L.A. Clippers Owner's Racist Imperative

Donald has been banned from the NBA.

The NBA did the right thing. Now we wait and hopefully someone puts this dude out of his misery.

No, they're taking money from him because he most likely broke something in his NBA contract as being part of the organization. Players and coaches are often fined for criticizing refs after games because its against the NBA rules which they abide to follow.

His free speech isn't be impeded on. He's more than free to talk down the black people all he wants, however its totally legal for the organization to fine him (as far as it seems).

In no way shape or form is his first amendment right being infringed upon.

Alright, this entire issue is starting to piss me off.

First of all, Sterling was ALWAYS a 5-star asshole. Anyone who thinks this is newsworthy has obviously not heard of Sterling's notorious knack for doing and saying stupid shit. It was no surprise to me that he's racist, it's not that much of a jump for him.

Second of all, this issue has overshadowed the fact that this is one of the greatest first rounds in NBA playoff history. The Portland-Houston series has had three overtime games, the Pacers are one game away from losing to the Hawks, which would be one of the greatest upsets ever...

I'm tired of my local sports radio station and NBA analysts talking about this and NOT the fantastic games being played right now. At the very least, we should be talking about Jack Ramsey and the tremendous impact he had on the game. /rant.

I'm Black and even I don't wish death on this guy. That's just going too far, even in regard to a (non-violent) racist.

Same reason why white girls hooked with old rich white guys(or men in general)

I'm really surprised they actually banned him and are going to try to take the team away from him

Although this kind of enters a very odd argument about privacy/private actions and punishments.

No one deserves death for having an opinion.

He is the owner of a team which is a substantial part of a multi-billion dollar industry. His words had far reaching influence before he was banned and will less so if and when that vote is made in favor of forcing him to sell his team.

@lostrib said:

@jasean79 said:

Ooh, the liberal media just jumped on this one, didn't they?

Now if that had been a black owner saying that to his gf, it would've never had gotten publicized. True story. Makes you wonder then how much of this scenario really goes on behind closed doors that we never hear about?

Please, provide your sources

Really, bro? Do you not watch CNN, NBC, ABC, MSNBC news? "White on black" crime is always making headlines. "Black on white" crime, however, is rarely reported. Surely, you don't really need me to provide sources of this.

A reason why this might possibly be true is most victims of crimes committed by black people in America (of course) are black themselves. More importantly, I have to say that the United States is in a sad state of affairs if bigotry against black people has become accepted as merely part of one side of a political spectrum which I guess is supposed to be conservatism.

@lostrib:

You're really not too bright, are you? I already made my point. The reason this made headlines was because of what we just talked about. I used the example of the "race crimes" to try to bring you up to speed of where I was going with this, but you seem to be lagging behind a bit. Anyways, I'm bored with this now. Moving on...

Take it easy. Please refrain from using insults.

A multibillion dollar industry whose players are predominantly black

Donald Sterling just announced the Clippers new Home jerseys for next year...

@superclocked:

LMAO! Wow.

I hope the Warriors win.

I question that predominance. The sports industry includes basketball, football, and soccer. It also includes soccer, rugby, and hockey as well as many other sports.

I thought you just meant the NBA, which is a multi-billion dollar industry by itself with players being predominantly black

More notably DeJuan Blair got suspended for game 5

WTF Silver

I did at first, but then I realized that all sports can be considered as part of one industry. With respect to what you focused on, it is indeed played predominately by black people. I believe that if this were to happen with the owner of a hockey team, there would be similar consequences.

The Clippers weren't going to play if something didn't happen to Sterling. This comment is really unnecessary and kind of a dick thing to say.

he's pretty old, its common for old people to be racist. They just don't do it in public anymore.

@BranKetra:

"With respect to what you focused on, it is indeed played predominately by black people. "

lol, why you have to say it like that?

he's going to make a buttload of money selling the team, I heard he might fetch as much as $1 billion in the sale of his interest in it

I am not sure what you are referring to. I hope I am not posting verbosely.

@BluRayHiDef: I remember when we lived in a time when extortion was illegal.

Here it goes, for the uninitiated (regarding the fine and the suspension):

----------------------------------------------------------

Silver has broad authority under the NBA's constitution and bylaws to suspend and fine an owner for conduct detrimental to the NBA. According to Silver, Sterling admitted it was his voice on the recording in which he made racist remarks. Even if the recording was unlawfully created under California law -- the recording would likely be unlawful if the conversation was confidential and Sterling didn't give consent -- Silver is authorized to punish Sterling based on the recording's impact on the league. It is safe to say that Sterling's comments, which elicited the rebuke of President Barack Obama, have deeply harmed the NBA and its relationship with players, sponsors and fans. Sterling seems to lack a viable argument that his conduct was not seriously detrimental to the NBA.

Sterling is also disadvantaged in challenging the suspension and fine because of how a court would treat such a challenge. A court would review Silver's decision under the deferential "arbitrary and capricious" standard of review. This standard would essentially require Sterling prove that the NBA -- and specifically Silver, acting as the NBA's ultimate arbiter -- failed to follow its own rules in how it investigated Sterling and punished him. For instance, if the NBA failed to authenticate the recording, concealed evidence or not requested a meeting with Sterling, Sterling might have sufficient grounds. Silver's remarks during the press conference, however, suggest all relevant rules and policies were followed. Absent Sterling proving there was a procedural defect of serious importance, Sterling likely has no viable appeal to either the fine or suspension.

.........................

The fine of $2.5 million may seem inconsequential given that Sterling is worth reportedly $1.9 billion, but it was the highest amount of money permitted by the league's constitution and bylaws. Had Silver issued a higher fine, and justified it on policy or moral grounds, he would have provided Sterling with an opportunity to raise a legal point. Specifically, Sterling might have argued such a penalty is "arbitrary and capricious" because it would not have followed NBA rules. Silver, an attorney, wisely adhered to the rules instead.

Sterling, NBA set for epic legal fight over Clippers

As for the sale of the team and taxes:

---------------------------------------------------------

Sterling, who is 80 or 81 years old (his exact birthdate remains a mystery), has a key financial reason to fight the sale of the Clippers: to avoid capital gain taxes. This insight is from Robert Raiola senior manager in the Sports & Entertainment Group of the Accounting Firm O'Connor Davies, LLP. Sterling reportedly purchased the Clippers for $12.5 million in 1981. If he sold the team today, it would be worth at least $600 million, perhaps closer to $1 billion. Between federal and state capital gains taxes, Sterling would pay an approximately 33 percent tax rate on the difference between what he paid for the team and what he sold it for. For instance, if he sold the Clippers today for $1 billion, Sterling would pay capital gain taxes of 33 percent on a gain of $987.5 million. As a result, Sterling would owe Federal & state capital gain taxes of approximately $329 million.

If instead Sterling holds onto the Clippers and some time from now passes away, his family would inherit the team. The family would inherit the team with a value pegged to its fair market value. As Raiola stresses, the new value of the team would be crucial for purposes of capital gains tax. Here's why: if the family inherited the Clippers and then sold it, they would only pay a capitals gain tax on the difference between the value of the team when they inherited it and the value of it when sold. For instance, if the family inherited the team and it was worth $700 million and then they sold it for $800 million, they would only pay capital gain taxes on a gain of $100 million. In that instance, there would be a comparatively modest tax bill of $33 million.

If the Sterling family inherited the Clippers and simultaneously sold it, Raiola tells SI.com, they would pay no capital gains tax, but still have estate tax issues. However, a transaction could be structured whereby the employees of the Clippers organization could own a percentage of the team. In such case, the capital gain taxes on a sale could be partially or fully avoided.

These tax considerations make it more likely that Sterling will fight the NBA to hold onto the Clippers. Even if he ultimately loses a legal battle, the process of losing could take years to play out in court. At the risk of sounding macabre, Sterling may be motivated to wage a protracted legal battle in order to keep the team for as long as he lives.

Important family law considerations: what if Mrs. Sterling files for divorce?

Sterling and his wife, Shelly, are reportedly estranged but not divorced. One potential legal complication for the NBA would be if Mrs. Sterling filed for divorce before the NBA terminated her husband's ownership of the Clippers. California is a "community law" state, which means Mrs. Sterling would likely be entitled to half of her husband's assets. One of his key assets is obviously the Clippers. Mrs. Sterling could potentially use divorce court proceedings to slow down the NBA's ouster of her husband, as she would have a vested stake in any sale of the Clippers.

http://sportsillustrated.cnn.com/nba/news/20140429/donald-sterling-nba-adam-silver-clippers-lawsuit-lifetime-ban/#ixzz30MLxuaTi

@thegerg:

It's not just the recording. It's the last 30 years of him running that team into the ground and his history of being a racist bigot.

He's bad for the league and bad for the Clippers. The recording was just the cherry on his shit sundae. Sorry, too much Trailer Park Boys.

Commissioner Silver said that only the recording was taken into consideration when determining Sterling's punishment.

This is why marriage is for fools.

I get that but it makes a lot harder for anyone to feel sorry for him when he might be the worst at his job ever. You could say they were just waiting for a reason.

Maybe they got tired of waiting.

There have been much more horrible things done by NBA personal that have gotten slaps on the wrist. This punishment does not seem to be inline with that.

@thegerg: They look good now but for the last 30 years they have been irrelevant to any playoff discussion. Maybe a fine would motivate him into managing better so the fans and players don't suffer but regardless we both know that isn't what he's getting fined for.

He's also made himself quite wealthy off plenty of black men. Your point is valid though, it's hard to condemn a man for his beliefs and opinions when he himself never took them public. But if its for the greater good of the team, players, league and fans then that would that make it more justifiable?

The guy's not worth defending anyway and upon selling the team I'm sure he will be set for like granted his estranged wife doesn't end up with half.

@Master_Live: And you know he'll fight in court for it, check this out:

Sterling played his quintessential cheap trick in San Diego in 1981, just after he bought the team. As a goodwill gesture, he invited prominent lawyers and real estate agents to have lunch, meet the players and enter a foul-shooting contest: Win and take home a $1,000 prize. Among the attendees was lawyer Michael Spilger, captain of San Diego State's 1969-70 basketball team. Spilger made nine of 10, only to be told the offer had been rescinded. The new prize was five days and four nights in Puerto Rico. "There was one catch," says Spilger. "The deal didn't include airfare, transportation or food. I'd have to pay my own way." So Spilger told Sterling he'd take the $1,000. He remembers Sterling countering, "How about double or nothing?"

"No thanks, I'll take the $1,000."

Next, according to Spilger, Sterling asked if he'd settle for two season tickets, and Spilger said, "I already have some." So Sterling promised him that the team's promotions department would work things out. Two weeks later, Spilger got a letter congratulating him for winning the top prize: Three days and two nights in Las Vegas. Unpaid but unbowed, Spilger sued the Clippers for fraud. At the home opener in '82, a team official tracked him down and offered a compromise: a $1,000 donation to his favorite charity. "I'll see you in court," said Spilger. Two days later—and more than a year after he sank his free throws—he got his money.

^ This ladies and gentlemen, is Donald Sterling.

lulz. Agreed.

Marriage is not for fools. Being wealthy and marrying without a pre-nup is for fools!

Eh the fine is alright, but the ban? Honestly while he was a ass with those remarks, I find all this pretty harsh over what was a private remark at his home. Also lol at Stiviano who all sad and devastated, even through she still recorded the damn conversation.

one could argue that people elected Obama mostly because he was black, that had he been a white senator who only served 3/4 of a term he would have never gotten much traction, and that that could be in itself racist.

There's a strong correlation between wins and profitability. Fans pay to see a winning team.

Sterling is a shit owner, the Clippers have only had 5 winning seasons since he became owner in 1981.

America and the west are pathetic.

I'm so glad Putin is stepping all over you and nobody respects you

Sure, but that's an awfully trivial statement. An owner's goal is to maximize attendance, and you do that primarily by winning games.

Nowhere did I suggest otherwise. In order to maximize profits you need to maximize attendance. You aren't taking full advantage of the potential profitability of your team if there are empty seats in the stands.

Any other trivial remarks?

Which comes from winning games. Teams get bonuses for just making the playoffs, playoff wins, conference titles and championships of course.

Also global awareness. The NBA is a global league, in many respects, and people like winners. How many people around the globe were wearing Clippers gear as of '11-'12? When Stern kiboshed the Paul to Lakers deal, they became a perennial playoff contender. Thus increasing their global brand.

As evident on/in Forbes.

2010 franchise value.

2013 franchise value.