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Experts: NBA likely to win in Sterling legal fight

By WTOP Staff

CURT ANDERSON
AP Legal Affairs Writer

A cadre of attorneys and a flurry of lawsuits could certainly slow down the NBA’s plan to force Donald Sterling to sell the Los Angeles Clippers over his recent racist comments, but legal experts say the league would likely prevail in the end.

And that goes for Sterling’s wife, Shelly, who has said she’d like to keep her stake in the team even if her husband is ousted.

The NBA’s constitution, which Donald Sterling signed as controlling owner of the Clippers, gives its board of governors broad latitude in league decisions including who owns the teams. NBA Commissioner Adam Silver is pushing for a swift vote against Sterling, which requires a minimum of three-fourths of the other 29 controlling owners to agree.

Silver also has imposed a lifetime ban on Sterling and a $2.5 million fine. The ban does not apply to Shelly Sterling.

SI.com and ESPN.com, citing unidentified sources, reported Thursday that Sterling’s lawyer, antitrust litigator Maxwell Blecher, wrote a letter to Rick Buchanan, the NBA’s executive vice president and general counsel, threatening to sue the league and saying Sterling will not pay the $2.5 million fine.

“Sterling’s own signature will come back to haunt him,” said Michael McCann, founding director of the Sports and Entertainment Law Institute at the University of New Hampshire. “You agree to certain basic understandings. That’s what makes a sports league different from other businesses.”

The key to the NBA’s authority, attorneys say, is Article 13(d) of the league’s constitution. That section says that, whether Sterling intended to or not, an owner cannot “fail or refuse to fulfill” contractual obligations to the NBA “in such a way to affect the Association or its members adversely.”

There’s plenty of evidence Sterling’s comments, revealed in a recorded conversation with a female companion, affected the league adversely. They provoked threats of a player boycott, led sponsors to withdraw support and created a racially charged image problem in the midst of the NBA playoffs that even President Barack Obama remarked upon.

If Article 13(d) was violated, the legal experts say the board of governors has solid grounds to force Sterling to sell the team along with any other owners, in this case his wife.

As long as the NBA meticulously follows its own constitution and rules regarding the Clippers sale, it will be difficult for Sterling to find a legal theory that would stand up in court, said Daniel Lazaroff, director of the Sports Law Institute at Loyola Law School in Los Angeles.

“This is not an antitrust issue. This is not a First Amendment issue,” Lazaroff said. “It’s a question limited to the interpretation of the NBA constitution and bylaws, and whether those terms are met.”

Another question involves California family law. It’s a community property state, meaning spouses jointly own property they acquired while married. The Sterlings were already married when he bought the Clippers in 1981.

Although a potential divorce could complicate the Clippers’ sale, McCann said the couple’s joint ownership actually works to the NBA’s favor because — legally speaking — they are a single entity. So if the NBA forced Donald Sterling to sell, even under a divorce scenario, Shelly Sterling would have to sell, too. They have been married since 1955.

“The NBA is well positioned to ultimately prevail,” McCann said.

For his part, Donald Sterling has repeatedly said he does not want to sell the Clippers. In his recent interview with CNN’s Anderson Cooper, he cast doubt on going to court if the NBA governors ultimately do vote to force him out.

“People want me to hire a wall of lawyers and them to have to hire a wall of lawyers and go to war,” Sterling said on CNN. “I don’t think that’s the answer.”

Sterling’s longtime attorney, Robert Platt, declined to comment when contacted Wednesday.

Shelly Sterling’s attorney, Pierce O’Donnell, did not respond to email requests for comment from The Associated Press. But he has previously said she wants to remain a passive owner of the Clippers even if her husband is no longer involved.

For now, the NBA has installed former Time Warner and Citigroup chairman Dick Parsons to oversee the team’s business operations. Parsons said this week that a prolonged legal battle “is in no one’s interest.”

“I would hope we could avoid that,” he said.

If he is forced out, Sterling still stands to reap a huge financial windfall in a Clippers sale. He bought the team for $12.5 million in 1981, and Forbes magazine recently placed its 2014 value at $575 million, or No. 13 in the NBA. Of course, there would also be a sizable capital gains tax bill for that.

The Clippers’ postseason run ended Thursday night when they lost 104-98 to Kevin Durant and the Oklahoma City in Game 6 of the Western Conference semifinals.

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Follow Curt Anderson on Twitter: http://twitter.com/Miamicurt

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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