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.

Draymond Green, Andre Iguodala cleared to play vs. Pelican Friday

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Without Draymond Green in the fourth quarter Tuesday night in the opener, and with Andre Iguodala out for the game, the Warriors defense fell apart against Houston. The Rockets scored 34 points in the quarter and came from behind to beat a Warriors team that had been in control of the game up to that point. There was more to it than just Green’s balky knee, but without the Defensive Player of the Year they are not the same.

Bad news for the Pelicans: Green and Iguodala have been cleared to play in New Orleans Friday. Green had an MRI and it came back negative.

Green admitted he was concerned that the injury, via Anthony Slater of The Athletic.

Now it is the Pelicans who should be concerned. The Warriors will want to wash the feeling of that opening night loss off them.

Report: Kevin Love was frustrated with move to center

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With Derrick Rose having to start at point guard (until Isiah Thomas returns sometime in early 2018) and Dwyane Wade starting at the two, Cavaliers coach Tyronn Lue had no choice but to move Kevin Love to starting at center. The Cavaliers desperately need the floor spacing to open up driving lanes and options for LeBron James. Start Tristan Thompson at the five (with Love at the four and Jae Crowder coming off the bench) and it adds another non-shooter to the mix that allows opposing defenses to just pack the paint and force LeBron to be a jump shooter.

That doesn’t mean everyone liked the change.

Love admitted to Chris Fedor of the Cleveland Plain Dealer he was frustrated with the move at first.

“It’s been a little bit of a change for me,” Love admitted. “I still find myself spacing a little bit wanting to roll a little bit more and on the defensive end just playing the primary big on their team the whole time on the defensive end. It’s been a little bit different figuring things out on that end, but it comes with the growth I’m talking about. We need to do that and hopefully be a machine when things start clicking.”

Lue put it this way.

“We’re going to try it out and see how it works. He was frustrated at first, but now he’s enjoying it.”

While in certain matchups, when the opposition has a more traditional center, the Cavs may go back to the Love/Thompson front line for a stretch. But the small ball lineup is the way Cleveland should be leaning, even with its clear defensive deficiencies. We saw that in the opener with Love’s dagger three in the fourth quarter.

Love is adjusting, he’s already sacrificed a lot to play with LeBron. This is just another step in that evolution.

Another wing down? Celtics’ Marcus Smart likely out vs. Sixers

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The horrific, probably season-ending injury to Gordon Hayward has left the Celtics with a shortage of players on the wing.

Going up against Philadelphia Friday night, that might be getting worse, reports A. Sherrod Blakely of NBC Sports Boston.

Looking at the pictures, I doubt Smart plays.

As noted, Smart said he hurt both ankles in the second night of a back-to-back against Milwaukee, the left one in a collision with teammate Jaylen Brown. Smart started that game and played 32 minutes. That’s a lot of time to go to lesser players.

If he’s out Friday, that likely means either Terry Rozier or Abdel Nader get the start, and both are going to see a healthy bump in minutes. Whatever happens, the Celtics would miss Smart in a game where they need to defend Ben Simmons on the wing.

What happened to Willy Hernangomez’s minutes with Knicks?

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When talking about the Knicks’ young core going forward, Willy Hernangomez was one of the names that got mentioned by the front office (alongside players such asFrank Ntilikina and Tim Hardaway Jr.). The Knicks are crowded at the center spot — Enes Kanter got the start in the opener Thursday night, and Kristaps Porzingis should get minutes there (it’s ultimately going to be his NBA position), and this isn’t even mentioning Joakim Noah — but Hernangomez looked like a developing young player who needed some run.

He got just 3:46 minutes in the opener, and that was during fourth quarter garbage time. Kyle O'Quinn got nearly 22 off the bench at the five. That follows a preseason where Hernangomez saw his minutes drop seemingly game-to-game.

What gives? Stefan Bondy of the New York Daily News asked the same question.

“We have a lot of bigs,” Hornacek said. “(O’Quinn) and Enes earned the minutes in training camp. Willy’s not far behind. He’s got to keep working. When you got that many bigs, you can’t play them all. The other guys earned the minutes. I told all three of them it doesn’t matter if you’re in the rotation or out of rotation. If you’re in it, you’ve got to earn it to keep it.”

“I can score. It’s not difficult for me. I think the coach wants to see my effort on defense. That’s why I have to keep working hard everyday,” said Hernangomez, who is also Kristaps Porzingis’ best friend on the Knicks.

Without question, Hernangomez needs to work on his defense, but then again this is a Knicks team starting Kanter so it’s obviously not a requirement.

Hornacek needs to find a balance here — it’s early in the season, he wants to win games, he wants to put his best foot forward. But the Knicks are not a playoff team this season, and they are in the player development business. That means Hernangomez — as well as rookie point guard Ntilikina — need to get minutes, need to be thrown to the wolves a little, and need to learn from their mistakes. Hornacek needs to be coaching for a few years down the line… the problem is he knows he may not have this job that far down the line, so he’s coaching to get wins now.