In this case, contract law would not override the statute. California law is very clear, illegal recordings may not be used in any proceeding, civil or criminal, except to prosecute the criminal who made the recordings. So, the NBA never could bring into any court proceeding the evidence it used to kick Sterling out of the league or fine him. They would therefore have not been able to show grounds why their charter and rules allow him to be kicked out.
Valid point. Hence my point that the recording is illegal is a caveat.
The way the recording has been treated, I assumed the state where it was made allowed recordings if one party knew it was being recorded. If this is not that sort of state, shouldn’t criminal charges be brought against the person making the recording?