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Capital Gains taxes are at the heart of Donald Sterling's willingness to fight
Posted on 5/29/14 at 10:02 am
Posted on 5/29/14 at 10:02 am
Two weeks ago Sterling said he would bow out and take the punishment the NBA is enforcing on him. Last week he hired a legion of lawyers and they began to prepare a case. This week word leaks out that Sterling wants to fight the league and try to keep the team.
LINK /
LINK /
quote:
The mention of capital gains tax by Donald Sterling’s lawyer gets to the heart of the matter — in California the combination of state and federal taxes would force him to pay 33 percent of his profit on the sale in tax. He bought the team for $12.5 million more than 30 years ago, even if the team sold for $1 billion (and it’s expected to be higher, maybe much higher) that would be $333 million in taxes.
However, if Sterling holds on to the team until he passes (he is reportedly battling cancer) and the team goes to his relatives who sell it, they only pay capital gains on the difference between the estimated value at the time of his passing and the sale. That would be considerably less.
The league does not care.
They are moving ahead with their drive to force a sale. If the 29 other owners vote to terminate Sterling’s ownership, the league then takes over and sells the team (Sterling would get the profits from that sale). The league believes it has the right to do this because the Clippers are a a franchise and Sterling signed documents multiple times over the years agreeing to the league’s rules and bylaws. Most legal experts side with the league’s position.
Shelly Sterling is trying to say she will help sell the team, however as part of that she wants to keep a piece of the franchise as a minority owner — her identity is clearly largely tied to being the owner of the Clippers.
The league and its players will not tolerate that.
Expect the league’s owners to vote to terminate Sterling’s ownership of the team on June 3.
Expect the Sterlings to take this to court after that vote.
Expect this to continue to drag out. Because this is who the Sterlings are, this is what they do.
Posted on 5/29/14 at 10:06 am to supatigah
No one is going to put a down payment on the Clippers for a team that's going to be tied up in litigation for the conceivable future.
Posted on 5/29/14 at 10:07 am to supatigah
If I was owner, I wouldn't vote him out. You know, because of the implications.
Posted on 5/29/14 at 10:08 am to supatigah
california needs this team sold badly.
Posted on 5/29/14 at 10:08 am to TotesMcGotes
quote:
No one is going to put a down payment on the Clippers for a team that's going to be tied up in litigation for the conceivable future.
Posted on 5/29/14 at 10:10 am to Rickety Cricket
if sterling goes down he is taking Richard DeVos of the Magic with him.
Posted on 5/29/14 at 10:11 am to TotesMcGotes
there's already several offers. they will jump in the boat as fast as possible given the chance. It would probably be the nba's fight anyway. new owner i doubt would be at risk to lose anything. teams for sale in the 2nd biggest city in the country don't fall of trees.
Posted on 5/29/14 at 10:13 am to Chad504boy
You're right. No one would be hesitant to put hundreds of millions down, non refundable, for a team that may be tied up indefinitely.
Posted on 5/29/14 at 10:14 am to TotesMcGotes
quote:
No one is going to put a down payment on the Clippers for a team that's going to be tied up in litigation for the conceivable future.
agreed
plus:
1) they have a terrible stadium deal with the Staples Center that runs through 2024
2) they have a weak TV deal
3) they should move to Anaheim which would increase the revenue but would lower their profile
Posted on 5/29/14 at 10:14 am to Rickety Cricket
quote:
If I was owner, I wouldn't vote him out. You know, because of the implications.
Watched that episode last night.
Posted on 5/29/14 at 10:15 am to TotesMcGotes
quote:
You're right. No one would be hesitant
see, you just went from nobody will do it, to no one will be hesitant. There will be buyers who'd be willing. It's also possible there could be some investors that may be alittle put off but to say nobody is going to do it is retarded, theres' already ample evidence suggesting people throwing over a billion dollars at them.
Posted on 5/29/14 at 10:15 am to Chad504boy
If he sues, and it gets past the NBA's motion to dismiss, the most epic of depositions will be had.
He would be able to able to depose every owner, Commish, Stern, etc. and ask them anything he wants in relation to character of an NBA owner or officer.
The info out of that could melt the internet
He would be able to able to depose every owner, Commish, Stern, etc. and ask them anything he wants in relation to character of an NBA owner or officer.
The info out of that could melt the internet
Posted on 5/29/14 at 10:19 am to supatigah
quote:
3) they should move to Anaheim which would increase the revenue but would lower their profile
i guess public perception doesn't have anything to do with it?
there's a reason the Nets became Brooklyn and not New York part deux. they would have been seen as the second team in the market, instead of the first team in a suburb big enough to be its own market
as the Anaheim Clippers, they'd get the higher profile. they'd be Anaheim's team and still be in the LA market, but out of the Lakers' shadow
Posted on 5/29/14 at 10:22 am to Chad504boy
Those are bids for the team, and some are saying closer to $2 billion. Regardless, those bids are being made without a promise of a down payment. Nobody will put down between $200-400 million indefinitely.
Posted on 5/29/14 at 10:33 am to supatigah
Is that article forgetting about the 40% Federal estate tax rate?
Posted on 5/29/14 at 10:34 am to supatigah
If the NBA and commissioner Silver expected anything less than this, then he obviously knew nothing about Donald Sterling before he made his ruling.
Sterling's pretty much a troll who gets his jollies from dragging people through court until he gets his way.
Sterling's pretty much a troll who gets his jollies from dragging people through court until he gets his way.
Posted on 5/29/14 at 10:36 am to Chad504boy
quote:
there's already several offers
not quite, there are rumors of 5 potential ownership groups putting up bids but no one is sure if Shelly Sterling has the authority to sell the team
quote:
LOS ANGELES (AP) -- Shelly Sterling was reviewing bids from five groups interested in buying the Los Angeles Clippers, a person with knowledge of the negotiations told The Associated Press on Wednesday.
The individual, who wasn't authorized to speak publicly about the deal, said if an agreement to sell is reached before next Tuesday, the NBA's owners wouldn't meet in New York to vote on terminating Donald Sterling's ownership.
The individual wouldn't specify who the interested buyers were, but described them as major players with considerable financial means. The person told the AP the sale price "appears to be increasing to an unbelievable number," and that it could soar past $1.5 to $2 billion, and possibly more.
Another person familiar with the negotiations said Shelly Sterling's attorneys, bankers and others involved in the process were in a locked room reviewing the bids, which were due on Wednesday. The individual wasn't authorized to publicly discuss the sensitive and competitive negotiations.
Donald Sterling's attorney, Bobby Samini, said there would be no sale of the team without his client's involvement, though he declined to say whether Sterling was involved in reviewing bids or was in touch with Shelly Sterling.
"Mr. Sterling is an owner of the team, and there will be no sale of the team without his involvement," Samini said.
LINK /
there is a pretty big difference between submitting a bid for something and actually submitting a check
Posted on 5/29/14 at 11:01 am to supatigah
He bought the team he should be allowed to keep it.
Ban him, don't let him have institutional control kind of like a paper CEO.
This is such BS if a black owner said this shite about whites or others it would be oh he has the right from all the bad stuff whites did to his race. Guess what blacks still doing it to blacks in Africa.
Screw magic he got HIV by sleeping around on his wife thus committing adultery he has no room to cast stones.
Ban him, don't let him have institutional control kind of like a paper CEO.
This is such BS if a black owner said this shite about whites or others it would be oh he has the right from all the bad stuff whites did to his race. Guess what blacks still doing it to blacks in Africa.
Screw magic he got HIV by sleeping around on his wife thus committing adultery he has no room to cast stones.
Posted on 5/29/14 at 11:05 am to chalmetteowl
quote:
as the Anaheim Clippers, they'd get the higher profile. they'd be Anaheim's team and still be in the LA market, but out of the Lakers' shadow
Sure for a new ownership group, that could be a benefit, but in some social circles in LA, Orange County is second rate and too far to drive
the Clips used to play in the LA Sports Arena and they played some home games in "the pond" in Anaheim. A move to secure the Clips for Anaheim was pushed in 1996 and Sterling crapped on it:
LINK
Anaheim has grown a lot since then so it would make sense that the new ownership group would move the team - if they can
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