May 27, 2014, 9:05 PM EDT
If you read from his comments over the past couple weeks that Donald Sterling was willing to let his Los Angeles Clippers go, that he didn’t really want to fight the league, then you haven’t followed Donald Sterling’s career.
Sterling’s attorney filed a lengthy, defiant response to the NBA’s charges — those charges are part of an effort by the league to use its constitution to force a sale of the team following outcry after prejudiced remarks by Sterling first heard on a private recording obtained by TMZ and then additional remarks on CNN.
Sterling’s response talks of large offers for the team — in excess of $2.5 billion, although his attorney later denied that was the number — and promising to fight the league’s efforts to force a sale of the team, reports Brent Schrotenboer of the USA Today.
Los Angeles Clippers owner Donald Sterling said the NBA’s efforts to terminate his ownership of the Los Angeles Clippers are “illegal” and that it would force his family to pay an enormous capital gains tax that would be “egregious,” according to his response to NBA charges filed Tuesday.
In a 32-page response to the league, he said he will fight the charges and noted that he has received offers of more than $2.5 billion for the team.
Donald’s wife of 58 years, Shelly Sterling, filed a separate response with the league asserting her rights as half owner of the team under community property laws and saying she was just an innocent bystander in this. Her attorney Pierce O’Donnell reached out to NBC News with this statement:
“Donald Sterling has authorized Shelly Sterling in writing to negotiate the sale of the Los Angeles Clippers, including his 50 percent ownership of the team. Shelly is managing the sale of the Clippers. While no formal offers have yet been received, Shelly and the NBA are working cooperatively on the transaction.”
Donald Sterling’s lawyer refutes that.
The NBA is not slowing down its process, NBA spokesman Mike Bass said in a statement in response to the Sterling’s filings.
“This evening, the NBA received responses from Donald and Shelly Sterling to the charge to terminate the current ownership interests in the Los Angeles Clippers. The NBA Board of Governors will meet on June 3 at 1 p.m. in New York City to hear and vote upon this matter. Should the Board vote to sustain the charge, the Sterlings’ interests in the Clippers will be terminated and the team will be sold.”
The owners need a three-quarters vote (23 of the 29 owners) to strip Sterling of his franchise.
This all stems from recorded comments by Donald Sterling that were prejudiced (both in the interview with his former mistress and on CNN), combined with a racist history, which resulted in a wave of anger from fans and sponsors withdrawing their support from the Clippers. This is what the NBA had said previously about the charges.
The charge asserts that Mr. Sterling engaged in conduct that has damaged and continues to damage the NBA and its teams. Among other things, Mr. Sterling disparaged African-Americans and “minorities”; directed a female acquaintance not to associate publicly with African-Americans or to bring African-Americans to Clippers games; and criticized African-Americans for not supporting their communities.
Mr. Sterling’s actions and positions significantly undermine the NBA’s efforts to promote diversity and inclusion; damage the NBA’s relationship with its fans; harm NBA owners, players and Clippers team personnel; and impair the NBA’s relationship with marketing and merchandising partners, as well as with government and community leaders. Mr. Sterling engaged in other misconduct as well, including issuing a false and misleading press statement about this matter.
The mention of capital gains tax by Donald Sterling’s lawyer gets to the heart of the matter — in California the combination of state and federal taxes would force him to pay 33 percent of his profit on the sale in tax. He bought the team for $12.5 million more than 30 years ago, even if the team sold for $1 billion (and it’s expected to be higher, maybe much higher) that would be $333 million in taxes.
However, if Sterling holds on to the team until he passes (he is reportedly battling cancer) and the team goes to his relatives who sell it, they only pay capital gains on the difference between the estimated value at the time of his passing and the sale. That would be considerably less.
The league does not care.
They are moving ahead with their drive to force a sale. If the 29 other owners vote to terminate Sterling’s ownership, the league then takes over and sells the team (Sterling would get the profits from that sale). The league believes it has the right to do this because the Clippers are a a franchise and Sterling signed documents multiple times over the years agreeing to the league’s rules and bylaws. Most legal experts side with the league’s position.
Shelly Sterling is trying to say she will help sell the team, however as part of that she wants to keep a piece of the franchise as a minority owner — her identity is clearly largely tied to being the owner of the Clippers.
The league and its players will not tolerate that.
Expect the league’s owners to vote to terminate Sterling’s ownership of the team on June 3.
Expect the Sterlings to take this to court after that vote.
Expect this to continue to drag out. Because this is who the Sterlings are, this is what they do.
May 28, 2015, 1:49 AM EDT
Houston won 56 games, secured No. 2 seed in powerful Western Conference and won more playoff series than its previous 17 years combined
May 28, 2015, 12:39 AM EDT
The Warriors don’t care how it looked, they will take it.
Dwight Howard elbows Andre Iguodala but avoids flagrant foul and suspension – for now, at least (video)
May 27, 2015, 11:50 PM EDT
Rockets center elbowed Andre Iguodala high
May 27, 2015, 11:36 PM EDT
That sounds bad. Is that bad?
May 27, 2015, 11:15 PM EDT
“Hey!” -Kyrie Irving and Kevin Love, probably
May 27, 2015, 10:21 PM EDT
Will it stand?
May 27, 2015, 9:51 PM EDT
Who will it be (if anyone)?
May 27, 2015, 8:59 PM EDT
First Kobe, now Melo – Dudley goes scorched earth
May 27, 2015, 8:12 PM EDT
The Cavaliers are allowing 98.5 points per 100 possession in the playoffs, the best of the four teams to reach the conference Finals
May 27, 2015, 7:20 PM EDT
Will he become Anthony Davis’ next head coach?
Stephen Curry feels like there’s a bruise ‘all the way up and down’ his body, will likely wear arm sleeve in Game 5
May 27, 2015, 6:28 PM EDT
Warriors guard says he shot well with sleeve in shootaround
May 27, 2015, 5:35 PM EDT
If they want him gone, they just have to pull the trigger on the firing. Otherwise, bring him back.
May 27, 2015, 4:47 PM EDT
The Hawks had an exciting season, they filled an arena that in past years felt like a mausoleum, they played beautiful basketball for months at a time.
May 27, 2015, 3:59 PM EDT
May 27, 2015, 3:23 PM EDT
Free agents will still come to the Lakers, but their pool may be smaller than some other teams because of Kobe.
May 27, 2015, 2:30 PM EDT
There were plenty of rumors to the contrary.
May 27, 2015, 1:50 PM EDT
Suns don’t need any more young players.
May 27, 2015, 1:10 PM EDT
Plenty has changed since LeBron re-joined the Cavaliers last summer.
May 27, 2015, 12:30 PM EDT
Hawks, too, have some decisions to make this summer.
May 27, 2015, 11:50 AM EDT
The offers won’t be as strong as they were in December.
- Rockets had an excellent season. Are they content with that? 0
- Harden struggles, Warriors role players step up leading team to Finals for first time in 40 years 7
- Dwight Howard hit with suspension-triggering technical foul 5
- PBT Extra: Cavaliers’ improved defense helps them to Finals 7
- Reports: Bulls getting closer to firing Tom Thibodeau 23
- PBT Extra: Despite ending, Hawks had season worth celebrating 3
- Bucks’ Jared Dudley: “Most guys don’t want to play with Kobe” 63
- PBT Extra: Expect a healthy Stephen Curry for Game 5… sorry Houston 4