The madness is almost over. Nearly a month after LA Clippers owner Donald Sterling was exposed by former employee V. Stiviano for making racist comments, wife Shelly has just completed the sale of the team for a reported $2 billion. The voluntary sale to former Microsoft CEO Steve Ballmer came in the nick of time before the NBA could convene to vote on a forced sale of the team, wresting control from the Sterlings altogether. Sterling was banned from the league following the controversy, and came under fire from players and the public. Now he's suing the NBA.
While Shelly Sterling's sale agreement provides indemnity for the NBA in the event of a suit, Donald still intends to sue for damages as he feels the whole proceeding was unlawful (via NPR):
"The purpose of the $1 billion lawsuit against the NBA, Blecher said before the NBA's announcement, is to seek damages for Sterling's lifetime ban and termination of ownership. The lawsuit alleges Donald Sterling's constitutional rights were violated from using information from an 'illegal' recording. The NBA called the lawsuit baseless."
While many financial experts are quick to point out that Ballmer overpaid considerably for the team, others insist that its intangible value as a finite commodity is immeasurable. Plus, the fact that Ballmer is already baller means that the team doesn't technically need to net him a profit. It's the symbol of owning a professional sports team that many ultra-wealthy folks see as a crown jewel in their collection (via LA Times):
"'This reflects an enormously wealthy person buying a toy,' said Lawrence Mishel, president of the Economic Policy Institute, a Washington think tank. 'It's not a financial investment.
"If it were, the prospects for near-term profitability are at best questionable, according to experts in valuing sports franchises. Some observers believe the scarcity of available professional sports franchises makes almost any deal a good bet for the long term. But others see no financial justification."
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