Who's Going To Buy The Clippers

[CosmicCowboy]

Even if there may not be a particular provision of the Cons ution/ByLaws that can support a forced sale, but the owners of NBA teams and other parties can certainly find ways to make ownership of the team seem undesirable to Sterling in the short term (the withdrawal of sponsors has already begun) and his team will almost certainly struggle, for as long as he owns the team, to sign and retain quality players, which will significantly affect the bottom line for Sterling.

He can fight it all he wants, but I don't see how this ends well for him, particularly since I'm not sure that a franchisor is obligated to remain in business with a franchisee it deems undesirable, which unquestionably describes the relationship between the NBA owners and Sterling at the moment.

I agree they can make it uncomfortable but at his/her age there is a huge capital gains hit if it sells before they die. They can lose 100 million dollars operating it and still come out +150 million passing it to the kids.

[ElNono]

I agree they can make it uncomfortable but at his/her age there is a huge capital gains hit if it sells before they die. They can lose 100 million dollars and still come out +150 million passing it to the kids.

Which is why he should broker a deal with the NBA to transfer ownership of the franchise to a trust managed by his wife/kids. In other words, he promises/file transfer papers with the league under the condition that the owners do not strip him of ownership of the team. Then the owners can vote down the stripping of ownership and vote up the transfer.

It's obviously speculation on my part, but that would actually prevent a sale, keep the franchise in the family, probably avoid a good chunk of taxes and remove him from the picture, which I think it's a big part of what the league really wants.
He has more then enough income coming from his real estate business to live a fancy life for whatever he has left, so IMO, him fighting this has a lot more to do with his pride than anything else.

[CosmicCowboy]

An estate attorney would have to chime in but my understanding is you can't accelerate the cap gains basis just by transferring it to a trust. Right now his basis is 12 million. After he dies and it passes to his kids it passes at the current value basis at that time of 850 million+ shielding the 838+ million difference from cap gains tax. Again, not being an estate tax attorney I think they may then be shielded from having to pay the 35% estate tax until it sells? Maybe FWDT can answer that question. I know some big ass ranches in Texas have had to be broken up over estate tax issues.

[baseline bum]

his team will almost certainly struggle, for as long as he owns the team, to sign and retain quality players, which will significantly affect the bottom line for Sterling.

That is how Sterling has ran his franchise for most of 34 years now, paying absolute minimum and making money off the fact that
(1) he is in a market of 18 million people to sell TV rights and overpriced tickets to even though the team is hopeless
(2) he'll get a cut of the luxury tax penalties paid by the big spending teams for being under the tax level

His bottom line was pretty healthy retaining and signing no one.

[CosmicCowboy]

That is how Sterling has ran his franchise for most of 34 years now, paying absolute minimum and making money off the fact that
(1) he is in a market of 18 million people to sell TV rights and overpriced tickets to even though the team is hopeless
(2) he'll get a cut of the luxury tax penalties paid by the big spending teams for being under the tax level

His bottom line was pretty healthy retaining and signing no one.

Plus he gets the same split of the league TV money everyone else does. Sterling got fat for many years being the stingiest owner in the league. The lottery was guaranteed to give him young exciting players he paid peanuts who were stuck in Clipper until they were finally able to become free agents.

[FuzzyLumpkins]

You aren't very smart, are you?

You are incapable of articulating an argument. Do you not think that the NBA in the last 80 years of it's existence has no civil rights resolution? I don't know but information we are not privy to holds the answer as we are limited on what corporate do ents from the NBA we have access to view or search.

The charter clearly states the mechanism and required cause. Thus me saying if said cause exists then there is a basis for said vote. Go ahead and continue to try and apply the bull you have come up in your estate planning to this situation with your typical hubris.

[FuzzyLumpkins]

If the NBA has passed a resolution regarding civil rights then Sterling has problems. He is on tape telling his assistant to not bring black men to games.

Sure. I wouldn't be stunned if there was an anti-discrimination resolution or rule somewhere along the line already was my point.

You aren't very smart, are you?

I wanted to revisit this. This is from ESPN:

While the league's cons ution, publicly revealed for the first time by the league last Tuesday, made it clear that grounds exist to remove an owner if that owner "fail(s) or refuse(s) to fulfill its contractual obligations to the Association," it remained unclear what contracts Sterling might have violated when he made his racist statements in a private conversation with his mistress V. Stiviano that was later published by TMZ.

But sources with knowledge of the league's strategy say there are, in fact, actual contracts that it will maintain Sterling violated should he choose to fight the league's desire to force him to sell the team if the league can get the required 75 percent of owners to agree to make the move.

One of those do ents, which Sterling signed when he first bought the Clippers in 1981, and signed various amended versions since, states that an owner will not take any position or action that will materially and adversely affect a team or the league. Owners also sign morals clauses, which state that they will be upheld to the highest standard of ethical and moral behavior.

When morals clauses are enacted and result in termination of agreements, including endorsement deals, the courts are often charged with interpreting who was right, but sources with knowledge of the NBA's legal strategy believe that they have enough to force Sterling to sell.

http://espn.go.com/los-angeles/nba/s...-owner-emerges

So in the future when you are wondering who to listen to between me and CC keep in mind that he is normally simply bluster. I do think it is hilarious how he tries and apply his Texas estate planning with Sterlings situation. Bluster and hubris: the CC way.

[MannyIsGod]

Looks like he's going to sell according to ESPN. I guess he realizes he doesn't have much of a legal case.

[boutons_deux]

Tarnished Sterling and his wife have a long history of suing everybody, even when the law and facts are not on their side, just to delay judgement, payment, etc.

[CosmicCowboy]

I wanted to revisit this. This is from ESPN:



http://espn.go.com/los-angeles/nba/s...-owner-emerges





So in the future when you are wondering who to listen to between me and CC keep in mind that he is normally simply bluster. I do think it is hilarious how he tries and apply his Texas estate planning with Sterlings situation. Bluster and hubris: the CC way.

Little early for a victory lap dumbass. Doesn't surprise me that you go to ESPN for legal analysis, though.

Stupid little .

[boutons_deux]

NBA unswayed by Sterling's offer for wife to negotiate Clippers sale


http://www.latimes.com/sports/sports...523-story.html

[FuzzyLumpkins]

Little early for a victory lap dumbass. Doesn't surprise me that you go to ESPN for legal analysis, though.

Stupid little .

I say something and you insult me with a blanket dismissal. I show evidence that supports my initial report using the exact same reasoning I did and you now bluster.

Victory? You should have just let it go. The mechanism exists in the corporate charter and there are morality and "best interest of the league" clauses that he signed. It is what it is and acting like a preadolescent isn't going to change that.

[CosmicCowboy]

I say something and you insult me with a blanket dismissal. I show evidence that supports my initial report using the exact same reasoning I did and you now bluster.

Victory? You should have just let it go. The mechanism exists in the corporate charter and there are morality and "best interest of the league" clauses that he signed. It is what it is and acting like a preadolescent isn't going to change that.

Like I said, little early for a victory lap dumbass. And I insult you with a blanket dismissal because you are a ty, arrogant ill informed little troll.

[CosmicCowboy]

In fact, this is hilarious. You find an article from a sportswriter who refers to unnamed sources who "think" the NBA may have enough in a morals clause to try to force a sale. Wow, now that is some earth ing shattering news from some rock hard sources. Dribbling pee in your pants like an excited little puppy you rush back in here, reopen this thread and declare victory that the NBA is going to force Sterling to sell and pompously advise the other posters in here that they should listen to YOU in the future...



pathetic little piece of ...

[boutons_deux]

Donald Sterling Is Said to Agree to Let His Wife Sell Clippers


http://mobile.nytimes.com/2014/05/24...?from=homepage

[CosmicCowboy]

Donald Sterling Is Said to Agree to Let His Wife Sell Clippers


http://mobile.nytimes.com/2014/05/24...?from=homepage

[boutons_deux]

nah, I read Tarnished is all about cash flow, and the $100Ms of cash will be flowing to him from the sale.

[CosmicCowboy]

He is a smart guy. If he can get Oprah and friends to overpay to "get rid of the racist cracker" he may sell because the timing is right and he makes boocoo money. I guarantee he won't be railroaded into a fire sale by the NBA even IF they could get 75% of the owners to agree to pursue that angle (which I don't think they can).

[FuzzyLumpkins]

In fact, this is hilarious. You find an article from a sportswriter who refers to unnamed sources who "think" the NBA may have enough in a morals clause to try to force a sale. Wow, now that is some earth ing shattering news from some rock hard sources. Dribbling pee in your pants like an excited little puppy you rush back in here, reopen this thread and declare victory that the NBA is going to force Sterling to sell and pompously advise the other posters in here that they should listen to YOU in the future...



pathetic little piece of ...

You go on this salt binge and you call me pompous? Perhaps if you bluster harder in your next response you won't look like such an insecure .

The article cited a morals clause and a best interest of the league contract that he signed when he bought the team in the 1980s and signed multiple revisions since. There was no 'may' about it.

Does it burn that much that I am right and you are wrong?

Wait, there is an opportunity here for you to double down on your stupidity. What do you want to bet that in the hearing here in a couple of weeks that the owners execute what we have been talking about here?

[CosmicCowboy]

LOL Fuzzy thinker

LOL 'morals clause"

LOL at this stupid pissant thinking this is gonna be over in two weeks if Sterling doesn't want it over.

dumbass.

[ElNono]

Sterling will sue the NBA and win. They can't legally do what they just did.

I called the deal to transfer to his wife... we'll see if the NBA is interested.

[FuzzyLumpkins]

LOL Fuzzy thinker

LOL 'morals clause"

LOL at this stupid pissant thinking this is gonna be over in two weeks if Sterling doesn't want it over.

dumbass.

That Tokowitz can sue after the fact is besides the point. You started off saying that they did not have grounds to remove him which is false. If he signed a contract citing best interest of the league and morality clauses then he is ed. It's the downside of operating in a trust. Contracts are contracts and he did tell his employee to discriminate by race.

Nice little monkey dance in place of an intelligent approach though.

[ElNono]

[CosmicCowboy]

Sterling's laugh all the way to the bank. Get an extra billion for the team because of the moral outrage publicity...

www.latimes.com/sports/la-sp-sn-clippers-sale-ballmer-20140529-story.html

Former Microsoft chief executive Steve Ballmer has won a frenetic bidding war for ownership of the Los Angeles Clippers, with a $2-billion offer that would set a record price for an NBA team.

[boutons_deux]

Sterling's laugh all the way to the bank. Get and extra billion for the team because of the moral outrage publicity...

www.latimes.com/sports/la-sp-sn-clippers-sale-ballmer-20140529-story.html

and no doubt he won't pay any where near the full capital gains rate.