Just three weeks after it was first reported that Los Angeles Clippers owner Steve Ballmer was considering buying the Forum from Madison Square Garden to clear away MSG’s legal objections to a new Clippers arena, Ballmer has pulled the trigger, paying $400 million in cash to buy the 53-year-old arena:
The deal is expected to close during the 2020 second quarter. The new ownership group has no plans to tear down the Forum, which was added to the National Register of Historic Places in 2014, and will keep it operating as a concert venue.
If $400 million sounds like an awful lot to pay for a half-century-old (albeit recently renovated) arena with no sports tenants, that’s because it is: MSG bought the Forum in 2012 for just $23.5 million, though they later spent another $100 million on renovations to convert it into a concert-only space. There are no public figures that I can find on how much money the Forum makes — it’s by far the busiest concert venue in the L.A. area, but as we’ve seen before, busy doesn’t always mean profitable — but it seems inconceivable that it’s really worth $400 million, especially in a world where it will soon face competition from a new arena two miles away. (Not to mention a world where no one knows when people will be allowed to go to concerts again.)
File this one, then, under “multibillionaire spends whatever he wants to get his new toy, because he can.” This is nothing new — Ballmer way overpaid to get the Clippers in the first place — and not necessarily a bad thing, unless you really care how the insanely rich decide how to shuffle their money around between them. But it is a reminder that when development deals are decided less by public oversight than by whether there’s some other billionaire willing to foot the legal bills to block them, it’s always possible for sports team owners to simply buy off the opposition.