Microballing: Steve Ballmer's LA Clippers

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MakMan44

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DrewDawg said:
 
Huh?
 
He's apparently agreed not to fight the sale. That's a big deal.
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There are contingencies in the agreement, a second person with direct knowledge of the situation told USA TODAY Sports. Shelly Sterling has agreed to sell the team as long as she retains a minority interest in the Clippers, according to the second person, who also requested anonymity because he was not authorized to speak publicly about the negotiations.
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http://www.usatoday.com/story/sports/nba/clippers/2014/05/23/donald-sterling-shelly-sterling-agree-to-sell-clippers/9485681/
 
Average Reds

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OK, so this was all about trying to cut a deal - if you let me (us) keep a minority stake, we won't contest anything.
 
Don't think it would wash with the players or with Silver, but points for the effort.
 
Brohamer of the Gods

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The counter could be that the divorce proceedings actually begin and Shelly's lawyer files to block the sale of a commonly held asset until the divorce is settled. Not sure the NBA wants to fight that one, or wins it.
 
wutang112878

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I dont understand their motivation for the minority share.  Sterling himself wont be allowed at games, the family wouldnt be involved in any decisions so that just leaves them getting courtside seats and the opportunity to marvel over the bodies in the lockerroom? 
 
Average Reds

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Brohamer of the Gods said:
The counter could be that the divorce proceedings actually begin and Shelly's lawyer files to block the sale of a commonly held asset until the divorce is settled. Not sure the NBA wants to fight that one, or wins it.
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Given that she is covered by the NBA's order to sell, I don't see how a divorce action would block the sale.  The only thing that would be held up would be the allocation of proceeds.
 
DJnVa

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So, apparently Sterling is choosing the nuclear option. Should be interesting.
 
http://www.usatoday.com/story/sports/nba/clippers/2014/05/27/donald-sterling-letter-privacy-los-angeles-lawsuit-ban/9646707/
 


Los Angeles Clippers owner Donald Sterling says the NBA is unfairly singling him out and slamming him with "draconian" punishment, all prompted by the leak of a private conversation he claims was illegally recorded.
 
Sterling's attorney, Max Blecher, told USA TODAY Sports late Tuesday that Sterling is not interested in selling the Clippers.
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In a scathing 32-page response sent to the league Tuesday and obtained by USA TODAY Sports, Donald Sterling instead says he will fight the league's move to force him to sell his team
 
"A jealous rant to a lover never intended to be published cannot offend the NBA rules," said the document, signed by Sterling.
 
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DJnVa

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soxhop411 said:
Perhaps not?
“@ramonashelburne: Donald Sterling's attorney sent a letter to the NBA May 22, telling the league he has authorized Shelly to sell the team.”
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But now he's disavowing that apparently. His lawyers sent another letter yesterday saying he's fighting.
 
ElUno20

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Thinking about it. This seems like a coordinated plan of attack. Threaten action in hopes the league goes along with shelly trying to sell the team
 
soxhop411

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DrewDawg said:
 
But now he's disavowing that apparently. His lawyers sent another letter yesterday saying he's fighting.
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But if she has in writing that DTS authorized her to sell the team. How can he fight it now. Isn't that kind if binding?
 
DJnVa

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soxhop411 said:
But if she has in writing that DTS authorized her to sell the team. How can he fight it now. Isn't that kind if binding?
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Sure, in a normal proceeding it would be. However, he can claim he was under duress. He can claim a bunch of things. He's a litigator, that's what he does.
 
soxhop411

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Prospective owners of the Los Angeles Clippers face a deadline of 5 p.m. New York time to submit their bids for the National Basketball Association team, according to three people with direct knowledge of the situation.
The people asked not to be identified because the process isn’t public.
Clippers co-owner Shelly Sterling, wife of managing partner Donald Sterling, who was banned by the NBA for making racist statements, has been presiding over the sale.Bank of America Corp. was retained to assist, people familiar with the process said. The NBA must approve any transfer of ownership.
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http://www.bloomberg.com/news/2014-05-28/clippers-bidders-said-to-face-end-of-day-deadline-for-offers.html
 
dcmissle

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Cagily worded on Rovell's part. Reporting at this point no more reliable than Lucy holding the football.

They can "name" whoever they please. Until we have reliable evidence that Sterling is not fighting, I'm not getting excited.
 
Rovin Romine

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A series of bids would establish the market value of the team (sold in haste).
 
I wonder what Sterling will do with that information; refuse to sell and litigate?, sell and litigate?  
 
simplyeric

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soxhop411 said:

 
Tara Wallis ‏@tarawallis  now
#breaking Sterling sites breach of contract, antitrust violations, & wants jury trial. #clippers #NBA @ChristinaKTLA pic.twitter.com/jSa0FCRQuW
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What's his end goal?  Is he suing for damages, or suing to retain ownership/control?
If it's damages, then I can see that:  get any extra money out of it that you can, even if you have to sell the team.
 
If it's about ownership, can he win that battle?  Seems like the NBA has almost no leeway to fold on that issue, at this stage.  It's not like he's going to be able to just "threaten" them into backing down.
The harder the NBA fights to enforce their decision the better the PR is for them, and the worse for Sterling and the Clippers brand the more he fights, no?
 
Kremlin Watcher

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If the story about the missus receiving valid bids is accurate, then judging by the text of that complaint, it would appear that he is suing for damages, presumably to the value of his ownership stake in the Clippers. That part of the suit is probably not a difficult argument to make - with a new TV contract and improving fortunes on the court, one can easily imagine that the team could be substantially more valuable in three to five years. In forcing him to sell now, the NBA is damaging him materially. The harder part of the argument is proving the numbered charges. So if he can't prove the numbered charges, the damages part will be irrelevant.
 
I would have also thought that the prospect of a long and expensive lawsuit would make most genuine buyers nervous; what if Sterling decides to sue the buyer for contributing to the damages by "underpaying" for a team that will in all likelihood be more valuable in some period of time that Sterling would have otherwise owned the team?
 
It seems like he doesn't have a lot of good arguments on his side, but what weapons he does have he seems to be using.
 
soxhop411

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Donald Sterling is the most hated man in America.
 
Donald Sterling isn't just disliked, he's the most hated man in America.
 

 

That's according to the results of a poll by E-Poll Market Research that was released on Thursday.
The company said that, out of the people that were familiar with the Los Angeles Clippers owner, 92 percent said they disliked him. In the impressionable 13-24 year old male demographic, 97 percent disliked him, according to the poll.
Sterling beat out Ponzi schemer Bernie Madoff, who is disliked by 90 percent of the population, OJ Simpson (88 percent), Michael Jackson's doctor Conrad Murray (88 percent) and Justin Bieber (86 percent). Former New England Patriots tight endAaron Hernandez, who pleaded not guilty to two first-degree murder charges on Wednesday, finished seventh on the list.
"Donald Sterling made these callous statements and then he has more than doubled down on them since then," said Jerry Philpott, president and CEO of E-Poll, which said it polled 1,100 people between 13-49 whose demographics were representative of the U.S. population.
To put Sterling's numbers in perspective, Philpott said the athletes in their database are disliked by an average of 15 percent of the population.
Sterling said this week that he would fight the NBA's attempt to kick him and his ownership group out of the league for his racist comments, despite the fact that he gave written permission to his wife Shelly to sell the team. She has hired Bank of America, has taken bids and is trying to wrap up the sale before the NBA Board of Governors could unseat the Clippers ownership group on June 3.
If Sterling sues and ties up the sale or if a deal can't be consummated, league officials have said it will take over the sale.
Donald Sterling bought the team in 1981 for $12.5 million. Bids have come in for well over $1 billion.
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http://espn.go.com/los-angeles/nba/story/_/id/11001769/donald-sterling-disliked-92-percent-america-according-poll
 
soxhop411

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Devizier said:
 
That's pretty much what Clay Bennett was saying when he bought the Sonics.
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do not think the NBA will approve the owner if the plan is for the new owner to move them
 
LoneWarrior1

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Can Sterling file / win an injunction blocking the sale of the team until his case is heard? If so, is it possible that Sterling could still own the team at the start of the next season?

Given his wealth and age, I'd doubt Sterlin's play here is about the money. I would venture a guess that it's more about control, which ideally you'd have more of as income increases, but he can't buy his way out of this one and get his way. The only other factor is his social circle. Will he be allowed to associate with the same groups as before if he does not go quietly into the night? If be can maintain his friends and fight, he will. If his access shrinking due to the bad press, I can see hm backing off. Otherwise, he doesn't havemuch to lose.
 
dcmissle

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soxhop411 said:
If this is a "damages" lawsuit it has no chance right? given what he just got for the team?
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You can pay an expert to say almost anything, but I have a very difficult time seeing any substantial damages. And it almost does not matter what his expert says. The League will demand a jury trial, and the guy is a pariah.
 
Kremlin Watcher

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He sold for more money than any franchise in NBA history. It will be very, very difficult for him to prove damages. The best he can probably do is demonstrate the tax hit he takes versus the tax hit his heirs would have taken had he been allowed to gift the team to them. I have a difficult time imagining a sympathetic a judge and jury.
 
dcmissle

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The owners will not vote on kicking him out of the League. The owners' meeting to do that has been cancelled. The NBA has declared the sale effective, pending approval by Board of Governors.

So as noted in companion thread, the lawsuit will have nothing to do with the sale.
 
Tony C

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This story is going away a lot faster than a lot of people predicted.
 
TheGazelle

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Section30 said:
It looks like he passed go and will collect his $2 billion tax free
 
http://www.forbes.com/sites/robertwood/2014/06/04/donald-sterlings-last-laugh-tax-free-2-billion-clippers-sale/
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That article seems to say that Sterling will pay about $600MM in taxes, but might not if the sale is considered an involuntary transfer.  I know nothing about tax law, but I can't see either the IRS or California agreeing with an interpretation of the tax code that classifies a $2B sale (with multiple bidders) as an "involuntary transfer." 
 
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