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.

Jazz boost international bona fides with new minor-league coach

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SALT LAKE CITY (AP) — Martin Schiller has been named coach of the Salt Lake City Stars, the Utah Jazz’s NBA G League affiliate.

Schiller previously served as an assistant coach of MHP Riesen Ludwigsburg in Germany and replaces Dean Cooper. He was an assistant coach for the Artland Dragons from 2010-15.

Schiller has also been an assistant coach on the German National Team since 2015, where he worked with Jazz assistant coach Alex Jensen.

Schiller hails from Vienna, Austria, and Stars vice president of basketball operations Bart Taylor lauded him for his international experience and player development background.

The Jazz organization is known to have close relationships with the international basketball community. The Jazz currently have eight international players.

Kyrie Irving will wear No. 11 with Celtics

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BOSTON (AP) — Newly acquired guard Kyrie Irving will wear No. 11 in Boston because the Celtics already have retired the numbers he wore in college and with the Cleveland Cavaliers.

Irving wore No. 11 at two New Jersey high schools before switching to No. 1 at Duke. He wore No. 2 with the Cavaliers for the first six years of his NBA career.

The Celtics retired No. 1 for founder and original owner Walter Brown. They retired No. 2 for former coach and general manager Red Auerbach.

In all, the Celtics have retired 21 numbers, with Paul Pierce’s No. 34 next in line for the TD Garden rafters.

 

PBT Extra: Cavaliers’ new GM aces first big test with Kyrie Irving trade

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Everyone in the NBA — heck, nearly everyone living in the Western hemisphere — knew Kyrie Irving wanted out of Cleveland. That should kill the Cavaliers’ leverage and make it hard to get enough quality back.

New GM Koby Altman — the guy thrust into the job when David Griffin was shown the door — pulled it off brilliantly.

That’s what I talk about in this new PBT Extra. With Isaiah Thomas and Jae Crowder, the Cavaliers remain the team to beat in the East this season. The Brooklyn Nets pick gives them flexibility going forward, whatever LeBron James decides to do next season.

First time at the plate in the big leagues and Altman crushed it to straight away center field.

Cavaliers-Celtics deal first offseason trade involving players who just met in NBA Finals or conference finals

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The Cavaliers and Celtics played in last year’s Eastern Conference finals. The teams were widely expected to meet there again.

Yet, Cleveland and Boston just completed a blockbuster trade – Kyrie Irving for Isaiah Thomas, Jae Crowder, Ante Zizic and the Nets’ 2018 first-round pick.

That seemed odd.

In fact, it’s unprecedented.

That is an incredible fact, one which speaks to LeBron Jamescachet. The Cavs are emphasizing this season, LeBron’s last before a player option, by loading up with veterans Thomas and Crowder. With LeBron still reigning in Cleveland, the Celtics are delaying their peak by acquiring the younger Irving.

Adding to the intrigue: the Cavs and Celtics are still favored to meet in this year’s conference finals. At minimum, they’ll face off in a(n even more) highly anticipated opening-night matchup.