On May 30, the National Basketball Association (NBA) announced it had approved former Microsoft CEO Steve Ballmer’s record-breaking $2 billion offer to buy the Los Angeles Clippers from Shelly Sterling, wife of Clippers owner Donald Sterling. In April, the NBA banned Sterling from the league for life after racist remarks he made during a phone call were made public.
Negotiations to buy the Clippers were fast and furious. Aware that the NBA Board of Governors could have voted to terminate both of the Sterlings’ ownership interests at a meeting scheduled for June 3, Shelly Sterling was eager to sell the team before that date and reportedly was authorized by her estranged husband to negotiate on his behalf. As part of the sale agreement, Shelly Sterling and her family’s trust promised not to sue the NBA and to absolve the league of litigation filed by others, including her husband. Donald Sterling, meanwhile, filed a $1 billion lawsuit against the NBA the day his wife’s deal was announced.