There is probably a proviso that says if an owner does something that hurts the value of either the franchise or league he can be terminated as owner.
At the time, sponsors were dropping support for the clippers and other teams.
Actually the NBA franchise agreement terminations clauses only apply to a failure of a franchise to meet its financial obligations.
The is also a bylaw that requires players “to be of good moral character”. That bylaw ignored on an ongoing basis.