LOS ANGELES – Shelly Sterling reached an agreement Thursday night to sell the Los Angeles Clippers to former Microsoft CEO Steve Ballmer for $2 billion, according to an individual with knowledge of the negotiations.
The individual, who wasn’t authorized to speak publicly, told The Associated Press that Ballmer and the Sterling Family Trust now have a binding agreement. The deal now must be presented to the NBA.
Shelly Sterling negotiated the sale after her husband, Donald Sterling, made racist remarks that were made public. Donald Sterling must also approve the final agreement as a 50 percent owner.
Ballmer beat out bids by Guggenheim Partners and a group including former NBA All-Star Grant Hill.
It’s unclear if the deal will go through. The individual said that though Donald Sterling was not involved in the negotiations, at the end of the day, he has to sign off on the final process. They’re not going to sell his 50 percent without him agreeing to it.
Donald Sterling’s attorney says that won’t happen. Sterling is not selling the team, said his attorney, Bobby Samini. That’s his position. He’s not going to sell.
That’s despite a May 22 letter obtained by The Associated Press and written by another one of Sterling’s attorneys that says that Donald T. Sterling authorizes Rochelle Sterling to negotiate with the National Basketball Association regarding all issues in connection with a sale of the Los Angeles Clippers team. It includes the line read and approved and Donald Sterling’s signature.
Samini said Sterling has had a change of heart primarily because of the conduct of the NBA. He said NBA Commissioner Adam Silver’s decision to ban Sterling for life and fine him $2.5 million, as well as try to oust him as an owner, was him acting as judge, jury and executioner.
They’re telling me he should stand back and let them take his team because his opinion on that particular day was not good, was not popular? Samini said. That his team should be stripped from him? It doesn’t make sense. He’s going to fight.
It’s unclear how the agreement will affect a special hearing of NBA owners planned for Tuesday in New York to consider the charge against Donald Sterling for damaging the league with his comments. A three-quarters vote of the 30 owners to support the charge would have resulted in the termination of both Sterlings’ ownership of the franchise.
The deal with Ballmer will go to the NBA for the league’s approval sometime before Tuesday, the individual said, ostensibly rendering Tuesday’s hearing moot.
Silver has said his preference would be for the franchise to be sold rather than seized – and that means sold in its entirety, with neither Sterling retaining a stake. Though according to the deal’s terms Ballmer will own 100 percent of the team, Shelly Sterling may continue to be involved under conditions worked out with Ballmer, the individual said.
Donald Sterling purchased the Clippers in 1981 for a little more than $12 million.