Saturday, May 31, 2014

Donald Sterling found to be mentally incapacitated

The Los Angeles Clippers saga continues to churn
with contested information that could affect the
team's future and its ownership -- this time
centered on co-owner Donald Sterling's mental
state.

Two neurologists have deemed Donald Sterling to
be mentally incapacitated, two sources with detailed
knowledge of the situation told CNN on Friday.

Sterling's lawyer, Maxwell Blecher, firmly shot down
this report, calling such a declaration a "vast
overstatement." Blecher said the 80-year-old was
diagnosed with a "modest mental impairment" or a
"slowing down."
"(Sterling is) far from incapacitated," his lawyer
said.

This could be significant if it affects Sterling's claim
to control the Clippers and fight the NBA.

Commissioner Adam Silver banned
Sterling from the NBA for life in April
over racist comments Sterling made in
a private, taped conversation. Silver
also pushed to force Sterling to sell off
his franchise.

In public comments and official
documents, Sterling and his lawyer
have challenged the NBA on various
fronts.

And on Friday, Blecher says he would
not deny an NBC News report that
Sterling is suing the league for $1
billion in damages in the wake of the
push to force him to sell.

It's not clear how the designation of
Sterling being or not being mentally
incapacitated might factor into this
story going forward, including this
lawsuit and the Clippers' possible sale.

According to one of the sources, there
is a provision in the Sterling family trust
that says if either Donald Sterling or his
estranged wife, Shelly Sterling, become
mentally incapacitated, then the other
becomes the sole trustee.

That could smooth the way for $2
billion deal that Shelly Sterling
negotiated with former Microsoft CEO Steve Ballmer
for the team.

Asked about such a sale, Blecher said Donald
Sterling "is looking at the whole situation and
evaluating where to go from here."
"He doesn't want to fight with Shelly. That's the
bottom line," Blecher said.

Earlier Friday, Shelly Sterling confirmed the
agreement with Ballmer, a sale that would still have
to be approved by three-quarters of the NBA's
Board of Governors.

"We have worked for 33 years to build the Clippers
into a premiere NBA franchise," she said in a
statement. "I am confident that Steve will take the
team to new levels of success."

Who is Steve Ballmer?

If the deal goes through, it would be the largest sum
paid for an NBA franchise. Last month, the
Milwaukee Bucks, a team with a losing record in a
small television market, sold for $550 million.

Ballmer is worth $20 billion, according to Forbes
magazine.

"I love basketball. And I intend to do everything in
my power to ensure that the Clippers continue to
win -- and win big -- in Los Angeles," Ballmer said
Friday.

While Sterling's camp has threatened to sue the
NBA, there's no question that -- if the sale goes
through -- it would mean a huge windfall for him
and his family.

The real estate investor bought the Clippers for
about $12 million in 1981.

While he has faced legal trouble before -- including
a wrongful termination lawsuit from the team's
longtime general manager Elgin Baylor, which
Sterling one -- his status as the Southern California
franchise's controlling owner wasn't officially
challenged until this spring.

That's when TMZ posted audio of a conversation
between Sterling and his companion, V. Stiviano, in
which he made racist comments that quickly got the
attention of NBA fans, players and executives.

Many felt that Sterling didn't help himself when he
talked days later with CNN's Anderson Cooper,
including his calling out of basketball legend Magic
Johnson.

As some corporate sponsors dropped and amid
threats that players might boycott, Silver stepped
up quickly to ban Sterling and fine him $2.5 million.

Following through on the commissioner's vow, the
NBA "initiated a charge" on May 19 seeking to
terminate all of Sterling's ownership rights in the
franchise.

That set the stage for a Board of Governors meeting
on Tuesday, one in which Donald Sterling would be
allowed to present his case.

It's not immediately clear how the recent
developments -- including a possible sale of the
Clippers to Ballmer and questions about Donald
Sterling's mental state -- will affect this meeting, if
it takes place at all.

How Ballmer's $2 billion Clippers deal could pay off

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