N.Y. TIMES
N.B.A. Commissioner Adam Silver deployed the nuclear option on Tuesday to force the Los Angeles Clippers’ owner, Donald Sterling, out of the league for racist remarks he made in a recorded conversation. Now, will Silver’s actions — banishing Sterling for life from team and league business, and urging the other owners to vote to force him to sell the club — withstand any legal challenges?
Silver’s authority seems clear on the banishment of Sterling. The N.B.A. constitution empowers him to suspend and fine owners who make statements “prejudicial or detrimental” to the best interests of the league.
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| Credit Streeter Lecka/Getty Images |
But if Silver’s ability to bar Sterling and fine him $2.5 million is not much in question, he might not find it as simple to successfully terminate Sterling’s ownership of the Clippers’ franchise.
“The forced sale is a little bit murkier,” said Gabe Feldman, the director of the sports law program at Tulane University Law School. The league requires a three-quarters vote of owners to get rid of an owner, but “the question will be whether highly offensive comments made in a private call is reason enough,” Feldman added.
Indeed, the list of causes in the constitution that would prompt the termination of ownership do not specifically include making racist or incendiary remarks.
But Silver — who said he is confident that he has the necessary votes to end Sterling’s ownership, although no timetable for such a vote has been set — is broadly interpreting at least one clause in the constitution, which initiates termination if the owner fails to fulfill his or her obligation in “such a way as to affect the Association or its members adversely.”
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The league commissioner, Adam Silver,
Credit Damon Winter/The New York Times
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If at least 23 of the 30 owners vote Sterling out, legal experts said that he could sue the league, arguing that the other owners conspired in violation of antitrust law to harm his business or overstepped their constitutional authority by kicking him out.
But any such lawsuit would be a gamble for Sterling. According to the N.B.A. constitution, a decision to terminate the ownership of a team is final and binding and the ousted owner waives any court fight.
“When you buy a franchise, you agree to the terms of the league constitution,” said Bradley Shear, a lawyer and professor of sports management at George Washington University. He added, “If you look at the N.B.A. constitution, it leads me to believe that when you start saying the finances of the franchise or league are being impaired, that’s when you have the latitude to require an owner to sell.”
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Marc Ganis, a sports industry consultant, said that in a protracted legal fight, the league could penalize the Clippers further by taking away draft choices or voiding contracts.
“The best-case scenario for Donald Sterling,” Ganis said, “is that he extends the process in court and he wins,” meaning he maintains ownership of the team. “But,” Ganis added, “he will still be banned.”
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EPILOGUE
Embattled Los Angeles Clippers owner Donald Sterling will sell the team to former Microsoft CEO Steve Ballmer and drop his $1 billion lawsuit against the NBA, his lawyer announced June 4. According to the attorney, Sterling "has made an agreement with the NBA to resolve all their differences." In addition, he will sell the team for a record $2 billion in a deal negotiated by his wife, Shelly Sterling. Sterling had sued the NBA last week saying it used information from an "illegal" recording, and that the league had engaged in a breach of contract by fining him $2.5 million for his racist tirade. The sale to Ballmer [is expected to]be signed off on by [the] other NBA owners.
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EPILOGUE
Embattled Los Angeles Clippers owner Donald Sterling will sell the team to former Microsoft CEO Steve Ballmer and drop his $1 billion lawsuit against the NBA, his lawyer announced June 4. According to the attorney, Sterling "has made an agreement with the NBA to resolve all their differences." In addition, he will sell the team for a record $2 billion in a deal negotiated by his wife, Shelly Sterling. Sterling had sued the NBA last week saying it used information from an "illegal" recording, and that the league had engaged in a breach of contract by fining him $2.5 million for his racist tirade. The sale to Ballmer [is expected to]be signed off on by [the] other NBA owners.