May 20, 2014
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According to CNN, the NBA is strongly considering disenfranchising the Los Angeles Clippers. If Sterling is disenfranchised, he would be allowed to keep the business as a financial investment. However, he and his wife would lose control of the Clippers and the NBA would take over the team. The Sterling’s would continue to jointly own the trust, but the trust would no longer own the team. With Shelly Sterling filing for divorce last week, this would be a smart move for the NBA, since any divorce proceedings would not affect the league’s ability to transfer ownership of the team away from the trust.
Yesterday, the NBA gave Sterling a May 27th deadline to respond to charges against him. He will be allowed to present his case before the Board of Governors on June 3rd, at which time a vote will commence to oust him from the league.
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| Maxwell Blecher |
Meanwhile, Donald Sterling has hired prominent antitrust litigator Maxwell Blecher to prepare a lawsuit against the NBA. Blecher is best known as the lead attorney for the Los Angeles Memorial Coliseum in its successful antitrust litigation against the NFL’s Raiders relocating between Oakland and Los Angeles.
Last week, Blecher wrote a letter to NBA executive vice president and general counsel Rick Buchanan, claiming that Sterling has done nothing wrong and that “no punishment is warranted” for the embattled owner. Blecher also informed Buchanan that Sterling will not pay the $2.5 million fine the NBA levied against him. “We reject your demand for payment,” Blecher said of the fine, which is well past due since May 14th. He ended the letter by saying this controversy “will be adjudicated.”
Unfortunately for Sterling, any lawsuit by him against the NBA would face a daunting task, as Sterling contractually agreed to follow the NBA’s system of justice.
Under Article 24(l) of the NBA constitution, it states:
The Commissioner shall, wherever there is a rule for which no penalty is specifically fixed for violation thereof, have the authority to fix such penalty as in the Commissioner’s judgment shall be in the best interests of the Association. Where a situation arises which is not covered in the Constitution and By-Laws, the Commissioner shall have the authority to make such decision, including the imposition of a penalty, as in his judgment shall be in the best interests of the Association. The penalty that may be assessed under the preceding two sentences may include, without limitation, a fine, suspension, and/or the forfeiture or assignment of draft choices. No monetary penalty fixed under this provision shall exceed $2,500,000.
Further, Article 13(a) states:
The Membership of a Member or the interest of any Owner may be terminated by a vote of three fourths (3/4) of the Board of Governors if the Member or Owner shall do or suffer any of the following:
(a) Willfully violate any of the provisions of the Constitution and By-Laws, resolutions, or agreements of the Association.
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Sterling willingly agreed to abide by the rules of the NBA in order to obtain a franchise. It will be nearly impossible for him to backpedal on this agreement now that it directly affects him.
Unfortunately for Sterling, any lawsuit by him against the NBA would face a daunting task, as Sterling contractually agreed to follow the NBA's system of justice. Under Article 24(l) of the NBA constitution…[….] Sterling willingly agreed to abide by the rules of the NBA in order to obtain a franchise. It will be nearly impossible for him to backpedal on this agreement now that it directly affects him. […..] Correct on ALL points DJ. And to paraphrase most sports legal analysts- Judges tend NOT to want to involve the court in these kinds of cases for just THAT reason – Sterling signed a contract agreeing to abide by the rules and now he (and his wife) want to "backpedal" on that agreement. Btw: I believe I heard ESPN's 'Mike & Mike' report this morning that a meeting of all the owners is scheduled to take place on June 3rd. It… Read more »