Donald Sterling
Donald T. Sterling is an American attorney and businessman who was the owner of the San Diego/Los Angeles Clippers of the National Basketball Association from 1981 to 2014.
In April 2014, Sterling was banned from the NBA for life and fined $2.5 million by the league after private recordings of him making racist comments were made public. NBA commissioner Adam Silver, who announced Sterling's suspension, said he would "immediately" recommend to the NBA board of governors that Sterling be forced to sell the team. In May, Sterling's wife Shelly reached an agreement for the Sterling Family Trust to sell the Clippers for $2 billion to Steve Ballmer. Sterling contested the agreement in court, but the NBA Board of Governors approved the sale of the Clippers to Ballmer in August 2014. Sterling settled his lawsuit against the NBA in November 2016 and remains active in Los Angeles real estate.
Sterling's ownership of the Clippers is often criticized, and many consider him one of the worst owners in American sports history.
Early life
Donald Sterling was born Donald Tokowitz on April 26, 1934, in Chicago. His family moved to the Boyle Heights area of Los Angeles when he was two years old. His parents, Susan and Mickey, were Ashkenazi Jewish immigrants. He attended Theodore Roosevelt High School in Los Angeles, where he was on the school's gymnastics team and served as class president; he graduated in 1952. He then attended California State University, Los Angeles and Southwestern University School of Law in Los Angeles.When he was 25, he and his wife Shelly changed their surname to "Sterling", filing a formal petition to do so on December 9, 1959. They cited the difficulty among his peers to pronounce "Tokowitz" and the belief that there would be financial benefits for the change.
Legal and real estate career
In 1961, Sterling started his career as a divorce and personal injury attorney, building an independent practice. His biggest ventures were in real estate, which he began when he purchased a 26-unit apartment building in Beverly Hills.In the 1960s, Sterling also purchased Lesser Towers, a pair of large apartment buildings in the Westwood area of Los Angeles, and renamed them the Sterling Towers. In 1976, he leased the California Bank Building on Wilshire Boulevard in Beverly Hills and renamed it Sterling Plaza. The Art Deco landmark was built in 1930 by MGM cofounder Louis B. Mayer. In 2000, Sports Illustrated senior writer Franz Lidz revealed that Sterling had a 99-year lease with the Mayer estate that required him to pay a relatively small annual fee and 15% of any rental income, which was why Sterling had remained the sole tenant. "With no other tenant," Lidz reported, "the Mayer estate faces another 75 years with virtually no income from its Sterling Plaza property. By sitting and waiting, Sterling may force a fire sale." As of April 2014, he owned 162 properties in Los Angeles.
NBA ownership
Sterling and Los Angeles Lakers majority owner Jerry Buss were each indirectly responsible for the other owning his respective NBA franchise. The first instance came in 1979, when Buss used the money he made from selling a portion of his apartment buildings to Sterling, which covered the remaining balance in purchasing the Lakers, the Kings hockey team, and The Forum arena from Jack Kent Cooke for $67 million. Two years later, Buss suggested that Sterling purchase his own NBA franchise, and Sterling bought the San Diego Clippers for $12.5 million.At his introductory news conference in San Diego, Sterling vowed to "spend unlimited sums" to build the Clippers into a contender, and he embarked on a county-wide marketing campaign featuring his smiling face on billboards and the backs of buses. The seminal ads read: "My Promise: I will make you proud of the Clippers". Unlike Buss' instant success with the Lakers, Sterling and his Clippers struggled through many lackluster seasons, and they did not have their first winning season until the 1991–92 season, 11 years into his ownership. In Sterling's 33 years of owning the Clippers through 2013–14, the Clippers lost 50 or more games 22 times, 60 or more on eight occasions, and 70 games once. Their 9–41 record in the lockout-shortened 1998–99 season projected to another 60-loss season.
The NBA in 1982 fined Sterling $10,000, the largest sum ever levied against an owner at the time, after he commented that he would accept the Clippers finishing in last place in order to draft an impact player like Ralph Sampson. In June 1982, Sterling attempted to move the team to Los Angeles. This prompted an investigation of the Clippers by an NBA committee of six owners. In September, the group recommended that Sterling's ownership be terminated, having found that he was late in paying creditors and players. Days before a league scheduled vote in October to remove Sterling, he agreed to sell the team, and the league sought buyers who would keep the franchise in San Diego. At the suggestion of David Stern, then the league's vice president, Sterling was able to maintain his position as owner, instead handing over operations duties of the franchise to Alan Rothenberg, who became the team's president. By February 1983, Stern called the Clippers a "first-class" franchise, and the ouster of Sterling was no longer pursued.
Encouraged by friend Al Davis' victory over the National Football League in an antitrust lawsuit that allowed him to move his Oakland Raiders to Los Angeles without league approval, Sterling moved the Clippers from San Diego to Los Angeles in 1984, despite again being denied permission from the NBA to do so. The NBA subsequently fined him $25 million. He sued the league for $100 million, but dropped the suit when the league agreed to decrease the fine to $6 million. Sterling was widely criticized for his frugal operation of the Clippers, due in part to a consistent history of losing seasons. The club was long considered the laughingstock of the NBA. The Clippers moved into the Staples Center for the 1999–2000 NBA season, the same place in which the Lakers were becoming perpetual contenders. In the 2005–06 season, eight years removed from their last playoff appearance, they won 47 games and finished 6th in the Western Conference to make the playoffs. This was a record for the most victories in a single season since the franchise moved to California. It was the fourth playoff appearance for the Clippers with Sterling as owner and it was also only the second winning season in his tenure. They beat the Denver Nuggets in the first round for the team's first playoff series win since 1976 before losing to the Phoenix Suns in a seven-game semifinals. In the lockout-shortened 2011–2012 season they made the playoffs with the best winning percentage in their history with 40 wins in 66 games and they won their first round series against the Memphis Grizzlies, 4–3, before being swept by the San Antonio Spurs, 4–0, in the conference semi-finals. Led by Blake Griffin and Chris Paul, the Clippers posted two more winning campaigns in 2012–13 and 2013–14, setting new franchise records for regular-season wins with 56 and 57, respectively, but won just one playoff series combined.
Sterling rebuffed numerous offers from other cities to relocate the Clippers and was steadfast in his refusal to move the team out of Los Angeles, let alone sell the team. While the team played a few games in Anaheim in the Arrowhead Pond for a few years before the Staples Center opened, he was not willing to move the team there permanently. In later years, he showed an increased willingness to spend. In 2003, Sterling signed Elton Brand to a six-year, $82 million deal, the biggest contract in franchise history. He matched the contract the Utah Jazz offered restricted free agent Corey Maggette: a deal worth $45 million over six years. The Clippers signed higher-priced veteran free agents, such as Cuttino Mobley in 2005, Tim Thomas in 2006, and Los Angeles native Baron Davis in 2008. In another first during the Sterling tenure of Clippers ownership, the team gave a four-year contract extension to head coach Mike Dunleavy Sr., as well as a five-year extension to center Chris Kaman. Both extensions took effect starting in the 2007–08 NBA season.
Under Sterling's ownership, only Dunleavy and Bill Fitch lasted four seasons or more as Clippers head coach; as of the 2009–10 NBA season, Dunleavy entered his seventh season as Clippers head coach, by far the longest tenure in franchise history, but was relieved of his coaching duties on February 4, 2010. Dunleavy was also the club's general manager, but was fired from that position a month later. The Clippers accused Dunleavy of defrauding the team, and he sued the club for money owed on the remainder of his contract; an arbitrator ordered the Clippers to pay Dunleavy $13 million in 2011. The Clippers also went to court with former head coaches Fitch and Bob Weiss. Weiss, who signed a three-year contract but was fired in 1994 after one season, had to sue to receive money that was still owed him. In 2001, the Clippers sued the 63-year-old Fitch, whom the team had fired in 1998, after they stopped paying him for failing to seek employment to reduce the team's obligation for payment. The suit reached an undisclosed settlement before going to court.
Sterling spent $50 million to build a state-of-the-art practice facility and team headquarters in Los Angeles' Playa Vista mixed-use development neighborhood. This followed the lead of several other NBA franchises, including the Lakers, Sacramento Kings, Cleveland Cavaliers, and Detroit Pistons, in having their own facility dedicated exclusively for team use. The facility was completed and opened in September 2008, in time for the start of the team's training camp. The team previously practiced at a local health club in suburban El Segundo, and before that at Los Angeles Southwest College.
Sterling's ownership was viewed critically. ESPN The Magazine in 2009 named the Clippers the worst franchise in professional sports. Uncharacteristic for an owner, Sterling in 2010 heckled players on his own team—with Baron Davis receiving the harshest treatment—while the owner sat courtside during home games.
In late April 2014, following news of racial remarks, Sporting News described Sterling as "one of the worst owners in basketball for decades", while The New York Times and Forbes called him the "worst owner" in sports, and an analyst noted that under Sterling's ownership, from his purchasing the Clippers in 1981 through 2013–14, the Clippers achieved the worst winning percentage in all four major American sports leagues.