Report: Clippers owner turns down $60M annual TV deal, wants streaming network

Former Microsoft CEO Steve Ballmer didn't leave his inclination to innovate behind when he left the tech giant in 2014.

The Los Angeles Clippers owner turned down a $60-million annual offer for the local television rights to the team, and he did so with an eye toward creating his own over-the-top streaming network, Claire Atkinson of The New York Post reports.

Doing so would make Ballmer the first owner to venture into direct-to-consumer game delivery through an Internet-based service rather than through cable or satellite.

The Clippers have long existed under little-brother status in the robust L.A. market and even inside their own arena, and the reported offer from Fox Sports would have put the Clippers second to only the Los Angeles Lakers in terms of local TV revenue.

The alleged offer also represents a significant increase from the $25 million the Clippers receive on an annual basis right now. The current deal with Fox Sports' Prime Ticket expires at the end of the 2015-16 season, and Prime Ticket's exclusive negotiating window has reportedly closed.

While the Post reveals some observers believe Ballmer's plan is a leverage ploy ahead of more earnest negotiations, there are those that believe he's serious.

"He's looking at a (digital) subscription channel," a source told the Post.

Turning down $60 million annually could leave money on the table, at least in the short term. Prime Ticket is available in five million homes, and the Clippers would need a significant chunk of those homes to invest a sizable monthly fee into the streaming service for it to earn even close to $60 million in first-year revenue.

"Steve Ballmer is exploring any and all options, including a new deal with Fox," a Clippers spokesman told the Post.