Donald Sterling Is a 'Cloud' Hovering Over Clippers, Team Interim CEO Says

Originally posted at 3:23 p.m. July 22, 2014. Edited with new details.

By FRED SHUSTER
City News Service

Donald Sterling's continued ownership of the Los Angeles Clippers is a "cloud" over the franchise that could lead to a defection of sponsors, players and possibly head coach Doc Rivers, the team's interim CEO testified today.

"The cloud that hangs over the team is the continued ownership of Mr. Sterling," Richard Parsons testified in the non-jury trial of a lawsuit by Shelly Sterling seeking to affirm her ability to sell the Clippers to former Microsoft CEO Steve Ballmer for $2 billion.

Parsons predicted dire consequences for the team if it isn't sold, noting that the team's sponsors have conveyed a message that "we're in if Donald Sterling is out."

He also said players and even Rivers may opt to leave the team unless there is a change in ownership. Parsons said if Rivers leaves the team, it could begin a "death spiral" for the franchise, sparking a series of departures.

Sterling has been under pressure to sell the team since the release of recorded conversations between him and companion V. Stiviano. In those conversations, Sterling criticizes her for having her picture taken with black people and tells her not to bring them to Clippers games.

The comments earned Sterling a lifetime ban from the NBA, which also fined him $2.5 million. The NBA has suspended its effort to remove Sterling as an owner, pending a judge's decision on the proposed sale to Ballmer.

Superior Court Judge Michael Levanas is being asked to decide if Shelly Sterling acted properly when she took over the family trust -- an action she took after two doctors proclaimed her husband mentally incompetent. Donald Sterling contends he was duped into the examinations by the doctors, and claims his revocation of the Sterling Family Trust negated her ability to sell the team.

Anwar Zakkour, a Bank of America investment banker who advised the Sterling trust on the proposed sale, testified today that there were three bids for the team -- at $1.2 billion, $1.6 billion and Ballmer's offer of $2 billion.

"We were doing back flips," Zakkour said of the Ballmer bid. "We thought it was a home run."

The banker testified that Forbes magazine had valued the Clippers at $575 million.

"None of us believed we could get to $2 billion," Zakkour said.

On Monday, Sterling, 80, met with Ballmer in Beverly Hills, signaling the possibility that Sterling might be warming to the idea of selling the team, although no details were released about the tenor of the meeting.

But late today, ESPN reported that Sterling filed a new Los Angeles Superior Court lawsuit challenging the sale. The lawsuit names the NBA, commissioner Adam Sterling, the Clippers and Shelly Sterling, alleging the proposed sale is a violation of corporate law. The lawsuit contends his revocation of the Sterling Family Trust on June 9 reverted full control of the corporation that owns the Clippers to him, meaning his wife has no authority to sell the team, according to ESPN.