If government cannot use such evidence to take a person’s property, how can a private business do so?
And to use a simple example: The first amendment protects free speech, but see how long you keep your job if you tell n****R jokes, especially around customers. The first amendment may protect the speech, but you’ll still lose your job over it.
However, the caveat here is that the conversation in this case was completely private as well as illegally obtained.
In this case, contract law would not override the statute. California law is very clear, illegal recordings may not be used in any proceeding, civil or criminal, except to prosecute the criminal who made the recordings. So, the NBA never could bring into any court proceeding the evidence it used to kick Sterling out of the league or fine him. They would therefore have not been able to show grounds why their charter and rules allow him to be kicked out.