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re: Who sets the price for the forced sell of the Clippers?
Posted on 5/1/14 at 3:13 pm to KG5989
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.
3
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 3:35 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?
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