Sterling to Sue NBA

[nelsonmuntz]

Don't get me wrong, a $150,000,000 tax bill sucks...but if he makes $1.5 billion on a sale...I mean...enjoy the other $1.35 billion?

Sterling should hold on. The value of the team on the boneyard goes up every day.

Depending on how Sterling structured the purchase, the tax bill would be at least $300MM on a sale of $1.5bn since he basically bought the team for nothing by today's standards.

I think the sale price will be around $650-$700MM based on what I have read the last few days. Sterling will have to pay 20% of that, unless he kicks the bucket first, than his assets get grossed up for tax purposes. Since the estate taxes are going to be big, the family will not want to pay two tax bills on a guy who is on a countdown. They are going to fight the sale until he dies, at which point they will probably have to sell to pay the estate tax bill.

 

[noeynox]

Sterling should hold on. The value of the team on the boneyard goes up every day.

Depending on how Sterling structured the purchase, the tax bill would be at least $300MM on a sale of $1.5bn since he basically bought the team for nothing by today's standards.

I think the sale price will be around $650-$700MM based on what I have read the last few days. Sterling will have to pay 20% of that, unless he kicks the bucket first, than his assets get grossed up for tax purposes. Since the estate taxes are going to be big, the family will not want to pay two tax bills on a guy who is on a countdown. They are going to fight the sale until he dies, at which point they will probably have to sell to pay the estate tax bill.

This makes sense, but I could also see the franchise losing value. Their coach will likely resign, and players will likely seek a special exception to be declared free agents if Sterling or his family continue to own the team.

 

[Adios]

On the bright side, this may create more college basketball fans...

 

[Go_Huskies]

It is not about hyposcrisy. You seem to be looking at this with a double standard type of slant that a minority could get away with doing and saying things that a white can't, and while that is true in some instances, that is not what this situation is about. If you saw how this played out, what the commissioner first said is that Sterling should be afforded "due process". At his press conference he displayed outrage and disgust. What happened in between? Public outrage, and sponsors started parting ways with the clippers left and right. If the NBA did nothing, they risked similar loss of sponsorships/money if public pressure mounted.

As far as the tapes being illegally taped? That has nothing to do with nothing, since the NBA is not a court of law. What they had was PR problem in the court of public opinion. It is always about money when it comes to these types of things.

I brought up the Hank Williams because he had that song about the confederacy winning the civil war out, and still sang the Monday night football jingle. When he called Barrack Obama hitler, ESPN quickly said see you later. Why? Because it was inflamatory to consumers and advertisers probably would have dropped them in protest, to appease their consumers.

If Jay Z;s actions stood to cost the NBA millions, they would kick his to curb too.

Then you are admitting this has nothing to do with principles it is all about appeasing the public and profit. Fine, I have no problem with that at all. What does make me mad, is the sanctimonious posturing. If the NBA were honest and said due to the public backlash and the withdrawal of sponsors we have made the conclusion it is in the best financial interests of the NBA to fine and kick out Sterling. I would have no problem with that. But instead I feel they are acting as if they are making some brave moral decision when they are just appeasing the crowd and worried about their profits.

This man was convicted of being a slum lord that discriminated against blacks much worse than comments in a private call and they did nothing. Why? Because it didn't hurt their bottom line. Now that it hurts their bottom line they do something. Fine, I have no problem people protecting their investment but just spare me the holier than thou mentality. I am not speaking about you or any posters but the NBA commissioner and owners.

 

[jibsey]

I have heard of a lot of people with prostate who weren't supposed to last long and did because it's pretty slow as far as cancers go. He could easily last 5 more years, this isn't pancreatic cancer. How bad could it be if he's playing with a call girl?

 

[noeynox]

Go Huskies, It Isn't A Double Standard. It's A Single Standard. Money. NBA Had No Choice In How They Handled it.

 

[Jimmy Serrano]

Then you are admitting this has nothing to do with principles it is all about appeasing the public and profit. Fine, I have no problem with that at all. What does make me mad, is the sanctimonious posturing. If the NBA were honest and said due to the public backlash and the withdrawal of sponsors we have made the conclusion it is in the best financial interests of the NBA to fine and kick out Sterling. I would have no problem with that. But instead I feel they are acting as if they are making some brave moral decision when they are just appeasing the crowd and worried about their profits.

This man was convicted of being a slum lord that discriminated against blacks much worse than comments in a private call and they did nothing. Why? Because it didn't hurt their bottom line. Now that it hurts their bottom line they do something. Fine, I have no problem people protecting their investment but just spare me the holier than thou mentality. I am not speaking about you or any posters but the NBA commissioner and owners.

This post nails it.

 

[MilliniumPrince]

It is not about hyposcrisy. You seem to be looking at this with a double standard type of slant that a minority could get away with doing and saying things that a white can't, and while that is true in some instances, that is not what this situation is about. If you saw how this played out, what the commissioner first said is that Sterling should be afforded "due process". At his press conference he displayed outrage and disgust. What happened in between? Public outrage, and sponsors started parting ways with the clippers left and right. If the NBA did nothing, they risked similar loss of sponsorships/money if public pressure mounted.

As far as the tapes being illegally taped? That has nothing to do with nothing, since the NBA is not a court of law. What they had was PR problem in the court of public opinion. It is always about money when it comes to these types of things.

I brought up the Hank Williams because he had that song about the confederacy winning the civil war out, and still sang the Monday night football jingle. When he called Barrack Obama hitler, ESPN quickly said see you later. Why? Because it was inflamatory to consumers and advertisers probably would have dropped them in protest, to appease their consumers.

If Jay Z;s actions stood to cost the NBA millions, they would kick his to curb too.

This ^^^^

 

[Danzz]

The tax implications of selling now are enormous. The Sterling family has no choice but to fight it out.

I'm sure Sterling has his accountants and attorneys working overtime on all scenarios. Whatever tax implications there are could be trumped by the value of the franchise dropping as a result of this mess and the value of the franchise will continue to drop as free agents ignore the Clippers. The other owners may not trade with the Clippers and players could demand a no trade clause to the Clippers at contract time. Sterling's only way to improve his team would be through the draft and that is a severe limitation.
Sterling will be out one way or another. He is done.

 

[MilliniumPrince]

The value of the franchise will not drop. There are billionaires begging to buy into the League. The worst team in the League playing in a bad arena just sold for over half a billion dollars. Larry Ellison is the 5th wealthiest human alive and he has been trying to buy a team for tears. Sterling can't lose. I agree with Nelson about the tax implications. Sterling's offspring must be nervous as hell.

 

[nelsonmuntz]

The value of the franchise will not drop. There are billionaires begging to buy into the League. The worst team in the League playing in a bad arena just sold for over half a billion dollars. Larry Ellison is the 5th wealthiest human alive and he has been trying to buy a team for tears. Sterling can't lose. I agree with Nelson about the tax implications. Sterling's offspring must be nervous as hell.

It can drop, but not by enough to justify dumping it now.

Price matters. If Ellison was willing to pay any price, he would own an NBA team by now. He has clearly walked away from the table a couple of times. The value will go down. People like Ellison are ego maniacs, but they are not idiots. If sponsors are gone and the team is a glorified D-League franchise getting lit up every night in front of friends and family of the players, Magic or Ellison or Oprah will not pay as much as they will for a team with Chris Paul and Blake Griffin that plays in front of thousands. That said, I suspect the Sterling family is working to get Pops as far away from the team and out of the spotlight as possible until he kicks the bucket. Then they will sell.

 

[uconnfan68]

The law doesn't look kindly on "arbitrary and capricious" decision making, no matter who is involved. That is exactly what the NBA has done.

The NBA club can do whatever it wants to the members.

 

[Chin Diesel]

The NBA club can do whatever it wants to the members.

Yep. No one is saying Sterling can't own a basketball team. But if he wants all the benefits of the NBA name brand, there's conditions attached to it.

This isn't any different (other than scale) of owning a fast food joint. If you want all the built-in advantage of selling burgers with golden arches on your marquee, then there's some rules you have to follow.

 

[uconnfan68]

Yep. No one is saying Sterling can't own a basketball team. But if he wants all the benefits of the NBA name brand, there's conditions attached to it.

This isn't any different (other than scale) of owning a fast food joint. If you want all the built-in advantage of selling burgers with golden arches on your marquee, then there's some rules you have to follow.

I see what you did there... McD AAs vs. McD burger flippers.

 

[Chin Diesel]

I see what you did there... McD AAs vs. McD burger flippers.

Purely unintentional.

 

[intlzncster]

Not that it matters much, but the latest:

Stiviano: She said she does not feel Sterling is racist, despite hearing him say derogatory things about minorities. "No," she said. "I don't believe that in my heart. I think the things he says are not what he feels. Anybody can say anything in the heat of the moment," she said. "I think Mr. Sterling is from a different generation than I am. I think he was brought up to believe those things. Segregation. Whites and blacks. Through his actions, he's shown he's not a racist. Through his actions, he's shown to be a generous and kind man."

Sterling: "I wish I had just paid her off."

So, there you go.

 

[Waquoit]

Cliff Notes version:

Stiviano: "Oops!"
Sterling: "Whore"

 

[intlzncster]

It can drop, but not by enough to justify dumping it now.

Price matters. If Ellison was willing to pay any price, he would own an NBA team by now. He has clearly walked away from the table a couple of times. The value will go down. People like Ellison are ego maniacs, but they are not idiots. If sponsors are gone and the team is a glorified D-League franchise getting lit up every night in front of friends and family of the players, Magic or Ellison or Oprah will not pay as much as they will for a team with Chris Paul and Blake Griffin that plays in front of thousands. That said, I suspect the Sterling family is working to get Pops as far away from the team and out of the spotlight as possible until he kicks the bucket. Then they will sell.

It's a two way street. Larry Ellison has been trying to buy a team for a while now, but his been blocked before. If they had let him, he would have already bought in. The owners get to pick who buys, not the buyer.

 

[jleves]

Sterling's offspring must be nervous as hell.

Ehhh - I don't know. I think I could deal with paying the tax bill on a 1.9 Billion dollar inheritance.

 

[MilliniumPrince]

Ehhh - I don't know. I think I could deal with paying the tax bill on a 1.9 Billion dollar inheritance.

Do you know a lot of wealthy people who are OK with giving up money? Do you know any people who are OK with giving up money?

In the bug picture I agree with you. I also bet they are nervous as hell..