian bot running pgabs account might not be able to handle it.
Juan The Time article says the value was $500MM. Four times is more than a premium Did the Raiders go for two billion, an NFL franchise The girlfriend is black so whatever about his racist paat
Because the franchise valuation was wrong. http://www.cnn.com/2014/05/29/us/nba-clippers-sterling/index.html Professional franchise valuations are routinely wrong. The Dodgers were valued at $800M by Forbes and sold for over $2B less than a year later.
On Sterling, he also says he loves his players' beautiful black bodies. He has a very carnal way of talking about black people, the way someone might talk of a race horse. If you don't want to be offended, fine. I'm offended though. Regarding the Time article, he's using a 4x multiple of revenue. Using a multiple is a simplistic way of doing a valuation. That's what you do when you're at a cafe with the i-banker and wondering about where you might play. Maybe worse than that, because he's not even talking about EBITDA here. You could use revenues when you're talking about a start-up that's losing money and trying to get traction. The NBA is a mature business that cashflows. Maybe it's for lack of data, but I'm suspicious of his method. Anyway, even when the team first went up for sale, they were saying it'd top $1 billion. We knew then a big TV deal was coming. But, apart from the cash flows, we know there were a lot of suitors, and at least 3 serious offers. Ultimately, a firm is worth what the market is willing to pay, cash flows be damned. Ballmer was the high bidder, but probably didn't beat the others by more than a couple hundred million. The LA-cool factor won't be repeated for Houston; but the NBA-cool factor will. If the Clippers were a vanity purchase, Houston probably will be too.
