Steve Ballmer to buy Clippers for $2 billion



It's probably an overpay but when you have $20B then a couple billion for a hobby that also makes money isn't a big deal.

Also who knows how clean this will go down, Sterling might still go kicking and screaming. He's old so the money isn't as important to him as his pride.
 
microsoft going after the nba

paul-allen2.jpg
 
More than twice what it is worth, but the guy can write a check and it is <15% of his net worth.
 
Shit, I'd pay to go watch him do this on the sidelines every game...who needs a mascot?

[ame=http://www.youtube.com/watch?v=wvsboPUjrGc]Steve Ballmer going crazy - YouTube[/ame]
 
For everyone interested in learning in how the world actually works, take a moment and learn about the finances in professional sports:

As of May 1st, Ballmer owned about 333 million shares of Microsoft stock. That comes out to about $13.3 Billion.

In an April 30 filing, Gates revealed that he sold 4.6 million shares for roughly $186 million pre-tax. He now owns 330 million shares, 3 million less than Ballmer, his Harvard pal who later joined him at the Seattle company.
Click to expand...

Source: Bill Gates Now Owns Less of Microsoft Than Steve Ballmer - Forbes

Assuming he sells all $13.3B in shares, he will pay $2.66 Billion in capital gains tax (13.3B*20%).

The long-term capital gains tax rate is 15% (0% for taxpayers in the 10% and 15% tax brackets, and 20% for taxpayers in the 39.6% bracket).
Click to expand...

Hence, he has up to $2.6 Billion dollars with which he can buy a team. Why? Well, like all good sheeple, we live in a culture that holds 'sports' above almost anything else. Hence, in 1946 the IRS approved the Roster Depreciation Allowance.

The Roster Depreciation Allowance basically allows an owner to depreciate athletes the same way that you'd depreciate an equipment investment or livestock. Therefore, the $2Billion that Ballmer paid will show up as a $2 Billion loss over the next decade. Even if the team brings in $30 million a year, Ballmer will still be losing hundreds of millions on paper.

In less than 20 years Ballmer will have a franchise for free that he can then sell again to the next billionaire for $2 Billion.

For more information on Roster Depreciation Allowance here are some links:

In his1962 memoir, The Hustler’s Handbook, Veeck describes how he first claimed the RDA with the IRS in 1946 following his purchase of the Cleveland Indians. Veeck assigned 90% of the team’s value to ‘intangible assets,’ or player contracts, which Veeck argued depreciated over time as players’ skills diminished. It’s a tax rule meant to address, for example, depreciations in the productive value of aging livestock used for work, breeding, or milk production.
Click to expand...
Link: The Hustler: Bill Veeck and Roster Depreciation Allowance | White Sox Observer

Another link: Exclusive: How An NBA Team Makes Money Disappear [UPDATE WITH CORRECTION]

I spend a lot of time studying tax loopholes and have a fondness for sport. Feel free to ask questions if you need any more clarification.
 
KennyPowers said:
For everyone interested in learning in how the world actually works, take a moment and learn about the finances in professional sports:

As of May 1st, Ballmer owned about 333 million shares of Microsoft stock. That comes out to about $13.3 Billion.



Source: Bill Gates Now Owns Less of Microsoft Than Steve Ballmer - Forbes

Assuming he sells all $13.3B in shares, he will pay $2.66 Billion in capital gains tax (13.3B*20%).



Hence, he has up to $2.6 Billion dollars with which he can buy a team. Why? Well, like all good sheeple, we live in a culture that holds 'sports' above almost anything else. Hence, in 1946 the IRS approved the Roster Depreciation Allowance.

The Roster Depreciation Allowance basically allows an owner to depreciate athletes the same way that you'd depreciate an equipment investment or livestock. Therefore, the $2Billion that Ballmer paid will show up as a $2 Billion loss over the next decade. Even if the team brings in $30 million a year, Ballmer will still be losing hundreds of millions on paper.

In less than 20 years Ballmer will have a franchise for free that he can then sell again to the next billionaire for $2 Billion.

For more information on Roster Depreciation Allowance here are some links:


Link: The Hustler: Bill Veeck and Roster Depreciation Allowance | White Sox Observer

Another link: Exclusive: How An NBA Team Makes Money Disappear [UPDATE WITH CORRECTION]

I spend a lot of time studying tax loopholes and have a fondness for sport. Feel free to ask questions if you need any more clarification.
Click to expand...

[ame=http://www.youtube.com/watch?v=wvsboPUjrGc]Steve Ballmer going crazy - YouTube[/ame]
 
His assets are just collateral, he's not spending his own money outright to buy the team. Only dumbass people like Curt Shilling decide to invest there own money and fail miserably into debt..
 
KennyPowers said:
For everyone interested in learning in how the world actually works, take a moment and learn about the finances in professional sports:

As of May 1st, Ballmer owned about 333 million shares of Microsoft stock. That comes out to about $13.3 Billion.



Source: Bill Gates Now Owns Less of Microsoft Than Steve Ballmer - Forbes

Assuming he sells all $13.3B in shares, he will pay $2.66 Billion in capital gains tax (13.3B*20%).



Hence, he has up to $2.6 Billion dollars with which he can buy a team. Why? Well, like all good sheeple, we live in a culture that holds 'sports' above almost anything else. Hence, in 1946 the IRS approved the Roster Depreciation Allowance.

The Roster Depreciation Allowance basically allows an owner to depreciate athletes the same way that you'd depreciate an equipment investment or livestock. Therefore, the $2Billion that Ballmer paid will show up as a $2 Billion loss over the next decade. Even if the team brings in $30 million a year, Ballmer will still be losing hundreds of millions on paper.

In less than 20 years Ballmer will have a franchise for free that he can then sell again to the next billionaire for $2 Billion.

For more information on Roster Depreciation Allowance here are some links:


Link: The Hustler: Bill Veeck and Roster Depreciation Allowance | White Sox Observer

Another link: Exclusive: How An NBA Team Makes Money Disappear [UPDATE WITH CORRECTION]

I spend a lot of time studying tax loopholes and have a fondness for sport. Feel free to ask questions if you need any more clarification.
Click to expand...


Your 2.66B figure assumes a $0 cost basis, so your figure cannot possibly be accurate. He's accumulated RSUs throughout his career.
 
So I guess Sterlings wife is a racist because she sold it to another white man? how ignorant is that shit? Now the Clippers will play with pride since they have another new white owner.
 
You must log in or register to reply here.
Top Bottom