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.

PBT Extra: Who wins MVP, other NBA end-of-season awards?

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The NBA’s award season seems more wide open than ever.

Ben Simmons was going to enter the season as the heavy favorite to win Rookie of the Year, but with him out injured the door is flung open to a lot of players. Coach of the Year is always a game of “which coach exceeds expectations.” Even MVP seems more open with Stephen Curry and Kevin Durant — the award winners the past three seasons — teamed up in the Bay Area.

In this latest PBT Extra I throw out my predictions for the awards, but let’s get on with the games next week and see who earns them.

Sixers Nerlens Noel to miss time following surgery on sore knee

CAMDEN, NJ - SEPTEMBER 26: Nerlens Noel #4 of the Philadelphia 76ers looks on during media day on September 26, 2016 in Camden, New Jersey. 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 Mitchell Leff/Getty Images)
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During the ProBasketballTalk podcast with Sixers coach Brett Brown, you could hear the frustration in his voice. He has all these talented young front line players — Joel Embiid, Nerlens Noel, Ben Simmons, Dario Saric, Jahlil Okafor — but he can’t begin to figure out how they all fit together if he can’t get them on the court at the same time.

That problem just got worse.

The Sixers announced that Nerlens Noel will miss time following surgery to deal with soreness in his left knee. Here is the word from the press release itself:

During the normal course of evaluation and treatment for his left adductor strain, which was identified on October 6, Noel reported localized soreness in his left knee. After consulting with multiple specialists, the source of the soreness was identified as inflamed plica. Noel has elected to address the injury via a minor surgical procedure in the coming days.

The team gives no timeline for Noel’s return. Soreness from the plica — a band of tissue around the knee that is not important following birth — happens in some players and can be fixed by an arthroscopic surgery that removes the area being irritated. While the surgery is minor, it usually takes around six weeks to bounce back from this.

That likely means a little more run for Jahlil Okafor (just coming back from an injury of his own) and Richaun Holmes. But it’s just another injury setback for a Sixers team plagued by them.

The Sixers also announced that Jerryd Bayless will not have surgery on his wrist, but will remain out and be evaluated in two weeks.

If you didn’t watch the final seconds of the WNBA Finals, you should


This was flat out incredible.

After a back-and-forth, even series between the Minnesota Lynx and the Los Angeles Sparks, it came down to the final seconds (although maybe it shouldn’t have, the WNBA admitted Friday the referees missed a call with 1:14 left, giving the Sparks’ Nneka Ogwumike a bucket on a shot after the shot clock expired).

The biggest stars took over at the end, as you can see in the video above: L.A.’s Candace Parker drives and scores with 19 seconds left putting the Sparks up 75-74; Minnesota responded with a Maya Moore jumper to take the lead back, then it came down to Ogwumike (the WNBA’s 2016 MVP) getting the ball after a block by Sylvia Fowles and following it up with a fadeaway bucket that gave Los Angeles the title.

Congrats to Candace Parker on the win, after how she’s been overlooked on the awards circuit in the WNBA this season, this is some sweet revenge.

Report: Jrue Holiday’s wife, Lauren Holiday, undergoes successful brain surgery

NEW ORLEANS, LA - OCTOBER 31:  Jrue Holiday #11 of the New Orleans Pelicans handles the ball during a game against the Golden State Warriors at the Smoothie King Center on October 31, 2015 in New Orleans, Louisiana. 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 Stacy Revere/Getty Images)
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Pelicans point guard Jrue Holiday is away from the team as his wife, Lauren Holiday, battles a brain tumor.

First, Lauren gave birth to a healthy daughter.

Now, more good news.

John Reid of The Times-Picayune:

Hopefully, the Holidays continue to find good health.