This seems like quite a stretch to me. Being a racist b*stard and saying horribly offensive things during a private conversation that was (illegally?) recorded without your knowledge or consent doesn't seem to be a failure "to conduct business on a reasonable and ethical level." Wouldn't this would open every NBA owner in the future to the possibility of losing his team due to any personal moral failing?
To an extent, yes. But the personal moral failing would have to be significant enough to cause a national outcry and to want everyone to avoid you like the plague. That said, it seems pretty clear the league will likely vote to kick him out, maybe unanimously. The question is whether he can file suit to block it.
Not sure how I feel about this. On one hand, DS is a racist so I don't have any sympathy for. On the other hand, I'm not sure what the NBA is doing is 'right', regardless of popular opinion. A popular opinion doesn't make it a right opinion. On principle, two wrongs don't make a right, and I don't know if I agree with the NBA's unilateral power. I think DS will fight this. There is too much money at stake, literally hundreds of millions. Whoever the NBA forces the sale to will be getting the team at a bargain Whether DS has a set time limit to sell, or the NBA takes over and sells it to the first 'reasonable' offer just to get it off their hands. Someone is going to get a bargain. They might buy it for 600 or 700 million, and the VERY NEXT DAY the team will be worth 800 or even a billion. Who wouldn't take that return on investment? A ton of investors lining up I'm sure. It's not like the NBA cares to get DS maximum profit, they just want it over with. Shoot, if I was about to be out hundreds of millions, I'd fight it till the day I die.
It does seem like a stretch though it cant be argued that Sterlings conduct hasnt had a material and adverse effect on the NBA business, intended or otherwise. As to the question of whether the league is opening one's moral failings to be viewed as a new business risk, it's interesting questions, though I'd argue the NBA owners like any party in a private association/club/business/partnership in America, have always been at risk of losing their standing/position/privilege due to their moral failings; Its only that there are relatively few types/instances of "moral failings" which would spur this type of reaction from the other owners. Perhaps being a communist during the mcarthy era, a nazi today or in the past thirty years or a Jihadist supporter and in Sterlings case, a person with a history of racist behavior/allegations recorded having a racist diatribe. Thirty years to sixty years ago, Sterlings "moral failings" probably would have little impact, unfortunately for him, the culture/society has changed to where it is not only frowned upon but more importantly (to the NBA) it has a negative impact on the business.
If there are a number of bidders lining up (as supposedly is the case), then the franchise will go for market value. It's in the NBA's interests to maximize the sales price for all the other owners' future sales.
Not true. These multiple bidders all want the same thing, which is to buy it below its true market value. Once it no longer looks like a steal, prospective buyers will dry up. What happened was a 'shock' to the market and artificially lowered the teams value. And unlike normal situations, the time is on the buyers' side; that changes everything.
Unless you were referencing its 'new' market value. Which I agree with. Yet it will be far lower than what it would have been without this scandal.
It's market value will be what the various bidders' think it is worth *to them*, not under Donald Sterling. A sports franchise in a premiere glamour city comes available maybe every 10-15 years at most. Anyone who wants one doesn't have the luxury of just waiting for the next one - the value of the franchise is not going to be low-balled. It's why the mis-managed Dodgers run by a bankrupt owner sold for a ridiculous $2 billion.
BTW, this goes to my point. The bidding will be driven up, as you said, until "it's no longer a steal". That's market value.
