Posted May 30, 2014
Report: Steve Ballmer signs $2 billion deal to buy Clippers from Sterlings
Steve Ballmer chatted with NBA commissioner Adam Silver at a Clippers game earlier this month. (Noel Vasquez/GC Images)
Former Microsoft CEO Steve Ballmer has signed a deal to buy the Los
Angeles Clippers from the Sterling family for $2 billion, according to
ESPN.com. The deal has reportedly been accepted by Shelly Sterling and will be presented to the NBA for final approval.
The approval of disgraced Clippers owner Donald Sterling is no longer necessary, according to
ESPN.com’s Ramona Shelburne, after
he was deemed to be “mentally incapacitated” by experts. Preexisting
rules of the Sterling trust did not require a court hearing for
confirmation of such a ruling. With that, Shelly Sterling is now the
sole executor of the family trust and is fully empowered to sell the
team to Ballmer.
SI.com’s Michael McCann
reports that the NBA could fast-track the sale of the Clippers if it
has a”favorable impression” about a prospective owner. Ballmer would
seem to fit the criteria, having made a record offer and being
previously vetted by the NBA in an attempt to buy the Kings. McCann also
reports that the league could postpone Tuesday’s owners meeting, which
is set to hold a vote on the charge for Donald Sterling’s termination.
From McCann:
Sources tell SI.com that the NBA’s top priority is for
ownership to be transferred, and the league would welcome the exchange
occurring voluntarily. A voluntary transfer would avert a potentially
contentious hearing next Tuesday and, more importantly, avert the
potential of Sterling filing a costly and lengthy lawsuit against the
NBA and its owners.
As of last week,
Sterling had authorized his wife to negotiate the Clippers’ sale. Although he later
disavowed that arrangement, bidding for the franchise continued through the week and as of Thursday morning,
Forbes reported
that Ballmer was willing to pay as much as $1.8 billion for the team.
That figure ballooned to an even $2 billion, which according to the
Times
was enough to outdo the offers from prospective ownership groups led by
David Geffen ($1.6 billion) and Tony Ressler ($1.2 billion).
McCANN: NBA’s checklist before approving sale of Clippers
The agreement with Ballmer could also allow Shelly Sterling to maintain some association with the team,
according to ESPN.com. That could be a sticking point for the league, even if Ballmer and all other aspects of the potential sale check out.
Ballmer has also assured Shelly Sterling that he would not relocate
the franchise to Seattle despite his ties to the area. That sentiment
affirmed
comments Ballmer made to the Wall Street Journal earlier this month.
“If I get interested in the Clippers, it would be for Los Angeles,”
Ballmer said. “I don’t work anymore, so I have more geographic
flexibility than I did a year, year-and-a half ago. Moving them anywhere
else would be value destructive.”
Should Ballmer’s reported $2 billion offer stand, it would be the
highest sale price in NBA history and the second-highest sale price
(behind the $2.1 billion sale of the L.A. Dodgers) for any North
American team, per the
Times. Sterling, however,
would stand to pay $662 million in capital gains taxes as part of the transaction.
McCANN: NBA could fast track sale of the Clippers
Up to this point the NBA has maintained a course toward a June 3 vote
for Sterling’s termination as team owner. Sterling issued his official
response to the NBA’s charge for termination on Tuesday with
a 32-page document stating
his case. In it he presented a wide variety of arguments to dispute his
termination, ranging from his California-protected right to privacy to
allegation of the league’s punishment as arbitrary to dispute over the
empowering language of the NBA’s constitution.
SI.com’s Michael McCann parsed every one of Sterling’s contentions, which he said are intended for the 29 other NBA owners who will vote on the matter of his termination:
Before analyzing the arguments in Sterling’s answer, it
is important to highlight the intended audience. Sterling is attempting
to persuade at least eight fellow owners on the league’s Board of
Governors to vote against forcing him to sell the Clippers. Unless at
least 22 of the 29 other governors vote to make him sell, Sterling will
keep the team, but remain subject to a lifetime suspension. Whether the
answer sways potential judges and jurors, or triggers reconsideration by
players, media and fans is of secondary interest. The wording,
expressions and tone in the answer are crafted principally with
Sterling’s fellow owners in mind. The owners are not strangers to
Sterling. He is familiar with their views and attitudes, and the answer
likely reflects his impressions.
The official termination charge against Sterling was made on the
grounds that he had “damaged and continue[s] to damage the NBA and its
teams.” Specifically, the NBA has taken issue with Sterling for the
following reasons:
- Disparaging African-Americans and minorities.
- Directing a female acquaintance not to associate publicly with
African-Americans or to bring African-Americans to Clippers games.
- Criticizing African-Americans for not supporting their communities.
The first two items relate to comments made by Sterling to his girlfriend, V. Stiviano, in a private tape that was
released by TMZ. The third item relates to comments made during
an interview with CNN this month.
The NBA also listed the following impacts of Sterling’s comments and behavior:
- Significantly undermining the NBA’s efforts to promote diversity and inclusion.
- Damaging the NBA’s relationship with its fans.
- Harming NBA owners, players and Clippers team personnel.
- Impairing the NBA’s relationship with marketing and merchandising partners, as well as with government and community leaders.
Finally, the NBA accused Sterling of engaging in “other misconduct,”
including releasing a “false and misleading press statement.” Upon the
release of the TMZ tape,
Sterling issued a statement in which he questioned the legitimacy of the audio and refused to confirm that the voice on the tape was his.
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