Posted on 05/01/2014 2:25:40 PM PDT by Responsibility2nd
Slate, Why the NBA’s Punishment Could Cost Donald Sterling More Than $100 Million
Sports Illustrated, Important Tax Law Considerations: Avoiding Capital Gain Taxes
Vox, The $200 Million Reason Donald Sterling Doesn't Want to Sell the Clippers — Capital Gains Taxes
Washington Post, What Donald Sterling Could Make If He’s Forced to Sell the Clippers
Forbes, How Clipper's Sterling Could (Maybe) Avoid a Tax Bill Today:
100 Million? 200 Million?
The SI article suggests a much higher amount...
For instance, if he sold the Clippers today for $1 billion, Sterling would pay capital gain taxes of 33 percent on a gain of $987.5 million. As a result, Sterling would owe Federal & state capital gain taxes of approximately $329 million.
I hope he sues the NBA.
The NBA recently owned the Saint/Pelicans down there in Loozy-Anna.
If they are so intent on forcing Sterling out - then hey. Make him an offer. I’d sell for 1.5 billion. That’d pay the Capital Gains tax and I’d make a little profit off of my initial 12.5 million dollar purchase.
Heh heh heh....
I’ve heard that the team is actually owned by the Sterling Trust, which in turn is run by him, his estranged wife, and children.
His wife was suing the girl over gifts given her by Sterling. I wonder if the wife and children as part of the trust, would have to be involved in the sale.
So its a win-win-win for political correctness, lefty-buyers of the team, and Government!
Well, if he get’s some bleeding heart liberal buyers who pay double what they should, so what? He’ll still come out ahead.
The buyer’s will pay the taxes not him.
Sue baby sue.
For once we would have some interesting litigation.
Or if he can solve the supposed problem by transferring the team to his family. Then he no longer owns it, but his kids and (possibly estranged) wife do.
Be kinda funny if Clippers won the title...
For what he said he should have all he owns taken from him and be sent to prison for life. He is worse than Hitler.
On FOX they were saying that any forced sale would be difficult since in California the wife owns 50%. On HLN they were screaming about banning the entire family from basketball and calling him a monster. It was kind of funny for a while to watch the hysterical talking heads rave on HLN but soon it became boring.
The same section of the NBA Constitution which gives the Commissioner the power to sanction owners provides that the Commissioner's decision is final and cannot be reviewed in court. That would probably (but not definitely) be upheld if Sterling challenged it.
How do you figure that?
Then he'd pay gift tax on the transfer.
I may be all wet here, but I think that the courts are all going to have a tough time with this issue.
One of the legal tenants of our nation has always been that no man may be deprived of, ‘Life, Liberty or their property’ without due process.
While I agree that what Sterling said was wrong, stupid and idiotic, it was not illegal. Not even close.
It would probably be a good thing that Donald is no longer involved with the Clippers. Having said that, I believe that forcing him to sell the Clippers would set a very dangerous precedent(not so much a slippery slope, but more like skydiving without a parachute).
With one leg of our jurisprudence kicked out from under us, the other two would also eventually fall.
If the guy didn’t already have the team in a trust (and it could be that NBA rule prohibit such), he’s a dumba** and deserves any losses he incurs
There is a POLL on this page and it shows 75% think that the owner was dealt an raw handed over punishment
FREEP THIS POLL
The bleeding hearts may not follow their brains but their hearts and pay 2-3 times what he could normally get. He could walk away with more than a normal sale.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.