LOS ANGELES (AP) — Former Microsoft CEO Steve Ballmer has
agreed to buy the Los Angeles Clippers for a record-breaking $2
billion. Now it’s up to others whether the deal goes through.
Shelly
Sterling said in a statement issued late Thursday that she’d signed a
binding contract for a sale of the Clippers by The Sterling Family Trust
to Ballmer in what would be a record deal if approved by the NBA.
Ballmer
"will be a terrific owner," Sterling said, "We have worked for 33 years
to build the Clippers into a premier NBA franchise. I am confident that
Steve will take the team to new levels of success."
Sterling
negotiated the sale after her husband, Donald Sterling, made racist
remarks that were made public. The remarks included Sterling telling
girlfriend V. Stiviano not to bring blacks to Clippers games,
specifically mentioning Hall of Famer Magic Johnson.
Shelly
Sterling’s statement noted that she made the deal "under her authority
as the sole trustee of The Sterling Family Trust, which owns the
Clippers." Donald Sterling’s attorneys contend that he is a co-owner and
therefore must give his assent for the deal to go through. They also
say he won’t be giving it.
"Sterling is not selling the team," said his attorney, Bobby Samini. "That’s his position.
He’s not going to sell."
Ballmer
beat out bids by Guggenheim Partners and a group including former NBA
All-Star Grant Hill after presenting an "all-around superior bid,"
according to an individual with knowledge of the negotiations. The
individual, who wasn’t authorized to speak publicly, said Ballmer made
more than an hour-long personal visit to Shelly Sterling’s Malibu home
Sunday and laid out his plan.
"He knocked their socks off, they
bonded, had a good connection," the individual said. The amount was also
the largest of the offers, and Ballmer was one potential buyer to deal
with rather than numerous members of a group.
Ballmer said in a
statement that he is honored to have his name submitted to the NBA for
approval and thanked the league for working collaboratively with him
throughout the process.
"I love basketball. And I intend to do
everything in my power to ensure that the Clippers continue to win — and
win big — in Los Angeles," Ballmer said. "LA is one of the world’s
great cities — a city that embraces inclusiveness, in exactly the same
way that the NBA and I embrace inclusiveness."
On Thursday, Magic
Johnson lauded the deal on his Twitter account: "Steve Ballmer owning
the Clippers is a big win for the City of LA and all the people who live
in the City of Angels!"
Though Donald Sterling’s attorneys now
say he won’t agree to sell the team, a May 22 letter obtained by The
Associated Press and written by another of Sterling’s attorneys that
says that "Donald T. Sterling authorizes Rochelle Sterling to negotiate
with the National Basketball Association regarding all issues in
connection with a sale of the Los Angeles Clippers team." It includes
the line "read and approved" and Donald Sterling’s signature.
Samini
said Sterling has had a change of heart primarily because of "the
conduct of the NBA." He said NBA Commissioner Adam Silver’s decision to
ban Sterling for life and fine him $2.5 million as well as to try to
oust him as an owner was him acting as "judge, jury and executioner."
"They’re
telling me he should stand back and let them take his team because his
opinion on that particular day was not good, was not popular?" Samini
said. "It doesn’t make sense. He’s going to fight."
It’s unclear
how the agreement will affect a special hearing of NBA owners planned
for Tuesday in New York to consider the charge against Donald Sterling
for damaging the league with his comments. A three-quarters vote of the
30 owners to support the charge would have resulted in the termination
of both Sterlings’ ownership of the franchise. The deal is expected to
be presented to the league before Tuesday, according to the individual.
Silver
has said his preference would be for the franchise to be sold rather
than seized — and that means sold in its entirety, with neither Sterling
retaining a stake. Though according to the deal’s terms Ballmer will
own 100 percent of the team, Shelly Sterling may continue to be involved
under conditions worked out privately with Ballmer, the individual
said.
Franchise sale prices have soared since the current
collective bargaining agreement was ratified in 2011. The Milwaukee
Bucks were just sold to New York investment firm executives Marc Lasry
and Wesley Edens for about $550 million, an NBA record.
Last year,
Vivek Ranadive’s group acquired a 65 percent controlling interest in
the Sacramento Kings at a total franchise valuation of more than $534
million.
This is not Ballmer’s first foray into potential NBA
ownership. Ballmer and investor Chris Hansen headed a group that agreed
to a deal to buy the Kings from the Maloof family in January 2013 with
the intention of moving the team to Seattle, where the SuperSonics
played until 2008.
But Sacramento Mayor Kevin Johnson lobbied the
NBA for time to put together a bid to keep the team in California, and
though the Ballmer-Hansen group later increased its offer, owners voted
to deny the bid for relocation and the Kings were sold to Ranadive.
The
former Microsoft CEO helped Bill Gates transform the company from a
startup with fewer than 40 employees and $12 million in annual revenue
into the world’s most valuable business. The pair met in 1973 while
living down the hall from each other in a Harvard dorm.
During his tenure at Microsoft, Ballmer was known for his competitive drive and wild displays of emotion
and hand-waving.
At
his farewell address to Microsoft employees, he high-fived and hugged
audience members, pumped his fists in the air, and even shed tears as
the popular 1987 song "(I’ve Had) The Time of My Life" played on the
sound system. In a video of the event widely viewed on YouTube, he
screams: "You work for the greatest company in the world!"
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AP Basketball Writer Brian Mahoney contributed to this report.
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Tami Abdollah can be reached at http://www.twitter.com/latams
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