360° Coverage : Real Estate Magnate Don Peebles Wants The L.A. Clippers

2 Updates

Real Estate Magnate Don Peebles Wants The L.A. Clippers

May 6 2014, 12:13pm CDT | by

The NBA’s effort to oust Los Angeles Clippers’ owner Donald Sterling from its ranks is just getting started.  Sterling has said he plans to fight any forced sale that the league believes it can...

Filed under: news

 
 
 

23 weeks ago

Real Estate Magnate Don Peebles Wants The L.A. Clippers

May 6 2014, 12:13pm CDT | by

The NBA’s effort to oust Los Angeles Clippers’ owner Donald Sterling from its ranks is just getting started.  Sterling has said he plans to fight any forced sale that the league believes it can swing with a vote of three quarters of its owners, so figure on a lot of lawyers getting involved before this thing is settled.

That hasn’t stopped speculation on the identity of the Clippers’ next owner, if and when a sale happens. Most of the speculation revolves around celebrities – Oprah, David Geffen, Floyd Mayweather. But Don Peebles, a New York-based real estate developer whose firm, Peebles Corporation, is one of the most successful black-owned businesses in the country with a commercial and residential portfolio of $4.5 billion, has his own idea of who the next owner of the Clippers should be – him.

Wealthy (the 54-year-old has been a multimillionaire since he was in his 20s after dropping out of Rutgers University to embark on his first real estate deal) and well connected (the lifelong Democrat has hosted fund raisers for Bill Clinton and Barack Obama, and contributed money to politicians on both sides of the aisle), Peebles has proclaimed his intent to form an investor group to take the Clippers off the hands of the controversial Sterling, an announcement he initially made on CNBC last week. He plans to unveil the names of others in the group in the coming weeks.

A big basketball fan who has traveled the country with his son to watch the NBA Finals in Detroit, Los Angeles and San Antonio, Peebles never particularly pursued the idea of buying a team until the fast and furious fall of Sterling sparked the sudden revelation of an opportunity. “When things got to the point of the president speaking about it, I thought I’ve got to get going,” he says.  “The attraction for me is that this is a good investment for a team that’s evolving – at the right price.”

There’s the rub. The timing for a buyer isn’t the best: after so many years as an NBA door mat, the Clippers now boast a strong team with two of the league’s more marketable players in Chris Paul and Blake Griffin. They’ve hit an upswing in the NBA’s most glamorous market just as the Lakers have nosedived. Basing estimates on the recent $550 million price tag of Milwaukee Bucks, many see the Clippers selling for $700 million to $1 billion. Peebles points out that the pure financials put the value of the club at the low end of that range, but of course competitive bidding for a major sports team in L.A. often results in a nice premium for the seller (remember the Dodgers?).

A selling point that Peebles hopes to impress on the NBA Board of Governors, which must approve a sale: that he’d make a different kind of owner, one who makes it a point to mentor players in business and in life, so that fewer of them will avoid the pitfalls that have resulted in an alarming number of them going bankrupt within a few years of retirement. Long active in efforts to introduce entrepreneurial principles to young people, Peebles’ high powered life has already resulted in friendships and/or business relationship with ex-NBAers Alonzo Mourning, LaPhonso Elli s and Grant Hill, among others. Shaquille O’Neill once bought a couple of apartments in one of Peebles’ Miami buildings. NBA rules limit how much an owner can include a player can collaborate on an outside business deal, but he figures just advising and networking can make a big difference.

“Think of what the impact would be if this league could be a long term, sustainable source of wealth,” he says.

The issue that can’t be ignored: when it comes to the NBA approving a sale, how much weight ought to be placed on the race card? Surely, introducing a black man as the Clippers’ next owner just as it’s showing Sterling the door over racist remarks makes for a tempting public relations coup for the league. Peebles acknowledges this, but thinks the angle can be overdone. “It would look good, but it could also be perceived as a cliché,” he says. “They ought to make their decision based on business.”

It’s true. When all is said and done, the most important color for the NBA is the same as for any other business: green. We’ll see how well Peebles and his group compete on that front, when and if Sterling is gone for good. “Mr. Sterling will fight to protect his interests,” he says. “But I don’t see this being protracted. I see weeks, not months or years.”

Follow Me on Twitter

 
Update
2

7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slas ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tr ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Non-smokers face major health risks in smoking homes
London, Oct 21 (IANS) Living with smokers is as bad as living in smoke-free homes in heavily polluted cities such as Beijing or London, researchers said.
 
 
Finally Nepal, India sign power trade agreement
Kathmandu, Oct 21 (IANS) Nepal and India here Tuesday formally signed a landmark power trade agreement (PTA), allowing exchange of electricity, which is expected to open up new vistas of cooperation in the hydropower sector between the two energy-starved nations.
 
 
Depressed people, too, believe in brighter future
Toronto, Oct 21 (IANS) Like most adults, even depressed people believe in a brighter future, but for them this optimistic belief may not lead to better outcomes, found a research.
 
 
Indian-origin sisters develop tool to detect lung, heart disease
Washington, Oct 21 (IANS) Two Indian-origin high school students Ilina and Medha Krishen have developed screening tools to detect lung and heart disease using electronic stethoscopes.
 
 
 

Latest from the Network

1,074 new dengue cases in Chinese province
Beijing, Oct 18 (IANS) China's Guangdong province has reported 1,047 new cases of dengue fever, health authorities said Saturday. Six people have already died in Guangdong -- five in Guangzhou and one in adjacent...
Read more on Business Balla
 
Blake Lively 'always' wanted to be mum
Blake Lively has ''always'' wanted to be a mother. The 27-year-old actress is expecting her first child with husband Ryan Reynolds and she admits she's been dreaming of this moment since she was a youngster. Speaking...
Read more on Celebrity Balla
 
Kris Jenner 'torn apart' by Bruce's new relationship
Kris Jenner feels ''torn apart and angry'' that Bruce Jenner is dating her former assistant. The 58-year-old matriarch split from the 64-year-old Olympic gold medalist last October following 22-years of marriage but is...
Read more on Celebrity Balla
 
Cheryl Fernandez-Versini won't move to France
Cheryl Fernandez-Versini doesn't want to move to her husband's home country of France. The 'X Factor' judge, 31, who comes from Newcastle, is adamant she won't be relocating any time soon to suit her new spouse Jean-...
Read more on Celebrity Balla
 
Lance Bass sets wedding date
Lance Bass has set a date for his wedding. The former *NSYNC singer and his partner Michael Turchin, who have been dating for two-and-a-half years, are to tie the knot on December 20, 2014, a representative for the...
Read more on Celebrity Balla
 
Nepal avalanche toll reaches 39
Kathmandu, Oct 18 (IANS) At least 39 climbers died while hiking on a key Nepali route after it was hit by a major snowstorm and avalanches earlier this week, BBC reported Saturday citing officials. Over 350 stranded...
Read more on Politics Balla
 
Jake Gyllenhaal says society is complicit in 'nightcrawling'
Jake Gyllenhaal says almost everybody in society ought to relate to his new movie 'Nightcrawlers'. The eagerly-awaited film concerns those people who monitor police scanners and then race to crime scenes to film eye-...
Read more on Movie Balla
 
India eves look for first win in AFC U-16 qualifiers
Dhaka, Oct 18 (IANS) India will hope to register their first win of the 2015 Asian Football Confederation (AFC) Under-16 Women's Championship qualifiers when they take on hosts Bangladesh in a crucial encounter at the...
Read more on Sport Balla
 
Moyes mulling return to management
London, Oct 18 (IANS) Former Manchester United manager David Moyes said that he is ready to revive his managerial career six months after being sacked by the 'Red Devils'. "I am ready to return. I have enjoyed the...
Read more on Sport Balla
 
Ebola fears loom over Ghana hosting AFCON
Accra (Ghana), Oct 18 (IANS) The Ghana Medical Association (GMA) cautioned the government Saturday against hosting the 2015 African Cup of Nations (AFCON), despite a request by the Confederation of African Football (...
Read more on Sport Balla