The Los Angeles Clippers has a “For Sale” sign hovering over the team but don’t expect to find the listing online. If you want to own the team, you’ll have to front at least $2 billion or more. Oh, and spend a lot of time in court.
Even if you can afford the L.A. franchise, be prepared for a dirty bidding war. According to the Washington Post, basketball teams typically sell for three times the revenue of the team.
Since the Milwaukee Bucks just sold, that resets the precedent for other teams. It’s pretty shocking how big the price tag was, especially since the Bucks aren’t exactly a valuable franchise in the league. The Bucks sold for a league low – are you ready for this? – $550 million.
That’s higher than what Forbes estimated their worth to be.
So, what does this mean for the Clippers? Well, not only has Donald Sterling turned this situation into a “battle for morality” but the team is full of talent and potential.
According to Forbes, the Clippers are $575 million based on revenues, but it’s an incredibly unique situation. Since there is an auction process, the price will go up.
Owning a team in L.A. is highly coveted and for many moguls, this is their shot. This makes the price sky rocket even more. According to the Post, the longest tenured ownership in the NBA are in Los Angeles. For someone wanting to buy, this could be their only chance for a long time.
So, billionaires, now’s your shot. But, you’ll have to get in line. Stars like Magic Johnson, Oprah Winfrey, and even Justin Bieber have expressed interested in buying the team.