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

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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.

Nikola Mirotic, Bobby Portis lead way, Bulls blow out Kyrie-less Celtics 108-85

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CHICAGO (AP) — Nikola Mirotic and Bobby Portis are starting to draw attention for their play together instead of their fight with each other.

Mirotic scored 24 points, Portis added a career-high 23 and the Chicago Bulls blew out Boston 108-85 on Monday night with Celtics star Kyrie Irving sidelined because of a bruised left quadriceps.

Owners of the NBA’s worst record, the Bulls (6-20) built an 18-point lead in the second quarter against the Eastern Conference leaders. And when Boston cut it to 12 in the fourth, the Bulls simply pulled away for their third straight win.

Leading the way were two players who made headlines for all the wrong reasons before the season started.

Their fight at practice left Mirotic with facial fractures, causing him to miss the first 23 games. Portis served an eight-game suspension.

But the two have played well together the past two games.

“We need to give the credit to (coach Fred Hoiberg),” Mirotic said. “Fred is the one who is making us play. He’s the guy who is calling the plays for us and putting us in the right spots to play.”

As for the fight?

“Man, that situation’s over,” Portis said. “Everybody’s talking about that. But that doesn’t matter anymore. We’re just trying to win games.”

Mirotic made his first start of the season with leading scorer Lauri Markkanen sidelined because of back spasms and shot 9 of 14 with eight rebounds. Through three games, the 6-foot-10 forward is averaging 16.3 points.

Portis shot 10 of 15 and nailed all three 3-pointers.

Al Horford scored 15 for Boston (23-6). Jaylen Brown, Marcus Smart and Terry Rozier added 13 points apiece in the Celtics’ most lopsided loss of the season.

“Sometimes you get your butt kicked. It was simple as that,” coach Brad Stevens said. “Chicago dictated the whole game. They played harder than we did. They played with more presence than we did. They played more competitive than we did. They played with more authority than we did. You’re not going to win many games when you play like that.”

 

Russell Westbrook threw it down all over Michael Kidd-Gilchrist

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A rough night for the Thunder will not stop the Russell Westbrook highlights.

The Thunder had another poor game and fell to a Hornets. Westbrook tried to push the team back, but the Thunder defense that has kept them in games all season was not good enough against Charlotte, and the OKC offense was once again up and down.

Westbrook had 30 points on 22 shots on the night, and none of them were as impressive as this transition throwdown on Michael Kidd-Gilchrist.

Jahlil Okafor excited about fresh start with Nets

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NEW YORK (AP) — Jahlil Okafor finally got the fresh start he wanted.

Okafor was the consensus No. 1 high school player in his class, won a national championship at Duke, and averaged 17.5 points and seven rebounds in his rookie campaign for the Philadelphia 76ers.

Then things changed drastically.

Okafor struggled with injuries and a logjam at his position in his second season.

“When I first got drafted there, we already had Nerlens (Noel) there, Joel (Embiid) was there, so we’re trying to have three starting centers on the same team,” Okafor said Monday at his introductory news conference with his new team, the Brooklyn Nets.

“It just never really was the right fit.”

The 76ers traded Okafor along with seldom-used guard Nik Stauskas and two draft picks to the Nets on Thursday. Philadelphia got forward Trevor Booker from Brooklyn.

Okafor also had off-court problems during his time in Philadelphia. He got a speeding ticket for driving 108 miles per hour and was suspended by the 76ers for two games after in an altercation outside of a Boston nightclub with a heckler.

“Speeding obviously is illegal,” Okafor said. “I know that’s not what you’re supposed to do. I guess you just learn how the page can turn on you and how everything can flip. I can’t really say I learned anything, because you know going in that’s not right. You just learn from your mistakes, but (it was) a tough thing that I went through, I got past, and I’m looking to better times now.”

Okafor, the third overall pick in the 2015 draft, joins D'Angelo Russell, the second overall pick in the same draft class, on the Nets.

“We’re just very excited to get on the court together,” Okafor said. “You never would’ve thought the number two and number three picks would be playing on the same team a few years after, but like I said, everything happens for a reason and I’m really excited.”

Russell also had problems on and off the court with the team that drafted him. He was criticized for recording a video of former Lakers teammate Nick Young that aired sordid details about Young’s private life. The Lakers gave up on Russell and drafted Lonzo Ball as his replacement.

“I feel like we’re similar in that we have a lot to prove,” Okafor said. “I know he’s working his (butt) off as well. Right now he’s rehabbing, trying to get back on the court. I think we both have a chip on our shoulder and we have a lot to prove. We’re definitely similar in that regard.”

Okafor understands he has areas to improve, mainly defense and rebounding.

“I’m not a perfect player,” Okafor said. “I’m 21. There are things that I need to work on, that I have worked on and that I’ll continue to work on.”

He’s excited about fulfilling his potential with a new team.

“I feel really motivated right now, but I’ve always been motivated,” Okafor said. “This is the first time where people are against me in a sense because I’ve always been the hyped-up guy. It’s something new for me to experience, so I’m glad that I am experiencing it.”

 

Report: Celtics’ Marcus Morris to miss “extended time” to let knee heal

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Marcus Morris missed the Celtics’ first eight games of the season in an effort to get healthy. Upon his return he’s been solid, first as a starter, then coming off the bench, but his left knee continued to be an issue.

Morris was out Sunday when the Celtics beat the Pistons, and he’s going to miss more time trying to get a troublesome left knee right, reports Shams Charania of The Vertical at Yahoo Sports.

How much time is “extended time?” Probably at least a couple of weeks.

Morris has averaged 12.1 points and 5.5 rebounds a game this season, with a true shooting percentage of 52.5, which is right around the league average.

This could mean more run for rookie forwards Semi Ojeleye and Daniel Theis, both of whom have played well in limited minutes.