Judge rules in favor of Shelly Sterling; OKs sale of Clippers to Steve Ballmer
On Monday, a California probate judge ruled that Shelly Sterling, wife of notorious racist curmudgeon Donald Sterling, could indeed move forward in her deal to sell the Los Angeles Clippers to former Microsoft CEO and Seattle-area resident Steve Ballmer for a league-record $2 billion.
In California, a living trust must be executed to avoid probate in the event of death. It is a legal document that “partially substitutes for a will,” according to the State Bar of California website. Any assets belonging to the creators of the living trust to be administered for the owners benefit during his/her/their lifetime, and then transferred to any beneficiaries upon death. Even though one’s assets remain in a trust, the owner is still in control of them during his or her lifetime. Usually, when a living trust is established, it names a trustee to take over the trust’s management if the owner of the trust is unable to do so him or herself. Here, Donald allegedly gave Shelly permission to sell the team, but rescinded that consent amid an apparent struggle with dementia.
Well, as it turns out, that wasn’t an argument in his favor. Doctors in geriatric psychiatry at UCLA examined Sterling and determined that he displayed early signs of Alzheimer’s disease and court filings said he was “substantially unable to manage his finances.” He was consequently removed as co-trustee, giving Shelly unilateral power over the family trust and therefore the legal authority to sell the team. Donald’s lawyers accused the doctors’ findings of being a “sham,” even though he consented to an evaluation prior to trial.
For the NBA, this is clearly the best way things could have shaken out. As I previously mentioned, it is my opinion that Donald Sterling wasn’t actually in violation of the NBA’s constitution and by-laws (just an awful person profiting off black men, whom he doesn’t think certain other folk should be seen with, for the past 30 years or so). However, if he’d been allowed to maintain any clout with the team, the NBA’s embarrassment of a situation would continue to be a distraction across the board. The transaction, expected to close August 13th, couldn’t come soon enough for Adam Silver and gang: “We are pleased that the court has affirmed Shelly Sterling’s right to sell the Los Angeles Clippers to Steve Ballmer,” said NBA Spokesman Mike Bass. “We look forward to the transaction closing as soon as possible.”
On July 22nd, Richard Parsons (interim CEO for the Clippers) testified that Doc Rivers told him he would quit if Donald Sterling remained owner of the team. It was apparent, given additional controversial commentary and past legal troubles that plagued Sterling, he was ill equipped to maintain any integrity in the organization if he could keep the team.
The grumpier Sterling’s lawyers plan to appeal, but rarely will judges overturn a probate court’s decision on the facts. Donald has also unleashed lawsuits against Shelly, the NBA, and Adam Silver alleging fraud, unfair business practices, breach of contract, and my personal favorite, infliction of emotional distress.
Meanwhile, we in Seattle are left wondering whether or not this means the NBA will return to our city. For the time being, it appears not. The Clippers are simply too profitable in L.A. thanks to those bandwagon Laker deserters. Controversial situations haven’t stopped buyers from uprooting teams before (cough, Clay Bennett), but my guess is the NBA wouldn’t approve such a move anyways. For now, we dare to dream. But hey, future Coach Payton may be getting some experience, and at least the Clippers are freed of an owner too ashamed to be seen in public with them.
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