Steve Ballmer Looks To Stream Los Angeles Clippers Games?

Los Angeles Clippers owner Steve Ballmer and the Internet were made for each other. Though the former Microsoft CEO’s unique brand of unintentional comedy has been the stuff of YouTube legend since long before he supplanted racist, leathery piece of furniture Donald Sterling, it seems Ballmer might soon be utilizing the web for much more than the occasional viral video.

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The New York Post reported Thursday that Ballmer has turned down a lucrative deal for the team’s local television broadcasting rights in favor of pursuing alternative methods of bringing Clippers games to the viewing public via an online streaming service:

"Steve Ballmer, the owner of the Los Angeles Clippers, has turned down a $60 million-a-year offer for local TV rights and is forging ahead with a plan to start his own over-the-top streaming network, The Post has learned.If he follows through on the plan, Ballmer, the former CEO of Microsoft, would be the first owner of a major US sports team to deliver games direct-to-consumer via a Web-based service and not through traditional cable or satellite companies, sources said.Clippers games are now aired to roughly 5 million Los Angeles-area homes through Fox Sports’ Prime Ticket regional sports network in a deal that runs through the 2015-16 season."

You can criticize his Kmart catalog wardrobe and spasmodic dance moves, but Ballmer didn’t amass over $20 billion in personal wealth by lacking vision and business savvy. With droves of cord-cutting consumers moving away from traditional cable packages and opting for streaming services like Netflix, Hulu and HBO’s slew of mediums, Ballmer shifting his distribution model to fit the new realities of an evolving digital marketplace certainly makes sense.

The Post also points out that there’s a good chance Ballmer is only using the idea of an over-the-top streaming service as a cudgel to intimidate cable networks into coughing up more money. While the Clippers are not in the same ballpark historically or globally, their Staples Center co-tenants, the Los Angeles Lakers, rake in approximately $200 million annually from their TV deal, making the $60 million offer from Fox Sports seem like a relative pittance.

Still, even at $60 million per year, Ballmer and the Clippers could be hard pressed to match the stability and steady flow of “old money” that comes with hitching up with a cable network like Fox Sports’ Prime Ticket, even taking into consideration the fact that Ballmer certainly isn’t lacking for tech connections:

"The 59-year-old Ballmer’s tenure at Microsoft gave him direct insight into the world of live-streaming video — thanks to the success of its global Xbox gaming console.While he may have the technological smarts to pull it off, Ballmer may find it hard to earn more than $60 million in revenue a year from a single sport streaming RSN, experts said."

Ballmer may not be the most distinguished basketball mind in the sport, but there’s little doubt that if anyone has the entrepreneurial vigor to pull off a move like this, it’s him:

Additionally, even if Ballmer ultimately chose to distribute Clippers games via an over-the-top streaming service, he might have difficulty maintaining subscriptions during the NBA’s down time between late June and October. Again, per The Post:

"The Clippers would have to sign up around 10 percent of LA’s 5 million households and get a pretty high price for the service, those people said.“If it costs $12 per month, multiply that by 12 months in 500,000 homes, it would add up to $72 million — but then you’d have to produce the games and market the product,” said one.And that’s if Ballmer can give fans a reason to subscribe during the five-month off-season.If he can’t, revenue would only come to $42 million."

Even with the risk inherent in such a bold endeavor, there could be long term ancillary benefits to Ballmer sticking a red, white and (occasionally powder) blue flag into the rapidly expanding landscape of streaming online services. A recent article on NetworkWorld.com suggests simply being the first NBA team to go the over-the-top streaming route has real value:

"Once the technology is in place – which would make the Clippers the first NBA team with such a service – it could open all kinds of opportunities. Earlier this month, The Verge ran an in-depth profile of Baseball Advanced Media (BAM), which began as a small division with Major League Baseball dedicated to building and maintaining team websites. Over time, however, the people working at BAM saw the opportunity for streaming baseball games over the internet. Now BAM has broken out as its own organization and handles streaming for HBO and the WWE. Ballmer has to see the difficulties in making a profit by launching a streaming network just for Clippers games, but he might see the greater value in being the first to market with the technology."

Ballmer could certainly use a win the likes of what BAM experienced. Though by all accounts the Clippers seem to be a financially healthy organization primed for another playoff run after bringing their core players back (barely), one of Ballmer’s first major moves as owner—the uniform and logo redesign unveiled earlier this summer—was roundly criticized for…well, being terrible. If the Clippers players themselves aren’t going to be presented in sleek, sophisticated packaging, at least we can hope that the live video feed of the games will be.

Now, because of its intrinsic value to the journalistic integrity of this article, here’s this video:

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