Donald Sterling Pulls Out of $2 Billion Clippers Sale; Prepares for $1 Billion Federal Lawsuit Against the NBA
Donald Sterling has rejected the $2 billion deal to sell the Los Angeles Clippers to former Microsoft CEO Steve Ballmer Monday, effectively halting the transfer of his ownership of the team. The suddenly emboldened team owner has instructed his legal team to restart a federal lawsuit against the NBA for $1 billion, according to reports.
Donald Sterling had agreed to sell the team and transfer ownership after being excoriated by the public for his racist commentary leaked by former mistress V. Stiviano. NBA Commissioner Adam Silver also banned Sterling from any games and associated organizations for life and fined him $2.5 million for the offense— penalties the beleaguered owner believed would be removed upon the sale of the Clippers. However, when he discovered that the lifetime ban and fine would not be revoked, Sterling apparently changed his mind, according to the Associated Press.
The 80-year-old's attorneys said that Sterling initially assumed "all their differences had been resolved" with his estranged wife Shelly's negotiation of the $2 billion sale and was ready to drop the lawsuit, but now the case will move forward.
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"We have been instructed to prosecute the lawsuit," Sterling's attorney Max Belcher said Monday.
The $1 billion federal lawsuit argues that the tape of Sterling warning V. Stiviano not to bring African-Americans to the Clippers games was an "illegal" recording. The lawsuit also claims that the NBA committed a breach of contract by fining him $2.5 million and violated antitrust laws by forcing his sale of the LA Clippers.
Still, NBA Commissioner Adam Silver partially addressed Sterling's lawsuit against the organization, saying that the litigation may not matter in the long run, even if Sterling wins a legal victory.
"As part of the sale agreement with Shelly Sterling, she agreed to indemnify the league against a lawsuit by her husband," Silver said during his NBA Finals address. "So in essence, Donald is suing himself and he knows that. … I think it's just a matter of time now, and then we will move on to better topics and back to the Finals."
Indeed, Sterling has come close to selling his team in the past and suddenly reneged on the deal, something Silver said that the owner is known for.
"He's unsold his club several times over the years," Silver told CNN in an interview. "There's well-noted incidents in the league when he was right there at a closing and at the last minute decided not to sell. And until he signs that document, we still have a pending litigation with him."
