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re: Who sets the price for the forced sell of the Clippers?
Posted on 5/1/14 at 3:02 pm to NawlinsTiger9
Posted on 5/1/14 at 3:02 pm to NawlinsTiger9
Yeah it'll be a lot. It's LA and the clippers are the team in that city right now when it comes to having the talent.
And I wouldn't say they are in dire straits to sell it. They were in dire straits to remove Sterling. They did that. His wife owns it as well, and his son works for them. They just want Sterling out of there, and he is. And they will most likely force him to sell the majority of his stake. But they can't make him sell it for cheap. Especially if it's well under the value of the team. Because the value of the Clippers is at an all time high.
And I wouldn't say they are in dire straits to sell it. They were in dire straits to remove Sterling. They did that. His wife owns it as well, and his son works for them. They just want Sterling out of there, and he is. And they will most likely force him to sell the majority of his stake. But they can't make him sell it for cheap. Especially if it's well under the value of the team. Because the value of the Clippers is at an all time high.
This post was edited on 5/1/14 at 3:05 pm
1
Posted on 5/1/14 at 3:05 pm to BayouNation
I would like to buy one clipper please.
Posted on 5/1/14 at 3:13 pm to KG5989
quote:
And I wouldn't say they are in dire straits to sell it. They were in dire straits to remove Sterling. They did that. His wife owns it as well, and his son works for them. They just want Sterling out of there, and he is.
Hannagriff talked about this yesterday on his show. The thing most people don't understand about forcing Sterling to sell is the tremendous capital gains tax he's facing if he sells to an outsider. If he sells the team for $750 million, he made $738 million in capital gains. The tax bill on that is $200-$300 million dollars. There's no way Sterling will willingly pay that, so he'll hold it up in court for as long as he can if the NBA wants a totally different family running the team.
Now, if the NBA allows him to transfer the team to his family, they avoid most of the capital gains tax because they'll sell it for pretty close to its current value. Sterling would want to do it that way, but the league may not want his family involved at all either.
I agree, this part of this story is really the only interesting party.
Posted on 5/1/14 at 3:16 pm to NorthshoreTiger76
Those are usually valued by an independent firm.
Posted on 5/1/14 at 3:21 pm to Vicks Kennel Club
Well aren't you a slave master reincarnate.
Posted on 5/1/14 at 3:25 pm to ProjectP2294
quote:
Especially when the other parties know it's a forced sale.
That shouldn't matter. It's not like NBA teams (especially ones in a market like LA) come up for sell very often.
Posted on 5/1/14 at 3:25 pm to medtiger
Incorrect on the transfer. He has to pass away and will the team to a family member to only pay the difference between the appraisal price and actual sale price. Any other way he pays 33.3 percent tax on anything over 12.5 mil. He will drag this out until he dies.
Edit - his legal team is preparing an anti trust claim against the nba for interference on him to earn a living. This came from an espn legal reporter
Edit - his legal team is preparing an anti trust claim against the nba for interference on him to earn a living. This came from an espn legal reporter
This post was edited on 5/1/14 at 3:29 pm
Posted on 5/1/14 at 3:28 pm to medtiger
Assuming Sterling falls into the highest tax bracket, he would pay 20% on the $738 million difference so he would be paying about $150 million.
I would imagine the sell of the team would go through arbitration.
I would imagine the sell of the team would go through arbitration.
Posted on 5/1/14 at 3:30 pm to TheRookbird
The team sale would be considered a capital gain which is taxed at 33% which includes Cali state tax
This post was edited on 5/1/14 at 4:05 pm
Posted on 5/1/14 at 3:31 pm to theBeard
quote:
The team sale would be considered a capital gain which is taxed at 33%
It would be long term which would be 20%. Short term would be taxed at his income tax rate which would assumedly be 39.6% but he's owned the Clippers for longer than a year.
This post was edited on 5/1/14 at 3:34 pm
Posted on 5/1/14 at 3:32 pm to TheRookbird
He could technically divorce, his wife would take half the team, and let his wife buy his half for 'market value' (~$300mil).
How much tax would that be? the 33% still?
How much tax would that be? the 33% still?
This post was edited on 5/1/14 at 3:33 pm
Posted on 5/1/14 at 3:33 pm to fleaux
quote:
Who sets the price for the forced sell of the Clippers?
It depends what the going rate is three years from now when his lawyers are done messing with the NBA
Three years? If the NBA is lucky maybe this will drag out 5 to 10 years.
Posted on 5/1/14 at 3:34 pm to BayouNation
Probaby a sealed bidding process
Posted on 5/1/14 at 3:35 pm to medtiger
Well his wife owns the Clippers as well. They set it up to where it was joint ownership IIRC.
So, they got rid of Donald. But if they force him to sell, its not just his stock that he would be selling. It would be hers too. And I dont know how they would do that, because they didnt remove her from the NBA or anything like that. It was all on him. Can they force her to sell as well?
So, they got rid of Donald. But if they force him to sell, its not just his stock that he would be selling. It would be hers too. And I dont know how they would do that, because they didnt remove her from the NBA or anything like that. It was all on him. Can they force her to sell as well?
Posted on 5/1/14 at 3:36 pm to htran90
quote:
He could technically divorce, his wife would take half the team, and let his wife buy his half for 'market value' (~$300mil).
I guess he could do that if he wanted to go scorched earth, but she would take half of everything else. A pretty big hit just to give a middle finger to the NBA.
Posted on 5/1/14 at 3:38 pm to htran90
1 billion - 12.5 mil =987,500,000 x .33 = 325,875,000 in taxes
if he dies and wills the team and it appraises for 700mil
1 billion - 700 mil = 300mil x .33 = 99,000,000
so delta of 225 mil
if he dies and wills the team and it appraises for 700mil
1 billion - 700 mil = 300mil x .33 = 99,000,000
so delta of 225 mil
Posted on 5/1/14 at 3:38 pm to BayouNation
N
This post was edited on 5/1/14 at 3:43 pm
Posted on 5/1/14 at 3:46 pm to theBeard
quote:
1 billion - 12.5 mil =987,500,000 x .33 = 325,875,000 in taxes
if he dies and wills the team and it appraises for 700mil
1 billion - 700 mil = 300mil x .33 = 99,000,000
so delta of 225 mil
Where do you keep getting 33%?
Posted on 5/1/14 at 4:01 pm to TheRookbird
Posted on 5/1/14 at 4:16 pm to theBeard
First, if he died, his heirs would not have to pay capital gains taxes on his property because it would re-valuate at the current value for capital gains.
Second, the state capital gains would depend on where he makes his residence. It very well might be California, but if he's a resident of Texas, he wouldn't have to pay that.
Third, he's also going to get popped for another 3.8% starting next year for Obamacare.
Second, the state capital gains would depend on where he makes his residence. It very well might be California, but if he's a resident of Texas, he wouldn't have to pay that.
Third, he's also going to get popped for another 3.8% starting next year for Obamacare.
This post was edited on 5/1/14 at 4:18 pm
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