The $1.2 Billion Value Extraction
Yesterday when I heard the news that Steve Ballmer was going to pay $2 billion for the Los Angeles Clippers NBA franchise I just about fell out of my chair. Thing is, I do know exactly why an $800 million team, tops, went for $2,000 million. It has everything to do with the reigning zeitgeist constructors. What the heck does that mean? It means that people are going to pay through the nose for a team that is going way out of its way to ensure everyone that it doesn't have a racist at the helm. Come on, think about it. What is the Clippers? It is a basketball team, reasonably popular, it's made the playoffs a few times recently, it plays in the second largest media market in the country, yadda yadda. But what else? The highest valued professional sports team franchise in the world is Manchester United, the European soccer club, at something a bit over $2 billion. The NFL's Dallas Cowboys is at around $2 billion I'm pretty sure, but I think part of all that involv...