While this is all true the valuations are still going to be extremely high.PBDWake said:Long story short, TV contracts (and they're up for a new one soon, both the local clippers and the league), the best international marketing, and an extremely owner friendly CBA.
To answer original posters question the current annual revenues are $130m for LA to $109m for the Bucks. Milwaukee sold at a 5x multiple based off future revenue expectations such as the new ESPN/TNT contract in two years. For LA's multiple to equal this Ballmer would have to find a way to turn $130m annually into $400m......no small task.
The one outlier is the local TV bidding war between Fox and Time Warner that could result in an equity partnership but still that figures to get them up to $200m. I'm comfortable with the valuation I posted weeks ago of $1.3-1.5B.
Ballmer has more motives than solely profit here however.....plus the world is going to see how completely insane he is. Makes Cuban look tame.