dagblog - Comments for "Donald Sterling, the NBA, and the Free Rider Problem"

I think that Sterling may

rmrd0000 — Tue, 13 May 2014 16:21:12 +0000

In reply to That last sentence might have

I think that Sterling may have signs of dementia (or he could be just a cranky old rich guy). He definitely didn't appear to have full control of himself in the Anderson Cooper interview. Cooper did not push Sterling on the housing discrimination issue. It may be that Cooper thought Sterling was already discredited and didn't feel the need to embarrass Sterling any further.

That last sentence might have

Verified Atheist — Tue, 13 May 2014 13:16:59 +0000

In reply to Donald Sterling appeared on

That last sentence might have been snark, but it actually might help. I remember feeling a little guilty about the things I said about Reagan after finding out he was developing Alzheimer's…

Donald Sterling appeared on

rmrd0000 — Tue, 13 May 2014 12:28:17 +0000

In reply to Donald Sterling, the NBA, and the Free Rider Problem

Donald Sterling appeared on "Anderson 360" to offer an apology. Instead of an apology, he slammed Magic Johnson and said that Black people do nothing to help Blacks in need. In truth, the Magic Johnson Foundation has focused on education about HIV/AIDS and as a businessman, Johnson brought businesses into under served communities.

Sterling needs an adviser with enough clout to tell him to keep his mouth shut. The best thing Sterling can do at this point is undergo testing for dementia.

From some things I have been

EmmaZahn — Mon, 12 May 2014 18:28:45 +0000

In reply to Donald Sterling, the NBA, and the Free Rider Problem

From some things I have been reading the NBA owners may well be more incentivized to just stall and wait for the furor to blow over even if their brand is a little tarnished.

If a consortium interested in acquiring the Clippers set Tokowitz up then leaked the story to force a sale, other NBA owners have to wonder whether or not the same thing might happen to them. It would not have to involve racism, any knee jerk politically correct issue could work too.

What consortium? The one Forbes thinks most likely to end up the buyers in a forced sale: Magic Johnson and Guggenheim Partners with the encouragement and support of Time Warner Cable.

I'm also not so sure that

Michael Maiello — Mon, 12 May 2014 17:25:27 +0000

In reply to Yes. And I would be very

I'm also not so sure that your behavior has to be "public" to get you kicked out of a group business. I mean, you can be excluded from owning a franchise, or from owning shares of a co-op, just because people find you unpleasant and they might make that judgment based entirely on circumstances that might be considered private.

Yes. And I would be very

Doctor Cleveland — Mon, 12 May 2014 16:01:37 +0000

In reply to If you buy a Burger King or a

Yes. And I would be very happy to see Stiviano punished, in civil and maybe even criminal court ( if the release turns out to be part of extortion or blackmail).

But although these comments should not have been made public, the other 29 owners have to deal with the fact that they are public. It's their businesses that stand to be hurt. The players are still in rebellion. Sterling is still radioactive.

And, as Elusive Trope points out, we're talking about an entertainment business. Publicity and public perception is the whole ball game.

If you're an actor, a director, an athlete, and some screwed-up things you said in private get out to the public, your career takes a hit. And other people become shy of associating with you.

And while I don't condone Stiviano or TMZ, you can't say Sterling was discreet here. Stiviano is not someone to confide in. (Both because she's clearly some form of paid girlfriend, and because she's clearly an indiscreet publicity-monger.) Confiding your poisonous racist beliefs in your publicity-hound sugar baby and then deliberately antagonizing her by using her for millions of dollars .... It's just crazy.

I think you have to add into

Elusive Trope — Mon, 12 May 2014 14:00:44 +0000

In reply to If you buy a Burger King or a

I think you have to add into the equation the comments he allegedly made about renting to blacks and Hispanics. So the invasion of privacy issue has been largely ignored I think because it became further evidence of his racism rather than a single act of racism.

Moreover, with the way we as a society invade the lives of celebrities, and the general acceptance that once you enter show business, which sports like the NBA are, you sign a kind of contract with society that says "you lose your privacy rights that the average Joe enjoys." In other words, if you want to not have your private calls taped and broadcasted over the airwaves and youtube, then don't go buying a NBA team, because your private calls are no longer private.

If you buy a Burger King or a

CVille Dem — Mon, 12 May 2014 12:43:17 +0000

In reply to I agree that old white

If you buy a Burger King or a Pizza Hut, there are circumstances under which Burger King or Pizza Hut can force you to sell. If you decide to say politically toxic things that endanger the reputation of your business ("Wednesday is Jihadi Night! Get a free topping if you say 'Death to Israel!'") then you'd better believe that they will find a way to make you sell.

The difference here being that Sterling ddidn't do anything like that. He made comments on his personal phone.

Right. In some ways, the

Doctor Cleveland — Sat, 10 May 2014 00:45:09 +0000

In reply to One thing about the Clippers

Right. In some ways, the amount of attention the scandal has brought, and the team's presence in LA, may have attracted a number of high-profile bidders and artificially driven up the price. One valuation I've seen prices the team at $575 million.

But Sterling bought the Clippers for $12 million, which, adjusted for inflation, is $33.something million. So even if the team sells for "only" $660-$680 million, which is a little inflated but much less than a billion, Sterling's asset will have increased its value twentyfold. And all that growth derives from the growth of the rest of the league between 1981 and today.

One thing about the Clippers

Michael Maiello — Fri, 09 May 2014 23:23:54 +0000

In reply to I agree that old white

One thing about the Clippers situation is I keep seeing a $1 billion tag on this sale, for a team that a former colleague at Forbes who I trust values at half that. Those numbers are fuzzy, of course, but the point is that even in a "forced" sale, he is going to get a good deal.

Generally you never wanted to be a "forced seller." It means you don't get the price you want, you get the offer. If you sell stock on margin, or sell your home to avoid bankruptcy or get kicked out of the Pizza Hut franchise system, the buyer usually gets a bargain.

Sterling seems to be avoiding that.