Extraordinary Genius Chapter 978
Sterling had bought this team because of his excellent friend Buss. Buss is the owner of Lakers, and he had helped to bring Clippers to LA.
But their teams were of different standards. Many LA basketball fans had never watched Clippers, and Sterling had become frustrated with this team a long time ago.
This year, the NBAs collective bargaining agreement on players salaries cap had ended, and there will be a lockout. This means the owners will be losing money this year, and Sterling had been waiting for a buyer for his team.
Today, Sterling felt he might be successful in selling his team.
This person is the worlds second wealthiest man. With so much money, he should not mind spending a bit more.
Many years ago, Sterling had spent 12.5 million for this team, and most teams are not worth anything, other than the Bulls, which is worth over 100 million USD. His team does not have good results, and the attendance is poor. It is difficult for this team to fetch a high price, but he hopes to get around 70 million USD. No matter what, this team is also based in LA.
"Nice to meet you, Mr. Feng. Its my honor to dine with you."
Trump was surprised at Sterlings attitude. Since when did this guy become so polite?
"Hi. I believe Donald had told you why I am here. Are you selling Clippers?" Feng Yu asked.
"Of course, or I will not be here. To be honest, I cant bear to sell this team. After all, in LA, we still have many fans."
Feng Yu smacked his lips. Bullshit. There are many basketball fans in LA, but all of them are Lakers fans. Lakers have a more extended history, and until now, it is a strong team. What history do Clippers have? This team is at the bottom this year again, and what fans are you talking about?
"Good to know that you are interested in selling. I know you are the sole owner of this team. How much do you want for this team?"
"How about 90 million USD?" Sterling asked.
Before Feng Yu says anything, Trump laughed. "Sterling, stop joking. Last year, the Knicks sold 30% of their shares for only 30 million USD. How many people will be interested in your team even if you are selling it for 50 million?"
"Trump, you cannot say this. I had bought this team for 12.5 million years ago, and it is reasonable to increase it by a few folds, right? The ticket prices had increased by a lot, and we have more fans now." Sterling argued.
"If we are talking about Lakers, 90 million or 100 million is still reasonable. But we are talking about the Clippers, and I think 50 million is a reasonable price. This team does not have good results in the past, star players, or loyal fans. Furthermore, you cannot use the initial price to evaluate the value. Feng is also the owner of the Empire State Building. Empire State Building has a long history, and its value had dropped lower than its construction cost. It should be normal for the value of a team to depreciate, right? Fifty million USD is also a lot of money."
"No that is a building, and more investments are required to maintain the building. Of course, the value will depreciate. But after renovation, the value will increase, right? A basketball team is different. Our team is trying to become better, and if not for injuries this year, our results will not be so poor."
"Really? But even when you all entered the playoffs in the past, your ticket sales are also not doing well. You all do not have the results nor stars. How can you all attract fans?"
"But we might be getting the best odds for the first draft pick, and if we get a future basketball star, everything will be different. I had my eyes on one black player." Sterling argued.
Feng Yus eyes opened wide. This is a joke that happens in Feng Yus previous life. Clipper will pick a player by the name of Michael Olowokandi and was proved to be a mistake.
Sterling had thought Olowokandis size is an advantage, and maybe he is as good as Hakeem Olajuwon!
"First, you have not signed the top draftee. Secondly, even if you had won the draft lottery and signed the top draftee, your team might not win. You are using an uncertain future to raise the price of your team. Dont you think this is a joke?" Trump said.
Feng Yu loves Trump. This man is interesting and must have read up about Clippers before he comes. His negotiation skills are excellent, and had made Sterling speechless!
Sterling realized that Trump is here to help Feng Yu bargain with him. Trump had said is true. Even if the Clippers are put up for sales at 50 million, no one will be interested. The new owner will inevitably lose money if they buy this team. Who will be interested in a money-losing business?
"Then how much do you think is reasonable" Sterling asked.
"I think 50 million is reasonable. You can use the money to invest in real estate, and the returns will be much higher."
"Are you kidding me? I had spent 12.5 million for this team, and a few years ago, Rockets was sold for 85 million. You want me to sell it at a loss? Impossible! 75 million! This is a reasonable price, as this is LA! Also, I can guarantee that we will get the first overall draft picks!"
NBA might seem to be a fair association, but there are still rigging going on. Furthermore, if the lousy team does not have a star player, when can that team become stronger? It will affect the whole associations image!
"The Rockets is about to fetch that price is because of Hakeem Olajuwon, who is pulling in the crowds. Can the Clippers attendance be compared with them? What if the NBA gets into a lockout next year? We will be losing money. A lot of money! Stop your nonsense. We will not pay such a high price. 55 million USD. This is our highest offer. Dont ask for too much."
On the way to the restaurant, Trump asked Feng Yu about his ideal price and was surprised to know that Feng Yu is willing to pay up to 100 million USD.
If Trump can help him clinched the deal below 100 million USD, he can get 10% of the difference. Thats why he is trying his best to suppress the price.
Both Donalds argued for a long time, and Feng Yu interrupted them. "70 million USD. This is my final offer. If you agree, we will have a deal. If not, I will look for another team. Maybe I can buy a team at a lower price."
Sterling pretended to have some hesitation, but he was overjoyed. Seventy million USD can buy a good team. If the Clippers are not located in LA, he might not even sell it at 50 million USD.
"Alright. Feng, I will accept your price. We can since an agreement first, and I will report it to the association. Once I got the approval, we will complete the transaction."
Feng Yu reached out, and Ralph passes an agreement to him. Feng Yu signed on it and gave it to Sterling. "Give it back after you sign it."