This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

NBA Commissioner Seeks to Force Turnover of Clippers

NEW YORK (The Deal) -- With the move by National Basketball Association commissioner Adam Silver to force Los Angeles Clippers' owner Donald Sterling to sell his team, industry watchers expect a robust auction that could see the team sell for upward of $1 billion.

"There would be plenty of interest and it would command a pretty strong price," said Larry Grimes, head of W.B. Grimes & Co., an investment bank focused on sports and media businesses." When you look at recent NBA deals, i.e. Milwaukee, even bad teams are getting good valuations."

Silver, who took the helm of the league in January, said Tuesday at a press conference that he would seek approval from the league's owners to force a Clippers sale.

"I will urge the board of governors to force a sale of the team and will do everything in my power to ensure that happens," Silver said. "The process will be begin immediately."

Must Read: EBay: We Are Not Announcing Any Large U.S. Acquisition

WATCH: More feature videos on TheStreet TV | More videos from Kori Hale

In response to a question at the news conference, called to announce the decision, Silver explained that Sterling can be removed if three-quarters of the league's owners vote to do so. He added that the ban applies only to Sterling personally, not to members of his family. Silver also said he had "no idea" whether Sterling would fight the move to remove him as owner.

The decision comes after Sterling, a former personal injury lawyer turned real estate mogul, was recorded making racist comments by a former mistress. Sterling has been fined $2.5 million - the maximum penalty allowed by the NBA - and has been banned for life from associating with the league and the team.

"We wholeheartedly support and embrace the decision by the NBA and Commissioner Adam Silver today," the Clippers said in a statement issued Tuesday. "Now the healing process begins."

While the NBA commissioner wants Sterling out, potential buyers should not count on getting a bargain.

"It's certainly not going to be a fire sale; if [Sterling's] past is any indicator I think he would sue the league if it was turned into a fire sale," said Grimes. "He is going to get top dollar for this, baggage or not."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
AAPL $121.30 0.00%
FB $94.01 0.00%
GOOG $625.61 0.00%
TSLA $266.15 0.00%
YHOO $36.67 0.00%


Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs