Acquired

In honor of start of NBA playoffs, Ben & David venture off the beaten path to explore one of Steve Ballmer’s most famous acquisitions, his 2014 purchase of the Los Angeles Clippers NBA franchise. Was this landmark purchase a steal or a turnover for the former Microsoft CEO? We speculate wildly! 

Sponsors:
NetSuite: https://bit.ly/acquirednetsuite
Crusoe: https://bit.ly/acquiredcrusoe
Vanta: https://bit.ly/acquiredvanta

• The Clippers’ founding in 1970 as the NBA expansion team the Buffalo Braves
• Early ownership changes and the move west to San Diego in 1981
• Acquisition in 1981 by LA lawyer and real estate developer Donald Sterling for $12.5M
• Sterling's relocation of the Clippers to LA in 1984 against NBA rules
• Struggles over the next 25 years as the "worst franchise in professional sports” according to ESPN 
• Turnaround beginning in early 2010s led by Blake Griffin, DeAndre Jordan, and Chris Paul
• The bombshell in April 2014, reported by TMZ, of a taped conversation between Sterling and his mistress where Sterling makes  hugely offensive and racist comments, directed in particular toward former Lakers point guard Magic Johnson
• Fallout from the comments, resulting in a lifetime ban from NBA for Sterling, and a forced sale of the team to former Microsoft CEO, Steve Ballmer for $2B
• Impact of the landmark sale price on NBA and other sports franchise valuations 
• Clippers performance post-sale, and  prospects for the future 
• The opportunity for technology and business model innovation in the NBA, and professional sports in general

  Followups: 

•  Instagram Stories passes 200 million users per day (including correction on the definition of DAU)
•  The Last Jedi trailer!
• Clarifying Starbucks’ same store sales performance post-IPO 

  The Carve Out: 

• Ben: Bill Gurley on This Week in Startups
• David:  Pop, Race & the '60s podcast and Just Around Midnight by Jack Hamilton