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View Full Version : DTS Agrees to sale. Will not pursue legal action [ESPN]



torocan
06-04-2014, 11:30 PM
Donald Sterling won't pursue lawsuit

Banned owner Donald Sterling has approved the sale of the Los Angeles Clippers to former Microsoft CEO Steve Ballmer and won't pursue further legal action related to the transaction, his attorney told ESPN.com's Ramona Shelburne in an email Wednesday.

Max Blecher said Donald Sterling had settled with wife Shelly regarding the sale and that the NBA agreed to not sue him for anything a day after Sterling, in an interview with NBC4 during a charity function, said he was ready to "move on."

NBA commissioner Adam Silver banned Clippers owner Donald Sterling from the league for life in the wake of Sterling's racist comments. Full coverage

"I feel fabulous, I feel very good," Sterling told NBC4 on Tuesday night when asked how he felt about his wife selling the team. "Everything is just the way it should be, really. It may have worked out differently, but it's good. It's all good."

Donald Sterling -- who had yet to sign anything as of Wednesday night, a source told ESPN.com -- sued the NBA on Friday seeking $1 billion in damages but will withdraw that suit, Blecher said. Commissioner Adam Silver also was named as a defendant in the lawsuit.

The source said the expectation is that Sterling will officially sign off on the sale, and that his people -- Blecher included -- are encouraging him to do so.

"I'm OK, I'm OK," Sterling said Tuesday. "Is the NBA OK? I'm not sure about that. Is Adam Silver OK? I'm sure he's OK."

Once the NBA approved Ballmer's bid to buy the Clippers on Friday, a hearing to determine Donald Sterling's future was canceled. Instead, the NBA Board of Governors will vote on the deal agreed upon by Shelly Sterling and Ballmer, who bid $2 billion for the team.

Donald Sterling will still be banned from the NBA for life, a source told ESPN.com.

Shelly Sterling, as part of a settlement with the league and a condition of the sale to Ballmer, had indemnified the NBA against future legal action by her husband, essentially meaning that even if he won his lawsuit, the Sterling family trust -- which she controlled after Donald Sterling was found by neurologists to be mentally incapacitated -- would pay the damages.

The NBA has set no timetable for a vote to approve Ballmer, but he is expected to easily be accepted by three-fourths of the other 29 owners.

http://espn.go.com/los-angeles/nba/story/_/id/11033530/donald-sterling-green-lights-los-angeles-clippers-sale-attorney-says

Checkmate.

lawrule
06-05-2014, 02:55 AM
http://espn.go.com/los-angeles/nba/story/_/id/11033530/donald-sterling-green-lights-los-angeles-clippers-sale-attorney-says

Checkmate.

Checkmate? The guy's walking off with a check for TWO BILLION DOLLARS.

How much money do you have in the bank?

FOBolous
06-05-2014, 03:21 AM
Checkmate? The guy's walking off with a check for TWO BILLION DOLLARS.

How much money do you have in the bank?

1. Correction, his family's trust, which he currently has no control over, is getting 2 billion...the same trust his wife now controls. And with his cheating ways, I doubt that will change anytime soon.

2. And regardless of how much his family's trust got, he lost his prized possession. The team was his crown jewel. It's a status symbol for him. It's a fruit of his labor. He lost something that's priceless to him.



Either way, there's nothing he can sue the NBA for anyways. The NBA did not force him to sell the team...they didn't even get the chance to. His family's trust, aka his wife, voluntarily sold the team.

lawrule
06-05-2014, 04:27 AM
1. Correction, his family's trust, which he currently has no control over, is getting 2 billion...the same trust his wife now controls. And with his cheating ways, I doubt that will change anytime soon.

2. And regardless of how much his family's trust got, he lost his prized possession. The team was his crown jewel. It's a status symbol for him. It's a fruit of his labor. He lost something that's priceless to him.



Anyways, there's nothing he can sue the NBA for anyways. The NBA did not force him to sell the team...they didn't even get the chance to. His family's trust, aka his wife, voluntaryly sold the team.


1. the point is that his heirs and their heirs and their heirs after that, and so on, are all set. His bloodline is taken care of. The NBA did the sterling family an ENORMOUS favor.

2. There's little to no evidence that Sterling ever considered the clippers a "prized possession." He let them rot in the decrepit sports arena, and otherwise invested next to nothing in the franchise. If anything, he made an especial effort to invest AS LITTLE as possible in the franchise.

The fruit of any franchise is the sale. With a purchase price of $12 million and a selling price of $2 BILLION, I'd say the sterling family did all right.

Donald Sterling never gave two sh-ts about the clippers. Pretending that the sale of the franchise is devastating to him is a complete and utter fabrication without a shred of credible evidence to back it up. It's solely a figment of your imagination.

3. Sterling didn't want to sue. It was a bluff and a plan B in the event that he didn't get an astronomical sale price.

Donald and Shelly have done right by their children. Their heirs are set forever. All thanks to some nutjob bimbo with twenty aliases. :)

Even without Ballmer the sterlings had numerous $1 to $2 billion offers. Congratulations to the Sterling family: the smartest ownership family the NBA has ever seen.

FOBolous
06-05-2014, 04:39 AM
1. the point is that his heirs and their heirs and their heirs after that, and so on, are all set. His bloodline is taken care of. The NBA did the sterling family an ENORMOUS favor.

2. There's little to no evidence that Sterling ever considered the clippers a "prized possession." He let them rot in the decrepit sports arena, and otherwise invested next to nothing in the franchise. If anything, he made an especial effort to invest AS LITTLE as possible in the franchise.

The fruit of any franchise is the sale. With a purchase price of $12 million and a selling price of $2 BILLION, I'd say the sterling family did all right.

Donald Sterling never gave two sh-ts about the clippers. Pretending that the sale of the franchise is devastating to him is a complete and utter fabrication without a shred of credible evidence to back it up. It's solely a figment of your imagination.

3. Sterling didn't want to sue. It was a bluff and a plan B in the event that he didn't get an astronomical sale price.

Donald and Shelly have done right by their children. Their heirs are set forever. All thanks to some nutjob bimbo with twenty aliases. :)

Even without Ballmer the sterlings had numerous $1 to $2 billion offers. Congratulations to the Sterling family: the smartest ownership family the NBA has ever seen.

you act as if Sterling has an amazing family life and his family planned all this to enrich themselves :laugh2: dream on. your hero lost. plain and simple. accept it as he has.

lawrule
06-05-2014, 04:48 AM
you act as if Sterling has an amazing family life and his family planned all this to enrich themselves :laugh2: dream on. your hero lost. plain and simple. accept it as he has.

Only an intellectual munchkin like yourself would consider a $2 BILLION PROFIT a "loss."

And yes, Donald and Shelly are my heroes for being savvy enough to make a $2 BILLION PROFIT for their family. :)

Well played, Donald and Shelly. :)

torocan
06-05-2014, 09:08 AM
Only an intellectual munchkin like yourself would consider a $2 BILLION PROFIT a "loss."

And yes, Donald and Shelly are my heroes for being savvy enough to make a $2 BILLION PROFIT for their family. :)

Well played, Donald and Shelly. :)

It's not a $2B profit.

IF Sterling held onto the team until his death, the team would pass to his heirs through the family trust -- IE, free of capital gains tax.

By selling now, yes the Clippers got a $2B price tag, but it will be subject to capital gains tax, estate taxes (should they die), and state income taxes.

Total tax bill? Estimate to be as high as $662M.


With a 20% federal income-tax rate and a 13.3% state income-tax rate, the Sterlings will owe almost one-third of their profit from selling the Clippers to the tax collectors. That would amount to about $662 million. Yikes!

http://www.marketwatch.com/story/clippers-to-ballmer-and-huge-tax-bills-to-sterling-2014-05-31

By far the Sterling's best option from a tax planning perspective would be to hold onto the Clippers until their death, pass on the asset through the family trust and defer the tax payments. That said, the elevated price of the sale ($2B) may have been significantly driven by the significant tax implications.

Ballmer couldn't eliminate the tax liabilities of the Sterlings, however he COULD make the price higher in order to somewhat offset the tax hit of a more conventional price in order to encourage the Sterlings to walk.


And the Sterlings likely commanded a higher price than they would have if they had sold the team under normal circumstances; people familiar with the talks said Mr. Ballmer made a high bid in part to convince Mr. Sterling to sign off on a sale.

http://online.wsj.com/articles/donald-sterling-to-sell-los-angeles-clippers-to-steve-ballmer-drop-lawsuit-1401922007

Sterling had every financial reason to hold onto the Clippers. Aside from ego and pride, the tax obligations alone was enough reason to fight the NBA.

However, Silver backed him into a corner. Legally his chances of winning were small at best.

Antitrust was a no go as it would be nearly impossible to prove damages on an above market price sale as well as the court's reluctance to intervene in private associations with the Sherman act.

Claims of breach of privacy was unwinnable as the NBA is a private organization and not under the auspices of first amendment restrictions. The court would most likely instruct him to sue Ms. Stiviano for damages.

Arguing that the NBA was responsible for sponsor flight was not tenable as the sponsors were fleeing BEFORE Silver announced an investigation.

Donald Sterling's legal options were severely circumscribed due to the construction of the NBA constitution which prohibited suing the NBA, defined the NBA as the court of final arbitration, and made Sterling responsible for any associated damages and legal costs should he lose.

Donald Sterling had nothing to win financially as soon as Shelley Sterling agreed to indemnify the NBA against any lawsuits filed by Donald Sterling. Even if he won a huge settlement, it would be paid by the Sterling Family Trust (50% controlled by DTS, 50% controlled by Shelley), which means he would only be taking money from himself, Shelley and his children.

Donald Sterling lost his trophy asset and got kicked out of a very exclusive club. Yes, he's walking out with a big bag of money, but it's not nearly as big as it would have been had he held onto the team and passed it onto his children through the family trust.

That and his reputation has now been relegated to the dustbin of history along with such infamous individuals as Marge Schott.

Donald Sterling dug his own grave, threw dirt on it by going on CNN, and was out maneuvered by the Silver, the NBA lawyers and his wife.

To spin this as a win for Donald Sterling is a perfect example of the most wishful kind of thinking...

ewing
06-05-2014, 09:17 AM
i really thought he was going to get the billion

ManRam
06-05-2014, 09:32 AM
Just happy it's over. If this hung around for a while, well....yuck.

And law rule is a troll, right? "the smartest ownership family the NBA has ever seen." Nice!

IndyRealist
06-05-2014, 09:35 AM
Sterling was never going to win his lawsuit anyway. This was the best he could hope for.

Tony_Starks
06-05-2014, 10:56 AM
I like how it went from "Sterling will never sell the team......the NBA will get sued and lose.......the Clippers are going to break up......" to now it's "well yeah they sold but Sterling didnt want the team anyway."

Lol. If Sterling is your hero or you hate the fact that LA has two teams when most cities have none just say that, you don't have to front!

IndyRealist
06-05-2014, 11:31 AM
I like how it went from "Sterling will never sell the team......the NBA will get sued and lose.......the Clippers are going to break up......" to now it's "well yeah they sold but Sterling didnt want the team anyway."

Lol. If Sterling is your hero or you hate the fact that LA has two teams when most cities have none just say that, you don't have to front!

It's not an issue of bias, people just don't understand how the law works. They thought recording the "private" conversation was wrong, so it couldn't be used. But this isn't a court, and the NBA is not the government.

FOBolous
06-05-2014, 12:44 PM
It's not a $2B profit.

IF Sterling held onto the team until his death, the team would pass to his heirs through the family trust -- IE, free of capital gains tax.

By selling now, yes the Clippers got a $2B price tag, but it will be subject to capital gains tax, estate taxes (should they die), and state income taxes.

Total tax bill? Estimate to be as high as $662M.



http://www.marketwatch.com/story/clippers-to-ballmer-and-huge-tax-bills-to-sterling-2014-05-31

By far the Sterling's best option from a tax planning perspective would be to hold onto the Clippers until their death, pass on the asset through the family trust and defer the tax payments. That said, the elevated price of the sale ($2B) may have been significantly driven by the significant tax implications.

Ballmer couldn't eliminate the tax liabilities of the Sterlings, however he COULD make the price higher in order to somewhat offset the tax hit of a more conventional price in order to encourage the Sterlings to walk.



http://online.wsj.com/articles/donald-sterling-to-sell-los-angeles-clippers-to-steve-ballmer-drop-lawsuit-1401922007

Sterling had every financial reason to hold onto the Clippers. Aside from ego and pride, the tax obligations alone was enough reason to fight the NBA.

However, Silver backed him into a corner. Legally his chances of winning were small at best.

Antitrust was a no go as it would be nearly impossible to prove damages on an above market price sale as well as the court's reluctance to intervene in private associations with the Sherman act.

Claims of breach of privacy was unwinnable as the NBA is a private organization and not under the auspices of first amendment restrictions. The court would most likely instruct him to sue Ms. Stiviano for damages.

Arguing that the NBA was responsible for sponsor flight was not tenable as the sponsors were fleeing BEFORE Silver announced an investigation.

Donald Sterling's legal options were severely circumscribed due to the construction of the NBA constitution which prohibited suing the NBA, defined the NBA as the court of final arbitration, and made Sterling responsible for any associated damages and legal costs should he lose.

Donald Sterling had nothing to win financially as soon as Shelley Sterling agreed to indemnify the NBA against any lawsuits filed by Donald Sterling. Even if he won a huge settlement, it would be paid by the Sterling Family Trust (50% controlled by DTS, 50% controlled by Shelley), which means he would only be taking money from himself, Shelley and his children.

Donald Sterling lost his trophy asset and got kicked out of a very exclusive club. Yes, he's walking out with a big bag of money, but it's not nearly as big as it would have been had he held onto the team and passed it onto his children through the family trust.

That and his reputation has now been relegated to the dustbin of history along with such infamous individuals as Marge Schott.

Donald Sterling dug his own grave, threw dirt on it by going on CNN, and was out maneuvered by the Silver, the NBA lawyers and his wife.

To spin this as a win for Donald Sterling is a perfect example of the most wishful kind of thinking...

dang. Game. Set. Match.

lawrule
06-05-2014, 02:36 PM
It's not a $2B profit, BROHEIM.

Look, I can't even spell two billion. I work at walmart. I think two billion dollars is more than the nine dollars an hour I make, but maybe less than what lebron makes. Or summink.

Anyway, I don't like donald. I don't know him, he's a billionaire, and I can't afford a cheeseburger, but I don't like him.

So I'll write this longa--ed post about why $1.332 billion in profit REALLY SUCKS AND MAKES HIM A....LOSER!

Ha. Donald is a LOSER in my book because I work at WALMART and own a keyboard! Ha! That'll show him!

Puny $1.332 BILLION DOLLARS IN PROFIT! I have 1500 in VCASH! And 4,615 POSTS! I am RICH and I is an NBA legal and finance whiz EXPERT!

Ha! Puny $1.332 BILLION in profit! Lebron makes more! My vcash is way more valuable! You LOSE Donald! Ha ha ha!

Fixed.

lawrule
06-05-2014, 02:41 PM
I like how it went from "Sterling will never sell the team......the NBA will get sued and lose.......the Clippers are going to break up......" to now it's "well yeah they sold but Sterling didnt want the team anyway."

Lol. If Sterling is your hero or you hate the fact that LA has two teams when most cities have none just say that, you don't have to front!

Yup, pulling off a sale for TWO BILLION DOLLARS is pimpalicious. Recognize. What you got in the bank? Naw, monopoly money don't count.

lawrule
06-05-2014, 03:10 PM
dang. Game. Set. Match.

http://www.quickmeme.com/img/09/0960fe3cab8cf5f0f405b61183aa42632753e98653e9038c75 72d41b18d39633.jpg

Sadds The Gr8
06-05-2014, 03:22 PM
He'll change his mind by the weekend

FOBolous
06-05-2014, 03:38 PM
Fixed.


Yup, pulling off a sale for TWO BILLION DOLLARS is pimpalicious. Recognize. What you got in the bank? Naw, monopoly money don't count.


http://www.quickmeme.com/img/09/0960fe3cab8cf5f0f405b61183aa42632753e98653e9038c75 72d41b18d39633.jpg

lol u mad bro? You mad that your hero lost against the NBA? It's ok to be sad. Keep telling yourself that sterling is some evil genius that came up with elaborate plan to sell his team for $2 bil :laugh2: but no amount of lies you tell yourself or denial can change the FACT that Sterling lost, is banned from the NBA forever, and his family was forced to sell something they weren't planning on selling.

FOBolous
06-05-2014, 03:40 PM
He'll change his mind by the weekend

Meanwhile his lawyers eagerly awaits his phone call so they, like everyone else in his life, can milk more money from him

NBA_Starter
06-05-2014, 05:43 PM
It is the best and quickest solution.

Cracka2HI!
06-05-2014, 06:36 PM
And with this, Donald Sterling is no longer relevent to anything NBA related. There is no need for anymore Sterling threads after this!

NBA_Starter
06-05-2014, 07:02 PM
And with this, Donald Sterling is no longer relevent to anything NBA related. There is no need for anymore Sterling threads after this!

It would be a welcome change around here.

Tony_Starks
06-05-2014, 09:38 PM
[QUOTE=FOBolous;28584960]Meanwhile his lawyers eagerly awaits his phone call so they, like everyone else in his life, can milk more money from him[/

Funniest thing his lawyer said was Sterling was the most upset over this whole incident "ruining his reputation."

Lol! That's like a prostitute getting busted and trying to sue the police for making her look promiscuous.

Cal827
06-05-2014, 10:12 PM
And with this, Donald Sterling is no longer relevent to anything NBA related. There is no need for anymore Sterling threads after this!

:laugh: This is PSD Buddy. I'm sure like 3 and a half years from now, when we are discussing the state of the NBA, that someone will probably bring up a thread asking, "did that Racist save the NBA?"