Testimony In One Sterling Trial Wraps Up

((HT: KCBS-TV))

One down, and what is it...??? Two cases in play...???

The first-filed (that's probably the best way to phrase it...) case by Donald Sterling against Shelly Sterling determining who is in charge of the Los Angeles Clippers is finished with its testimony.

Closing arguments begin Monday...

Naturally, both sides, both lawyers, and both Sterlings are thinking that they're doing well in the case.
Here's the word from outside the courtroom...


The closing arguments will detail whether Shelly pulled an end-run in getting control over her estranged husband or if judge Michael Levanas will side with the physicians who have declared him mentally incompetent in running the Sterling Family Trust and the Los Angeles Clippers.

The other two cases Donald Sterling has against his estranged wife and the NBA are still in play at present and have no end of discussions- whether frivolous or optimistic.

So Donald Sterling May Need A Sale To Cover A Huge Debt

((HT: MyFoxLA))

Darren Schield, the Chief Financial Officer of the Sterling Trust, took the stand in the court proceedings today in Los Angeles and admitted in open court that the Trust needs to sell the Clippers to cover half a billion dollars in outstanding loans for other Sterling properties.

Once Donald Sterling dissolved the Trust, the banks that are holding the notes could jump in and declare the Sterlings in default of the notes.

If the Clippers aren't sold, Schield admitted that Donald Sterling would have to dump that same amount of value in apartment buildings or other Sterling properties- a move that could flush the real estate market into the toilet.

Here's the coverage from the trial today that isn't all that optimistic


Ramona Shelburne said after the trial appearances today, Donald Sterling met with possible-new owner Steve Ballmer and his estranged wife, Shelly.

Sterling Trial Pushes Back Sale Deadlines

((HT: KABC-TV/LA Times, Panzer-Cook))

The end result of Shelly Sterling returning to the stand in the Donald Sterling competency hearing means that the sale completion of the Los Angeles Clippers is pushed back and won't meet the NBA deadlines.

What that means, really, is anyone's guess...

Does it affect the overall sale...? How patient will the league be over time if this drags on...? Will players be as patient as the league may or may not be if this drags out all the way to next season...?

Shelly Sterling described her husband's emotions in and around the time of the sale of the team to Steve Ballmer. Pierce O'Donnell, Shelly's lawyer, trumpeted his client's cause after the hearing.

Naturally...

Here's the latest from outside the courtroom


Judge Michael Levanas said the trial is taking next week off to let Donald Sterling's lawyer, Max Blecher, go on a planned vacation. Closing arguments are scheduled for July 28.

Donald Sterling Ordered To Testify

((HT: MyFoxLA))

After not showing up for the first day of his competency hearing after the request to move Donald Sterling's trail to a federal court, testimony is underway in an LA district court.

Donald Sterling himself was ordered to testify Tuesday and answer the charges put forth that he is mentally incompetent to run the Sterling Trust and, therefore, the Los Angeles Clippers.

Sandra Endo is outside the courtroom setting up a busy day
Los Angeles News | FOX 11 LA KTTV

The lawyers, Samini and O'Donnell, are especially looking forward to the jousting in open court as is the HQ to see just how much jousting there will, in fact, be and how Donald Sterling perceives himself in the proceeding.

Donald Sterling Does Not Like Doctors Or Lawyers, Shelly Sterling Denied TRO

((HT: MyFoxLA/TMZ.com))

And decided to leave a message to express his displeasure over the guy's appraisal of Sterling's mental state
It was a piece of work...
Los Angeles News | FOX 11 LA KTTV

In an LA Times piece by James Rainey and Nathan Fenno, Donald Sterling apparently also threatened Shelly Sterling's attorney, Pierce O'Donnell. Shelly Sterling claims it got SO bad that she wanted a restraining order from her husband and his representatives.

The judge assigned to the case, Michael Levanas, just asked the two sides to "tone down their communication" between now and the court date. The HQ will hold it's breath on that one...

And O'Donnell was getting the same treatment from Donald Sterling that the doctors were- AT THE SAME TIME:
Donald Sterling seems to be a man of singular focus...

On that same day, records filed Thursday showed, Sterling called his wife's attorney, Pierce O'Donnell. In remarks laced with obscenities, Sterling pledged to divorce his wife and "sue everyone," O'Donnell said in an affidavit.

"He said he did not care about the money it cost or what the claim would be, but that he was going to spend whatever money he has to litigate just to make my life miserable," O'Donnell said. "Mr. Sterling then shouted even louder, and said in a menacing tone, 'I am going to take you out, O'Donnell!'"

Sterling's attorney, Max Blecher, is just shrugging off his client as having a short fuse...

Sterling Versus Sterling Set For July

((HT: NBC Los Angeles))

It will be a four-day event in July- the probate court review of Donald Sterling disavowing his wife, Shelly's, idea of making the sale of the Los Angeles Clippers to Steve Ballmer. The court denied Shelly Sterling's call for relief.

Bobby Samini, the representative attorney for Donald Sterling at the hearing, says that his side will bring their own experts testifying on his client's mental state. Samini, naturally, says his client is fine for his age.

But ESPNLA's Ramona Shelburne got to pour over court documents that included the appraisals of Donald Sterling's mental state.

A sample from the three physicians:

One doctor, James E. Spar, who is affiliated with the division of geriatric psychiatry at UCLA, said he believes "Mr. Sterling is at risk of making potentially serious errors of judgment, impulse control and recall in the management of his finances and his trust.''

"In my opinion he is substantially unable to manage his finances and resist fraud and undue influence, and is no longer competent to act as trustee of his trust,'' Spar concluded.

Here's the view from Shelly Sterling's lead attorney, Pierce O'Donnell, outside the courtroom

Sterlings Working Both Sides Of The Street: Donald Looks To Sue, Shelly Looks To Sell

((HT: KTLA-TV/ESPNLA))

First, from KTLA's Christina Pascucci, via her Twitter:

#EXCLUSIVE #BREAKING I've learned #DonaldSterling plans to sue @NBA and will likely file suit by end of week

Filed through his attorneys, Blecher, Collins, Pepperman, and Joye the complaint involves the desire for a jury trial on a complaint of "Violations for Denial of Constitutional Rights, Breach of Contract, Antitrust Violations, Conversion, and Breach of Fiduciary Duty" whatever all that means...

At the same time, Shelly Sterling is looking to have all letters of intent in house by the end of business eastern time today and is ready to have Bank of America vet all serious bidders by the end of Thursday.

The LA Times James Rainey has word that Shelly Sterling's term letter calls for a 100-percent stake for the new owners- apparently, giving the impression that she will not be around. All that despite Donald Sterling's intent to stay owner and fight the NBA and his wife in the battle for ownership.

Getting all this...???

Rainey lists the main four to pay attention to as:

A Guggenheim group that includes Oprah Winfrey, Larry Ellison, and David Geffen
A Grant Hill-involved group that includes Ares Management's Tony Ressler and Tribune chairman Bruce Karsh
The Steve Ballmer group
A group of middle eastern investors

Bill Simmons, via his Twitter, maintains that Guggenheim will announce their intent Thursday, but the larger issue may be that the Sterlings want $300-million non-refundable up front of the purchase. That would be some kitty for lawyers as Donald Sterling (and, possibly, Shelly independently) would be in court.

Here's the Dean with Donald Sterling's initial response to the NBA's point-of-view from last night
((HT: NBC Los Angeles))


And, yes, it is now somewhat official as Ramona Shelburne confirms on her Twitter through Blecher that Donald Sterling has changed his mind since the letter to the NBA was sent a week ago.

Blecher says that "On May 22 that’s what [Sterling] wanted to do. But as time has evolved he’s come to a much more hardline position."

So Much for A Peaceful Resolution With The Sterlings

((HT: ABC News/USA Today/The Score))

Donald Sterling has issued a 32-page response to the NBA in the league's fight to oust him from being owner of the Los Angeles Clippers. In the 32-page tome, he is basically telling the league to stick it...

Big time...

Sterling's response claims the recording was made illegally in the state of California and therefore is inadmissable in any court proceeding. The morals clause some feel Sterling violated with his words, in Sterling's view, is meant only as an idea that is associated with the operation of a basketball franchise- not words spoken in the home.

Also, Donald Sterling's attorneys feel the fine given to their client is excessive and, if the team is ordered to be sold, the capital gains taxes would be huge and cause an unnecessary strain on the Sterling's finances...

Got all that...???

Shelly Sterling is planning her own response as well...

From Brent Schrotenboer of USA Today:

Shelly Sterling's response, which is being made separate from her husband Donald, was due by midnight (ET) Tuesday after the NBA filed formal charges last week against Donald Sterling, accusing him of damaging the league with racist remarks.

By reasserting her position as the innocent 50% owner, Shelly Sterling is building on her case that she should be able to retain at least some ownership stake in the team. Meanwhile, she is trying to sell a controlling interest in the team after her husband authorized her to sell it on his behalf.

Oh...

Bank of America was being consulted by the Sterlings on a sale...
The HQ wonders if they have a retainer...

Here's the interview Shelly Sterling did with the "Today Show" about her husband's mental state- just as a refresher for the innocent 50-percent owner...
((HT: NBC News))

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Shelly Sterling Met With Steve Ballmer Over Clippers, But Don't Bet On A Move

((HT: Ramona Shelburne/The Score))

Shelburne's Tweet credited TMZ Sports with the news here- which would reinforce a few things from KING5-TV's Chris Daniels conversations in the last month or so...

TMZ reports, however, a concern over a move of the Clippers to Ballmer's home turf of Seattle.

But, Shira Ovide's interview with Ballmer in the Wall Street Journal before his commencement address to students at Southern Cal's Marshall School of Business, pooh-poohs any such idea:

The HQ reversed the two questions Ovide asked Ballmer for the sake of not blowing continuity of copy...

WSJ: So you wouldn’t move the Clippers to Seattle?

Ballmer: If I get interested in the Clippers, it would be for Los Angeles. I don’t work anymore, so I have more geographic flexibility than I did a year, year-and-a half ago. Moving them anywhere else would be value destructive.

WSJ: You’ve tried a couple times to buy an NBA franchise to return a basketball team to Seattle. Are you interested in the Los Angeles Clippers, if the team goes up for sale?

Ballmer: I have nothing definitive to say. Am I right on top of what’s going on there? Absolutely I am. I love basketball, and I’d love to participate at some point in the NBA. If the opportunity is outside of Seattle, so be it. I will learn about any team that comes up for sale at this point.

Re-running Hansen's piece from last month about a possible move, here's the thoughts and they're not all that optimistic for the pacific northwest- and this was last month:
((HT: KING5))

But, remember, any Hansen-Ballmer sniff of the Clippers better go through proper channels with commissioner Adam Silver and the NBA office or the duo could be shut out entirely. Just because Ballmer may meet with Shelly Sterling doesn't mean much for putting them at the front of the line for prospective owners of the team.

For Hansen-Ballmer, their first phone call after securing the meeting with Sterling and her lawyer, Pierce O'Donnell, better have been to New York City if they want to play in the reindeer games down the line.

NBA Starts Process To Get Rid Of Sterling (UPDATED With Reax)

((ht: usatoday.com))

And so it begins.

The NBA has taken the 1st official steps to begin the process of removing Donald Sterling as the owner of the Los Angeles Clippers.

The league has filed official "Charges" stating Sterling has "engaged in conduct that has damaged and continues to damage the NBA and it's teams".

We could go on and on about the various groups the highly controversial owner has managed to find a way to insult over the past month, but it would take a little longer than we have to write this.

The leagues press release states Sterling has until May 27th to respond to the charges and a hearing to end his ownership will happen June 3rd.

And yes, Sterling has already said he'll fight any and all comers and is prepared to have his lawyers do what he believes necessary.

Unfortunately, this is the outcome most expected. Sadly this may get uglier...much uglier, before it gets resolved.

Kinda like this...
((HT: ABC7 Los Angeles))


Here is the release in full from the NBA:

The NBA initiated a charge today seeking to terminate the ownership of Donald Sterling in the Los Angeles Clippers. If the NBA Board of Governors sustains the charge by a 3/4 vote, all ownership interests in the Clippers will be terminated and the team will be sold to new owners.

The NBA Constitution provides Mr. Sterling with the opportunity to respond to the charge by May 27, as well as the right to appear and make a presentation at a special meeting of the Board of Governors. This hearing, which is planned for June 3, will be presided over by NBA Board of Governors Chairman Glen Taylor, the controlling Governor of the Minnesota Timberwolves.

The charge asserts that Mr. Sterling engaged in conduct that has damaged and continues to damage the NBA and its teams. Among other things, Mr. Sterling disparaged African-Americans and “minorities”; directed a female acquaintance not to associate publicly with African-Americans or to bring African-Americans to Clippers games; and criticized African-Americans for not supporting their communities.

Mr. Sterling’s actions and positions significantly undermine the NBA’s efforts to promote diversity and inclusion; damage the NBA’s relationship with its fans; harm NBA owners, players and Clippers team personnel; and impair the NBA’s relationship with marketing and merchandising partners, as well as with government and community leaders. Mr. Sterling engaged in other misconduct as well, including issuing a false and misleading press statement about this matter.

All of these acts provide grounds for termination under several provisions of the NBA Constitution and related agreements.

1815 UPDATE: Leaving no opportunity to waste, Shelly Sterling's attorney Pierce O'Donnell released a statement as well...

Shelly Sterling's lawyer, Pierce O'Donnell, released a statement on Monday.

"We have just received the voluminous charges and are beginning the process of carefully reviewing them," O'Donnell said. "Based on our initial assessment, we continue to believe there is no lawful basis for stripping Shelly Sterling of her 50 percent ownership interest in the Clippers. She is the innocent estranged spouse. We also continue to hope that we can resolve this dispute with the NBA for the good of all constituencies."

NBA Thinks They Can Bump Shelly Sterling, Too...

((HT: NBA/ESPN))

The NBA thinks they have the legal-wrangling room to make sure Shelly Sterling doesn't get to stay as 50-percent owner of the LA Clippers, either.

Ramona Shelburne has been on top of the story since the beginning.

She reveals the gambit:

Shelly Sterling -- while entitled to a 50 percent interest in the franchise -- has never been approved by the board of governors as the controlling owner. She and team president Andy Roeser, who went on an indefinite leave of absence this week, were only alternate governors.

Odds are she won't be approved by the Board of Governors as the big boss- considering her marriage and recent video that has surfaced where she has defended her husband as not being a racist.

Here's Sterling's lawyer making his peace


This looks like it's beyond going to get ugly...

Shelly Sterling Wants To Keep The Clippers

((HT: KABC-TV))

Of course, she does...

Color the HQ shocked...


She has hired attorney Pierce O'Donnell to represent her interests and, as the HQ has maintained the entire time, if she files for divorce from Donald Sterling the co-ownerships muddies the waters a great deal. But if the league continues to try and see how Shelly Sterling locks in to this whole situation, if you find the videos where Shelly backs her husband and claims he is not a racist it's going to be an interesting race to see who gets the Clippers.

O'Donnell said Shelly Sterling was defending herself and not her husband.

Of course, he did...