Donald Sterling

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

11 Comments

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.

Rumor: Greg Monroe would like to be traded to New Orleans

Milwaukee Bucks center Greg Monroe, center, drives to the basket against New Orleans Pelicans center Alexis Ajinca, left, and guard Tyreke Evans, right, during the first half of an NBA basketball game Saturday, Jan. 23, 2016, in New Orleans. (AP Photo/Jonathan Bachman)
Associated Press
Leave a comment

If you’re going to bet on an NBA player likely to be moved before the start of the NBA season — or at least by the deadline — Bucks’ big man Greg Monroe would be a good choice. It’s no secret he is on the trade block, the Bucks just aren’t finding a team making an offering to their liking.

What would Monroe like?

He probably wants to end up in New Orleans, ESPN’s Marc Stein said on the Lowe Post podcast.

Which makes a ton of sense — he was born in New Orleans, he wants to go home. The two sides have talked about a deal multiple times in the past, but nothing got done.

The problem is the Bucks are only getting rock-bottom offers for Monroe. On the upside, he’s an efficient offensive NBA big who got the Bucks 15.3 points and 8.8 rebounds a game last season. However, he’s a defensive liability who does not protect the rim, plus he’s a $17 million rental next season (he can and likely will opt out in the summer of 2017). Even teams that could use a scoring big are not going to give up much quality in a trade for a rental like Monroe.

The Pelicans already have Omer Asik and Alexis Ajinca as traditional fives, and they should play Anthony Davis there more anyway. Roster wise, the Pelicans would need to make some other moves for this deal to make sense.

But eventually, the Bucks will find an offer they are willing to take.

Nets’ Greivis Vasquez pulls out of Olympics for Venezuela

DENVER, CO - NOVEMBER 11:  Greivis Vasquez #21 of the Milwaukee Bucks takes the court against the Denver Nuggets at Pepsi Center on November 11, 2015 in Denver, Colorado. The Nuggets defeated the Bucks 103-102. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Doug Pensinger/Getty Images)
Getty Images
Leave a comment

Venezuela is in its first Olympic basketball tournament in more than 20 years — they upset Canada and Argentina to win the FIBA Americas tournament last summer and earned the right to go to Rio.

But they are going to have to play there without the one NBA player on their roster. Greivis Vasquez, who had ankle surgery last December, announced he had to pull out, via the Nets.

If you want to know what this means for the Venezuelan team heading into Rio, well, they shot just 23.9 percent in an 80-45 loss to Team USA Friday night in Chicago — and that was by far the USA’s worst performance in the exhibition run-up to the Rio Games.

Vasquez should be getting decent minutes off the bench behind Jeremy Lin in Brooklyn this season. They need him healthy as the team tries to move from “god awful” to just plain “not good” next season.

Report: Monty Williams to accept role on Spurs coaching staff next season

LAS VEGAS, NV - JULY 18:  Draymond Green #14 of the 2016 USA Basketball Men's National Team drives against assistant coach Monty Williams of the 2016 USA Basketball Men's National Team during a practice session at the Mendenhall Center on July 18, 2016 in Las Vegas, Nevada.  (Photo by Ethan Miller/Getty Images)
Leave a comment

Another smart move by the Spurs.

Monty Williams is one of the better assistant coaches in the NBA right now, and he was available (remember he understandably left Oklahoma City last season after the tragic death of his wife). He’s part of Mike Krzyzewski’s staff with USA Basketball this summer — watch him in practices at age 44 and he’s a better defender plenty of players in the league — and he wanted to get back on the bench.

San Antonio has snapped him up, reports Marc Stein of ESPN.

Sources told ESPN that Williams — who left the Oklahoma City Thunder’s bench in February after the tragic death of his wife, Ingrid — has been urged by Spurs coach Gregg Popovich to take as much of a role with the organization as he feels comfortable for the 2016-17 campaign.

The specifics of what role Williams would fill and how much time he could commit have not yet been determined, but sources say San Antonio has opened the door to either a coaching and player-development role or a front-office position (or a hybrid), depending on what he prefers.

One source close to Williams told ESPN that the 44-year-old “absolutely” intends to be a head coach in the league again after his expected stint with the Spurs. The source also said numerous teams, including Oklahoma City, have made similar offers to Williams for next season.

Williams will get another shot in the big chair down the line. In the short term, this is a smart move — nothing looks better on a resume than “Spurs” around the league right now.

Team USA has sing-along on plane leaving Chicago. Well, except for ‘Melo.

OAKLAND, CA - JULY 26:  Carmelo Anthony #15 of the United States Men's National Team looks on during player intro duction prior to playing the China Men's National Team in a USA Basketball showcase exhibition game at ORACLE Arena on July 26, 2016 in Oakland, California.  (Photo by Thearon W. Henderson/Getty Images)
1 Comment

Team USA had their “Tiny Dancer” moment.

Like “Stillwater” in Almost Famous, Team USA’s Jimmy Butler, Draymond Green and Kyrie Irving were leading a sing-along of Vanessa Carlton’s “A Thousand Miles” on the team plane out of Chicago to Houston for the USA’s final exhibition game. Hat tip Alysha Tsuji who pulled the snapchats.

Everyone was loving it… except for Carmelo Anthony, according to DeMar DeRozan.

Melo ain't having it…😂

A video posted by DeMar DeRozan (@demar_derozan) on