good evening from los angeles, i'm tavis smiley. tonight a conversation with steve ballmer, the new owner of the l.a. clippers who took over the franchise in the aftermath of the donald sterling scandal. his winning bid, $2 billion. the highest price ever paid for an nba team. of course, that's pocket change for a man said to be worth some $23 billion for his role in a success of a company called microsoft. we're glad you joined us. our conversation with steve ballmer coming up right now.

♪ >> and by contributions to your pbs station from viewers like you. thank you. . okay, so you love basketball. i mean, you really love basketball. if you were in on the success of microsoft like one steve ballme was, you could write a check and become an owner for a cool $2 billion. what's amazing -- first of all, i'm honored to have you on the program. we've been friends a lot of years. i'm glad to have you in l.a. as the owner of one of our local teams. the clippers specifically. but you tried to buy one, two, three people? >> you know, i worked out --

>> four? >> a couple times before we got -- i'm lucky i got the one i got. >> you really love basketball. you tried -- you look ted seattle teams -- >> the seattle team a couple of times. >> a couple times, okay. >> i look at sacramento. >> okay. >> took a little look at milwaukee earlier this year before it sold. and then was in shape and ready to go in the clipper situation. >> what do you make -- i don't believe that, you know, things happen without purpose or reason. what do you make of the fact that you had gone through the process, you had basically run the hurdles and were in training to be the owner of an nba franchise and had no idea that this story would blow the way it did. what do you make that after that youen up with a team in sflaux. >> well -- you end up with a team in los angeles? >> well, providence. everybody's got their own view. i not tthink the sun, the moon, the stars aligned. i know how to think about this.

this required a little bit bigger commitment than the other deals. his gone to see adam silver when i retired from microsoft in february. >> nba commissioner. >> i said, i'd like to own a basketball team. what's going on, how should i think about -- seattle, where i lived. you think we can get a team there. he said, maybe someday, but we're not expanding. you know, we're trying to keep teams where they are. i said, what about l.a.? that's the other place i like." he said, no, those teams have been owned boot i say the same forever. they're never going to sell. then the milwaukee thing didn't happen for me. now you we're sitting here trying to put together a win streak. >> to those who say -- i know this is not the first time you heard it from me. for those who think that you paid too much, i mean, it is l.a. it's a major market. clipper got a great coast, a great squad. let's get a win streak going here.

for those who say that you paid too much for the clippers, what's your response? >> i don't think i did. people will say, you're only doing this because you love basketball and it's a hobby. okay, people want to think that. i think it's a reasonable investment. number one, tell make money? because of the situation here in los angeles, there's a chance to make money that you wouldn't get with some of the other nba franchises. two, is it a market if you were in the real estate business, you'd say it's all location, location, location. well, this is the market in the united states. maybe this in new york. it's going to become most desirable, not just for american buyers 10, 20, 50 years from now, but foreign buyers. this is where people want to live. i bought beachfront property. number three, we bought a great team. we want to billion a brarng-- ta brand because we have a great

set of guys right now. there's not much downside in these teams unless the economy falls apart because people love sports. >> yeah. tell me your perspective on the whole scandal and how you were navigating. there's always a back story. the scandal's unfolding. it's becoming clear he's going to have to unload this team at some time in some way. you're been the scenes and talking and meeting. what of it like been the scenes while we were following the story every day? >> it was interesting. i don't remember if the thing broke on wednesday or thursday. my son called me at 7:30 in the morning. college kids don't get up at 7:30 in the morning. hey is, "dad, it's your -- he said, "dad, it's your time. the clippers are going to sell." he 20 now.

he was 19 back then. he says,"you know, dad, you love l.a. and you love the clippers. this is it." iy i y isaid, "what do you mean" he said, "you dad, listen to the tapes. he's a good sell." i listened to the tapes and said he's right. i didn't we come to do. call the commissioner. the commissioner couldn't say anything until he could say something. he had to go through his process in privacy. they knew me. i applied to be an owner before in the sacramento case. i was talking to the league, and the league of clear. best thing to happen, is it the sterlings sold the team as opposed to the nba team taking it. nobody will know what it look like. everybody thought they had their legal cases. you but if they choose to sell

the team, that's fun. you should try to get them to sell you the team. i don't know these people. i didn't know either sterling. so i'm trying to figure out how to get. there i is a friend who's a part owner this golden state. he said, "you should always go for games." i played -- watched the one against -- a guy said, i'm friends with michael's sons, and they happen to have seats next to them for years. mike michael eisner can help you. i'm afraid i'm out of the process. i don't live in l.a., i assume there's big deals happening here. and finally memorial day, mike will get shelly on the phone. shy said, come on down, and we'll talk. i was at another one of my son's

basketball tournament. >> shelly sterling. my and he said, don't worry, i'll fly you. that's when things haitied up. that would have bon a saturday. -- heated up. that would have been on a saturday. we introduced steve, we've been friends for a long time. let me tell you how i know steve ballmer? >> let me back up, every few years, i think it's important to do that. i've been working hard on the issue of poverty. some years ago, i was concerned about the fact that black people i thought would end up as roadkill on the information superhighway. we didn't really good sears getting in the technology -- it's called blacks technology. for three or four years, i

carried a huge action -- active event in congress. to have shifted, technology, i call you, asked for a meeting. and microsoft thanks to you wrote a big check and sponsored it for three or four years as wye travelled across the country. and thousands and thousands of events. >> i remember the one you got in new york. 7:30 in the morning, you managed to get teenagers out -- i'm still grateful all these years later. you understanding what that vision was about and why that work of so parent to g-- work wo important to get people into this technology arena. when i heard that you were interested in buying the clippers, my heart rejoiced.

one, i live in this town. two, i go to the clippers game, et cetera, et cetera. i thought i don't just want people to pay for it who understands this sense of inclusion and diversity and understanding and embrace. it was like, that's my assessment. from your seat, why in the world, even though he had the money to buy it, will you get involved with an ugly nasty mess. we see with the police killings that this is the most drama. you were not sucked into the drama. >> it's not first with dock rivers, our coach this is before

my acquisition of the team had been approved by the nba. i'm under strict rules. we can't talk about ask a football team or anything else. we talked about the clutter of the sterling era and everything else. he said, they're not going bright with race relations by buying this basketball. he said, i understand that, but i love basketball, i love the team. if we, the clippers, could be a positive force, inspirational somehow in the community, that can't be a good thing. in that context, i came in and embraced whatever coming our way. i think we have a chance to have an increasingly big difference. our team is here, our players are here, they've gone through a mess of clutter, as doc likes to call it, we're in pg-ritied company. >> yes. >> i think that's the way to

think about it. i hope we can be a positive force when positive stories are important. >> did you so a need, intro, to address these issues? and how have you personally thought or gone by trying to put -- for lack of better phraphras took off his cap. >> it aebased on the story of d sterling and what happened, i probably would have imagined a staff that's not very indilutcl at all. >> i thought, woe. we have a lot manufacturer people. frankly, because i came in just thinking, okay, we really -- you know, we are starting a deficit. yand we're diverse organization

than i expected -- and we have great folks, we're diverse in gender as well as in race which i think is great. we can do better. a itself happened, the candidate i found who i thought was best to run the business side of our operation is a woman. a little different. the stock said, you can work in nascar, you can probably run a basketball team. >> yeah. >> good point. >> you know? >> yeah. >> so i think we've got a platform to keep building. we've got some good people in our organization. the team, basketball administration as well as business, and i want us to be a managele for how you run on a company. who can attract those people? people want to work for sports

thieves. honestly the -- it's somehow really attractive. so many young people -- >> i assume you had more people at clifford than at microsoft. >> we're 4140,000. that include the players. >> what's funny is you go from 100 to $140,000 at microsoft. more at the clipper organization. i'm curious as to which one, mixture of heart palpitation next -- not seeing a new you doctor. >> my life for 34 years was building microsoft. i joined. we were 30 people. you know, 2.5 million in revenue. and we went from 30 to 100,000

in 2 pictu.6 billion versus 0 b. it isn't so much numbers and revenue, my heart was going and every day at lunch -- i've got a lot invested. i do have a language. the thing about the -- it's less complicated, if you will. and i'm much more hand off. i have known i said dock rivers it you come sb-- i know basketba prompt eshl sen-- as taxing. >> let me ask you a couple of

questions about the fans of your team. and we'll talk about microsoft. let me start with microsoft thing first. back to the movie, michael has a new by when you played out. tell me what you think the mush of wrafrs is. i can read anything on any given day about people's projections and idea about the future of this opportunity. you're gone. gates isn't legislation the big innovations -- you look up the next ten years, the world's going to continue to tranfoam through noengnology. -- you've got to have talent, ideas, what i call capabilities, you know, software development, being in the internet cloud, building hardware. those are capabilities. so you got to have the tools.

talent, ideas, and helps some business have good profitability. support you through thick and thin if you will. who's in better shape than microsoft? there's companies on the list. there are guys i can't say their names that we compete with. google. other guys out. there at the end of the day, you've got more cash reserve. >> we have a real shot. and we continue to serve both people, consumers, as well as businesses and businesses are a big part of what goes on in technology. so i feel very good about the prospects. that's why i own 4% of microsoft, and i'm not selling because i believe. >> yeah. tough difficulties in that business to your mind, there's no industry that movies at tthe -- i'm fascinated by the stuff,

about how much of this has to do with just being ahead of the curve and being able to predict everything gets headed. >> let me agree but throw a different cast. there's something that i won't get the quote right. i think it was michael jordan who said something about you see, the game doesn't look too fast. everything looks like it slows down. i think you're really good in there. the ideas that really shape the world, that sort of have luge one, you get one about every five, six years. if you really look at it, the idea of the microprocessor was a wreakthrough. intel. software is a business, microsoft. the whole notion really of internet scale computing, cisco. then you making it useful,

google. and then miniturization, i.e., the phone in the pocket. apple. that's where they come back. the notion of people connecting, facebook. but i've given but 0 years now of connect tree. i may have missed one. the key isn't that you have to get it -- swing at every pitch. you got to wind the big one and go after him. >> that's the microsoft stuff. now to your hard core die hard sports man, how do you respond to people who are waiting for this team to equal the results of the talent thent that you doubt about the election. how do you put that together and make the team live up to its talent, to its potential? >> we are a very good team, and

there are other very good teams. we have to really anchor in our commitment, something call the five cs, the two big ones are commitment and character. we've got to show great derek character but that's where it flex, too. >> feel so much better. you got to show the character and commitment and dedication to realli, it's who win. i think we have a real shot. you know, pete carroll, the coast of the host is, he -- >> you got flipped. he went from l.a. to seattle. you got -- >> come on in. we'll tell you how it work. the seahawks. he said, you can prepare really hard, you could work really and you know, i get your pied in!

but you're going to need work, too. you got to keep every day trying to be better than the day. what does dine talk about. 82 games. in you're going to go crazy every graham, you're probably not going make this. and two we're got -- we started the season, i would say badly. i think we were 5-4 we'll were worried. then boom, boom, boop. if we reel in a loss, so when we're moving the ball, playing hard-core defense, we're tough to beat. what have you learned so afford -- i'm ur in tas far as g a product that is living and

breathing. player's are not the same as let me fifth you t-- let's talk abo managing the players versus the engineers. they're both in some senses the talent of the respective industries. i don't manage the players here. i'm there to be supportive, encouraging. but you know, the good, the bad, the ugly, the messages, they come from doc. we're talking things through and he and his dock take it from there. i try to be encourage particular and encouraging. the flip side is malling the product. the product isn't the team duel. what we have to do is support that team. it's not as arizona we staples is it in other buildings in the nba. you know what, our flavors one

in -- it's louder. it helps us out when fans are louder. we can talk about how do we make it more energetic, more exciting to be in our building? what do our fan want that will get them cooking. how hairand we make it more excg than to watch on tv. nobody's played with the technology for watching sports on tv. we're thinking stats, fantasy games. what did we do to draw people? and change that part of the chu product, but they interact. when the building is noisy and -- >> they said, no. we really like it. our fans have written their hard-core -- >> they want that golden state kind of crowd. >> specifically, they sided another one in memphis.

>> memphis? >> it's a noisy -- >> i think that i've sent a belt. >> i take not disagree at all. we're out of time, right quick, a birdie told me that even at this -- i want to be kind. even being as cron lookically gifted as you are. as you know, i heard it that somebody's working on his bar mitzvah. >> what happened? >> when i was a kid, my dad got 8qoverseas. my day of an sgre-- just growin, never had, my dad was christian, my mom of jewish. never had a bar mitzvah and i got time, and i'm we'll see if this ancient mind connect can

process the hebrew. >> it's great to license. and jonathan is the biggest clippers fan ever -- >> jonathan? hello, more importantly, baby, go, clippers! >> there you go, jonathan and will all of our fans watching with steep steep steep. >> pleasure to be here. >> that's our show. thanks war watching, and as always keep the faith. >> for more information on today's show, visit tavis smiley at pbs.org. >> hi, i'm tavis smiley. join me next time for a conversation first with eula biss and the grammy nominee billy child. that's next time. we'll see you then. ♪

>> and by contributions to your pbs station from viewers like you. thank you.

the following kqed production was produced in high definition. and their buns are something i have yet to find anywhere else. >> i'm not inviting you to my house for dinner. >> breaded and fried and gooey and lovely. >> in the words of arnold schwarzenegger, i'll be back. >> they knew i had to ward off some