After some debate, the Los Angeles Clippers were finally sold to former Microsoft CEO Steve Baller.
Ballmer, who was able to buy the team after the NBA forced former owner Donald Sterling was recorded making racist comments and soon was fined $2.5 million and banned from the NBA for life, paid $2 billion for the club. That game as a bit of a surprise because the team was recently listed by Forbes as being worth $575 million. The likely means that several other franchises are worth much more than anyone thought.
Cork Gaines of Business Insiders takes a look at how much each team is worth compared to the Clippers after the sale.
Instead of $1.4 billion, the New York Knicks are suddenly worth closer to $5 billion, the Lakers may be worth $4.7 billion, and the average team would be worth $2.2 billion instead of $634 million.
Of course, this is the extreme case and it is quite possible Ballmer overpaid just because he desperately wanted to own a team.
However, there are several reasons to believe the potential value of the franchise is much greater than the current value of $575 million, including a new television contract in the next few years and a current operating income ($15.0 million in 2013) that is actually below average ($23.7 million) despite being in the huge Los Angeles market.
In this scenario, ever the least valuable teams in the NBA, the Charlotte Hornets and Milwaukee Bucks, who have a projected worth of $410 million according to Forbes, would be worth $1.43 and $1.41 billion, respectively.
Gaines also took his factor of 3.48 and applied to the Dallas Cowboys - they would be worth $8 million.