Donald Sterling’s response to NBA charges vows fight, Shelly Sterling files separate response

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If you read from his comments over the past couple weeks that Donald Sterling was willing to let his Los Angeles Clippers go, that he didn’t really want to fight the league, then you haven’t followed Donald Sterling’s career.

Sterling’s attorney filed a lengthy, defiant response to the NBA’s charges — those charges are part of an effort by the league to use its constitution to force a sale of the team following outcry after prejudiced remarks by Sterling first heard on a private recording obtained by TMZ and then additional remarks on CNN.

Sterling’s response talks of large offers for the team — in excess of $2.5 billion, although his attorney later denied that was the number — and promising to fight the league’s efforts to force a sale of the team, reports Brent Schrotenboer of the USA Today.

Los Angeles Clippers owner Donald Sterling said the NBA’s efforts to terminate his ownership of the Los Angeles Clippers are “illegal” and that it would force his family to pay an enormous capital gains tax that would be “egregious,” according to his response to NBA charges filed Tuesday.

In a 32-page response to the league, he said he will fight the charges and noted that he has received offers of more than $2.5 billion for the team.

Donald’s wife of 58 years, Shelly Sterling, filed a separate response with the league asserting her rights as half owner of the team under community property laws and saying she was just an innocent bystander in this. Her attorney Pierce O’Donnell reached out to NBC News with this statement:

“Donald Sterling has authorized Shelly Sterling in writing to negotiate the sale of the Los Angeles Clippers, including his 50 percent ownership of the team. Shelly is managing the sale of the Clippers. While no formal offers have yet been received, Shelly and the NBA are working cooperatively on the transaction.”

Donald Sterling’s lawyer refutes that.

The NBA is not slowing down its process, NBA spokesman Mike Bass said in a statement in response to the Sterling’s filings.

“This evening, the NBA received responses from Donald and Shelly Sterling to the charge to terminate the current ownership interests in the Los Angeles Clippers.  The NBA Board of Governors will meet on June 3 at 1 p.m. in New York City to hear and vote upon this matter.  Should the Board vote to sustain the charge, the Sterlings’ interests in the Clippers will be terminated and the team will be sold.”

The owners need a three-quarters vote (23 of the 29 owners) to strip Sterling of his franchise.

This all stems from recorded comments by Donald Sterling that were prejudiced (both in the interview with his former mistress and on CNN), combined with a racist history, which resulted in a wave of anger from fans and sponsors withdrawing their support from the Clippers. This is what the NBA had said previously about the charges.

The charge asserts that Mr. Sterling engaged in conduct that has damaged and continues to damage the NBA and its teams. Among other things, Mr. Sterling disparaged African-Americans and “minorities”; directed a female acquaintance not to associate publicly with African-Americans or to bring African-Americans to Clippers games; and criticized African-Americans for not supporting their communities.

Mr. Sterling’s actions and positions significantly undermine the NBA’s efforts to promote diversity and inclusion; damage the NBA’s relationship with its fans; harm NBA owners, players and Clippers team personnel; and impair the NBA’s relationship with marketing and merchandising partners, as well as with government and community leaders. Mr. Sterling engaged in other misconduct as well, including issuing a false and misleading press statement about this matter.

The mention of capital gains tax by Donald Sterling’s lawyer gets to the heart of the matter — in California the combination of state and federal taxes would force him to pay 33 percent of his profit on the sale in tax. He bought the team for $12.5 million more than 30 years ago, even if the team sold for $1 billion (and it’s expected to be higher, maybe much higher) that would be $333 million in taxes.

However, if Sterling holds on to the team until he passes (he is reportedly battling cancer) and the team goes to his relatives who sell it, they only pay capital gains on the difference between the estimated value at the time of his passing and the sale. That would be considerably less.

The league does not care.

They are moving ahead with their drive to force a sale. If the 29 other owners vote to terminate Sterling’s ownership, the league then takes over and sells the team (Sterling would get the profits from that sale). The league believes it has the right to do this because the Clippers are a a franchise and Sterling signed documents multiple times over the years agreeing to the league’s rules and bylaws. Most legal experts side with the league’s position.

Shelly Sterling is trying to say she will help sell the team, however as part of that she wants to keep a piece of the franchise as a minority owner — her identity is clearly largely tied to being the owner of the Clippers.

The league and its players will not tolerate that.

Expect the league’s owners to vote to terminate Sterling’s ownership of the team on June 3.

Expect the Sterlings to take this to court after that vote.

Expect this to continue to drag out. Because this is who the Sterlings are, this is what they do.

Report: Gerald Green to sign with Milwaukee for training camp (at least)

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How good is the hot chocolate at the BMO Harris Bradley Center?

I ask because it appears Gerald Green is going to be playing in Milwaukee, at least for training camp, according to Shams Charania of The Vertical at Yahoo Sports.

Free-agent swingman Gerald Green has agreed on a contract with the Milwaukee Bucks, league sources told The Vertical.

Green will sign a non-guaranteed deal for training camp and is expected to compete for a regular-season roster spot. Milwaukee has looked to add depth at the wing positions, bringing Green and veteran guard Brandon Rush to camp.

The Bucks have 14 guaranteed contracts, so it is Rush vs. Green for that final roster spot. Green played solidly last season in Boston despite inconsistent minutes, but was not brought back as the Celtics revamped their roster. Green shot 35.1 percent from three last season, can play decent defense, and is a good veteran presence on a team with young players.

As for why I asked about the hot chocolate…

Draymond Green: I laughed in Kevin Durant’s face over Twitter fiasco

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Kevin Durant said he hasn’t slept in two days and isn’t eating due to his Twitter fiasco.

Draymond Green – who was mocked by his Team USA teammates, including Durant, over his own Snapchat snafu – said he got revenge.

Anthony Slater of The Athletic:

Green:

It’s a little payback. I stood right there, over there, laughing in his face. And it felt pretty damn good, too.

The Warriors’ chemistry is either in a touchy spot or light years ahead.

Report: Former No. 1 pick Anthony Bennett signing with Suns

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Getting cut by the NBA-worst Nets was a low point for former No. 1 pick Anthony Bennett, but at least he had a guaranteed salary and got paid out through the end of the year.

That won’t be the case with the Suns.

Shams Charania of Yahoo Sports:

This is a no-risk flier for Phoenix. If Bennett plays well enough in the preseason, the 24-year-old will make the regular season roster. If not, the Suns won’t owe him anything.

Bennett has a chance to stick. Phoenix has just 13 players with guaranteed salaries, leaving two standard-contract spots open on the regular-season roster. Bennett will compete with Derrick Jones Jr., Elijah Millsap, Peter Jok and anyone else the Suns sign.

I don’t love Bennett’s odds. He hasn’t looked like an NBA player, and he’s reaching the age where current production matters more than potential. But by virtue of being the top pick a few years ago, he carries more intrigue than the typical player of his caliber.

Rockets GM Daryl Morey: Lottery-reform proposal ‘not doing a whole lot’

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Rockets general manager Daryl Morey supports the NBA’s lottery-reform proposal:

But that doesn’t mean Morey believes the proposal is a silver bullet.

Morey, via Bleacher Report:

Let’s be clear. This reform is not doing a whole lot, right?

And I keep saying: If it was already in place, no one would talk about it. If it wasn’t in place – all these people are talking about it because it’s coming up for probably a vote here in a minutes. Otherwise, no one would be talking about it. Everyone would be like, “Oh, yeah. Of course the bottom three lottery odds are flat. That’s how it’s always been.” It’s a very minor change, and it fixes some pretty important problems in terms of how the incentives work at the bottom of the draft, and I don’t think it changes much in any other way.

And then the best argument is the people who are frustrated the league is unbalanced between destination and non-destination cities, they say, “Because that whole system might be broken, I’m going to be against this minor, logical, simple reform.” I don’t really buy that. Let’s fix the other issues in another way, but you can still be for this reform and say we need larger reform that attacks those issues in a more fundamental way. But it doesn’t change that this is a good, logical step we’re taking.

Morey is aggressively logical, and you can see that at work here. If the new rule is better than the old rule, owners should vote for it. It shouldn’t matter which was already in place. For similar reasons, I argued against shelving lottery reform just because new national TV contracts would increase the salary cap.

Morey is also right that this is a minor reform. There’s still value in tanking, even if not quite as much. Finishing with the league’s worst record still guarantees a top-five pick with team control for five years and the inside track on keeping the player for far longer.

There’s even still value in jockeying among the league’s three worst teams, which will have identical lottery odds if this proposal passes. If a team isn’t drawn for the top four, it will be slotted in reverse order of record. The No. 1 seed in the lottery has a 20% greater chance than the No. 2 seed of picking higher between the two, and the No. 2 seed has a 20% greater chance than the No. 3  seed of picking higher between the two, according to fantastic Ryan Bernardoni of Celtics Hub.

So, this lottery reform might only minimally change behavior.

Another thing to consider: NBA owners are far more risk-averse than Morey. If this reform passes, owners will take years to evaluate it before making more meaningful changes to address the problem (if you believe there’s a problem at all). So, a step in the right direction (again, if you believe this is the right direction) is effectively a small step and a pause that could delay bigger steps.