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To: SoFloFreeper
It was a private conversation.

We're now finding out that it may not have been an illegal recording. Sterling was apparently recorded with his knowledge. V. Stiviano, the mistress, apparently taped many, if not most, of their conversations with his knowledge. She allegedly has 100+ hours of audio.

However, it was a private conversation that became public.

The lifetime ban and $2.5 million fine have already been announced by the NBA Commissioner. These are pursuant to the NBA Constitution & Bylaws, which were a private document until yesterday, when the NBA released them. (How private? ESPN was stating that the NBA C&B were dated 10/05; the current C&B are dated 5/12.) The NBA Commissioner rules as an emperor.

Article 24(l):

"The Commissioner shall, wherever there is a rule for which no penalty is specifically fixed for violation thereof, have the authority to fix such penalty as in the Commissioner's judgment shall be in the best interests of the Association. Where a situation arises which is not covered in the Constitution and By-Laws, the Commissioner shall have the authority to make such decision, including the imposition of a penalty, as in his judgment shall be in the best interests of the Association. The penalty that may be assessed under the preceding two sentences may include, without limitation, a fine, suspension, and/or the forfeiture or assignment of draft choices. No monetary penalty fixed under this provision shall exceed $2,500,000."

Under Article 24(m), the Commissioner's rulings are final, and he has investigative abilities far beyond those of a normal prosecutor:

"Following an opportunity for the affected party to submit evidence and be heard, all actions duly taken by the Commissioner pursuant to this Article 24 or pursuant to any other 39 Article or Section of the Constitution and By-Laws, which are not specifically referable to the Board of Governors, shall be final, binding and conclusive, as an award in arbitration, and enforceable in a court of competent jurisdiction in accordance with the laws of the State of New York. In connection with all actions, hearings, or investigations taken or conducted by the Commissioner pursuant to this Article 24, (i) strict rules of evidence shall not apply, and all relevant and material evidence submitted may be received and considered, and (ii) the Commissioner shall have the right to require testimony and the production of documents and other evidence from any Member, Owner, or Referee, any employee of any Member or Owner, and/or any employee of the Association, and any person or Entity not complying with the requirements of the Commissioner shall be subject to such penalty as the Commissioner may assess."

It was a private conversation made public.

Only the NBA Board of Governors (the franchise owners) can terminate the ownership of a franchise owner (Article 13). That hasn't been done yet. The ground for termination are all specific, except for Article 13(a):

"The Membership of a Member or the interest of any Owner may be terminated by a vote of three fourths (3/4) of the Board of Governors if the Member or Owner shall do or suffer any of the following:

What violation? Early explanations from the NBA experts were that Sterling violated the obligation to conduct business on a "reasonable" and "ethical" level, as required by the 2005 C&B. That obligation no longer appears in the 2001 C&B.

What about the enforceability of a vote by the NBA Board of Governors to terminate Sterling's ownership? Contrary to what Sports Illustrated reported, franchise owners have not waived rights to sue the NBA. However, Article 18(e) of the NBA C&B says:

"All actions duly taken by the Board of Governors shall be final, binding and conclusive, as an award in arbitration, and enforceable in a court of competent jurisdiction in accordance with the laws of the State of New York."

Courts will generally honor an agreed-upon award in arbitration, but not necessarily so if the issue is an antitrust issue. Here, if the Board of Governors terminates Sterling's ownership, he would be forced to sell at a 'must sell' price.

All of this over a private conversation made public.

If Sterling is banned, who will run the Clippers? Probably Sterling's wife, Shelly. Sterling already has an agreement in place with the NBA that Shelly takes over the franchise if Sterling dies. Sterling has also been grooming his son-in-law to take over management of the franchise.

Who is V. Stiviano?

She met Sterling at the 2010 Super Bowl. She is half-Mexican/half-black and was born Maria Vanessa Perez. After she met Sterling, she legally changed her name to V. Stiviano, for the stated reason "Born from a rape case and having not yet been fully accepted because of my race."

She started her own line of hats and shirts under the V. Stiviano brand and promoted them on her Instagram account. In March, Shelly Sterling sued Stiviano for the return of more than $2.5 million in gifts Sterling gave Stiviano from California community property. Among these gifts are a $1.8 million duplex, a Ferrari, two Bentleys, a Range Rover, and $250,000 cash.

Stiviano is also being sued by the Clippers for embezzling $1.8 million, as announced by the Clippers on Saturday. Miss Stiviano's attorney, Mac Nehoray, was commenting on the audio and Ms. Stiviano's situation until yesterday, when his representative stated Nehoray was invoking the Fifth Amendment right against self-incrimination, citing the statement issued by the Clippers regarding the embezzlement.

Private statements that were made public, and Donald Sterling's the center of attention.

Ah. Per a.m. news, the Sterlings apparently settled a lawsuit that involved Shelly Sterling and racial comments, and depositions and testimony in the don't-rent-to-blacks-Latinos-and-people-with-children lawsuits against Sterling swear Shelly also engaged in 'get 'em out' discussions and orders. This is just going to get bigger, folks.

57 posted on 04/30/2014 5:40:26 AM PDT by Scoutmaster (I'd rather be at Philmont)
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To: Scoutmaster
Sorry. Article 13(a) reads:

"Willfully violate any of the provisions of the Constitution and By-Laws, resolutions, or agreements of the Association."

All other permissible reasons to terminate an owner's ownership are specific. When's the NBA going to tell us what provisions Sterling violated with his private conversation?

59 posted on 04/30/2014 5:46:55 AM PDT by Scoutmaster (I'd rather be at Philmont)
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