Donald Sterling

Lawmakers want to prevent Donald Sterling from deducting NBA’s $2.5 million fine from his taxes


The NBA calls its financial penalties “fines,” but they’re really forced charitable donations. They’re also, as Lamar Odom successfully argued to the IRS, business expenses.

You can bet Donald Sterling will try to write off his $2.5 million fine on his taxes.

On both the federal and state levels, lawmakers want to prevent that.

Kay Bell of Don’t Mess With Taxes:

Any deduction is just not right, say six House Democrats. So they’ve introduced the Stop Penalizing Taxpayers for Sports Owner Fouls Act of 2014.

The bill, which would apply to fines since Jan. 1, says:

In the case of an individual who owns (directly or indirectly) a professional sports franchise, no deduction shall be allowed under sub- section (a) for any fine or similar penalty paid to the professional sports league or association of which the franchise is a member.’’.

This would apply to Sterling – and was obviously proposed with him in mind.

As unsympathetic as Sterling is, I just don’t believe this law would be constitutional. If passed – which I suspect is unlikely to happen anyway – the courts could deem it ex post facto. In other words, the law punishes for acts committed before the law passed, usually a method not allowed in the United States.

Plus, I don’t like further complicating an already far-too-complicated tax code with a specific rule that singles out sports owners. Why should sports owners have their own tax code? What makes them different than the rest of us? (Yes, I’m against stadium subsidies, too. Don’t fix that problem by creating another.)

California lawmakers are proposing something similar. Phil Willon of the Los Angeles Times:

Two state Assembly members from Los Angeles filed legislation Tuesday that would prevent sports team owners from writing off league fines as a business expense when they file their state income tax returns.

The bill was filed by Democratic Assemblymen Raul Bocanegra of Pacoima and Reggie Jones-Sawyer of Los Angeles.

“Donald Sterling’s outrageous comments and historic fine should not be rewarded with a multimillion-dollar tax refund,” said Bocanegra, who chairs the Revenue and Taxation Committee. “This fine is intended as a punishment; it should not be used as a tax loophole.

The specifics of this bill are not clear, but I have the same concerns stated above.

At least one politician, though, might be on the right track – actually using the Sterling situation to do good. Willon:

Meanwhile, Rep. Brad Sherman (D-Sherman Oaks) has asked city, state and federal regulators to “prioritize” inquiries into any allegations that Sterling’s companies engaged in racial discrimination against people who sought to rent apartments at the billionaire’s residential properties.

In a letter to the regulators, Sherman cited a payment of more than $2.7 million that Sterling made in 2009 to settle federal claims that he discriminated against tenants. Sherman’s letter did not say there were allegations pending against Sterling or his companies.

If there aren’t new allegations against Sterling, it would be difficult to do much now after he’s settled, but yeah, the government should definitely be further investigating Sterling’s alleged housing discrimination. While they’re at it, apply that level of scrutiny to everyone – not just the headline-inducing Sterling – suspected of housing discrimination. That actually matters.

Report: Phil Jackson would have taken Okafor over Porzingis. Duh.

New York Knicks Draft Picks Press Conference
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Of course he would have — 29 other GMs would have as well.

Jackson also seriously would have considered trading the No. 4 pick if the right package of picks — including Brooklyn’s unprotected pick from this season — were part of the package. Again, that’s not a surprise or even a poor decision.

But in New York, which has fallen in love with the guy they used that No. 4 pick on in Kristaps Porzingis, that idea has become news, especially in the wake of No. 3 pick Jahlil Okafor‘s recent run of off-the-court issues. Here is the report, via the New York Post.

According to an NBA source, as much as Jackson’s top adviser, Clarence Gaines Jr., wanted Jackson to take Porzingis even if the Knicks had the No. 1 pick, that wasn’t the way the Zen Master would have gone if it was a choice between the two big men.

Okafor was Jackson’s man.

“He had to draft Okafor — too much a sure thing,’’ the source said.

Again, 29 other GMs would have done the same thing at that time. Now, maybe it changes, but at the time anyone who tells you differently is selling something.

It’s not that some of those GMs (and certainly some of their scouts) didn’t think Porzingis could develop into an excellent NBA player, but he was considered a higher risk pick than Okafor, who is averaging 17.5 points a game for the Sixers and looks like a franchise cornerstone player. Maybe Porzingis had a higher ceiling, but Okafor had a way higher floor. If your job is on the line with a draft pick, you think about the floor.

Has Okafor had some incidents off the court? Obviously. He’s a 19-year-old making decisions that put in situations where bad things happen. That’s correctable. We all made stupid decisions when we were 19, just most of us grew out of them. (Well, if you ask my wife whether I did or not…) He likely will to, his handlers are already making significant steps.

Zach Lowe at Grantland said that the Knicks did consider trading the pick, but the deal never came close to fruition.

The Celtics were hell-bent on moving up to draft Justise Winslow, and offered the Hornets four first-round picks — including one of Brooklyn’s unprotected picks — for Charlotte’s No. 9 pick. But that was Boston’s fall-back plan, sources say. Boston initially chased Charlotte’s pick with the idea of sending it to the Knicks, along with Boston’s No. 15 pick, to vault all the way into New York’s draft slot — where they would take Winslow. Charlotte refused Boston’s pitches, and the scenario died. The Knicks downplay their interest in Boston’s offer, though it’s fascinating to consider how the draft might have played out — and which fan base would be chanting “POR-ZIN-GIS!” today — had the Celtics swooped in for Winslow at No. 4

“We listened,” Mills says. “But we were never close.”

Now, looking back at it, Knicks fans wouldn’t trade any of it.


Pistons’ Reggie Jackson fined $25,000 for what he told OKC heckler

Reggie Jackson, Shane Larkin
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Reggie Jackson, now the starting point guard for the Detroit Pistons, returned to face the team that drafted him last weekend, the Oklahoma City Thunder. The reception was chilly, to put it kindly. Both from the players and the fans.

Jackson responded to one of the heckling fans with an indecent suggestion (if you want to see the incident, you can, but it’s NSFW) and that has earned him a $25,000 fine from the league. The punishment was sent down by Kiki VanDeWeghe, Executive Vice President, Basketball Operations.

This shouldn’t be a surprise, the league has a pretty clear policy that fans pay the freight and can say nearly anything to players (it is up to the discretion of security at the arena, teams can ask to have fans removed if needed), and the players have to take it. Answer them with better play on the court.

Jackson has had a good season for the Pistons averaging 19.1 points and 6.7 assists a game, showing a real chemistry with Andre Drummond. He is part of the reason the Pistons look like a potential playoff team this season and are on the rise in the East. But the Thunder got the best of him that night (Jackson shot 4-of-16 and was -19), and so did a fan.

NBA: Warriors wins credited to Steve Kerr, Luke Walton can win awards

Luke Walton

Later on Tuesday it will be announced that Warriors interim coach Luke Walton is the NBA Coach of the Month for November. (That’s not official yet, but seriously who else is going to get it?)

Yet Luke Walton’s record will remain 0-0 as a head coach. Those record 19 wins to start the season belong to Steve Kerr.

The league clarified its position to the media on Tuesday with a release:

…the head coach of record is credited with team wins and losses.  Steve Kerr remains the head coach of record for the Golden State Warriors and is credited with those results.  Additionally, any team head coach, interim head coach or acting head coach is eligible to be recognized with league coaching awards.  Therefore, Warriors interim head coach Luke Walton is eligible for NBA Coach of the Month.

The logic is that the systems installed in Golden State were put in place by Kerr, and while Walton has managed games he is not the overall architect of their success. Which is true. With all due to respect to what Walton has done Kerr laid the foundation for this team, Walton has managed it this season. He hasn’t crashed the car.

There still is no official timeframe for Kerr’s return from his back issues. He is around the team at the practice facility all the time, but is not coaching games or traveling with the team consistently.

This performance will be a significant step toward Walton getting job where his wins and losses will count on his permanent record soon enough.

Clippers’ Chris Paul exits game with “rib muscle strain” may miss time

Chris Paul, Gerald Henderson, Mason Plumlee, Al-Farouq Aminu, C.J. McCollum

It happened in the third quarter, although it’s not clear exactly how. All anyone saw was Chris Paul calling a timeout to remove himself from the game (an eventual Clippers’ victory over the Trail Blazers) and grabbing his left side.

After the game, the Clippers said that Paul had suffered a “rib muscle strain.” CP3 will be re-evaluated on Tuesday, and then a timetable for his return will be set. It looks like he could miss a little time. Since the term “rib muscle strain” is intentionally vague we’re left to speculate a little: This could be an oblique muscle strain and if so they can be tricky, and it takes a couple of weeks (or more) to get back.

The Clippers might be wise to give Paul a little time away from the game; he has battled through a fractured finger and a strained groin this season. A little time off could help all of this. Paul played in all 82 regular season games for the Clippers last season, the first time he had done that in his career.

Paul is averaging 17.5 points and 8.4 assists per game, and the Clippers elite offense is 13.9 points per 100 possessions better when he is on the floor rather than sitting. Look at it this way, the Clippers’ most used lineup (Paul, J.J. Redick, Lance Stephenson, Blake Griffin, DeAndre Jordan) outscores opponents by 19 points per 100 possessions, but sub Austin Rivers in for Paul and they get outscored by 13.8 per 100 and their defense falls apart. (For the record, I know that they are trying different players at the three and that Luc Mbah a Moute got the chance Monday, but I was using the lineups with the most played minutes to lessen the sample size error.)

The Clippers are not the same without Chris Paul, if he is out for any stretch of time, it’s a setback for a team that had seemed to start finding it groove.