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SBD/June 12, 2014/Franchises
Trial To Decide If Donald Sterling Was Properly Removed From Family Trust
Published June 12, 2014
AVOIDING A SHOWDOWN: In L.A., Rainey & Fenno note Rochelle Sterling has "said through her advisors that she wanted to avoid a showdown with her husband unless it became absolutely necessary." Her petition "suggested that moment came when Donald Sterling continued to block the sale of the team." She indicated that the league seizing the team and selling it at auction could result in a "substantially lower sales price and force the Sterling trust to pay the NBA's costs in completing the transaction, which could be substantial." Rainey & Fenno note the sale agreement would "leave Ballmer in complete control of the team," but Rochelle Sterling's petition "provided new details about an arrangement that would allow her to maintain a presence with the team" (L.A. TIMES, 6/12). In N.Y., Gilbert & Cacciola note if the court "rules in favor of Sterling, the NBA would likely revert to its original plan of holding a hearing to terminate his ownership." The league would "need a three-fourths majority of the league’s 30 team owners" (N.Y. TIMES, 6/12).
ANOTHER SUIT FILED: In L.A., Javier Panzar reports former Clippers intern Frank Cooper has "filed a federal lawsuit against the Sterling Family Trust, claiming the team violated labor laws by not paying interns." Cooper alleges that he "regularly logged 40- to 50-hour work weeks as an unpaid fan relations intern for two months in fall 2012 and frequently performed the same tasks as paid employees." Maurice Pianko, Cooper’s attorney, said that he has been "speaking to other former Clippers interns and expects several others to join the suit" (L.A. TIMES, 6/12).