Q: Is it possible for Silver and the NBA to terminate Sterlings - TopicsExpress



          

Q: Is it possible for Silver and the NBA to terminate Sterlings franchise ownership? A: Yes. Under the terms of Paragraph 13 of the constitution, the owners can terminate another owners franchise with a vote of three-fourths of the NBA Board of Governors, which is composed of all 30 owners. The power to terminate is limited to things like gambling and fraud in the application for ownership, but it also includes a provision for termination when an owner fails to fulfill a contractual obligation in such a way as to affect the [NBA] or its members adversely. Silver and the owners could assert that Sterlings statements violated the constitutions requirements to conduct business on a reasonable and ethical level. Any owner or Silver can initiate the termination procedure with a written charge describing the violation. Sterling would have five days to respond to the charge with a written answer. The commissioner would then schedule a special meeting of the NBA Board of Governors within 10 days. Both sides would have a chance to present their evidence, and then the board would vote. If three-fourths of the board members vote to terminate, then Sterling would face termination of his ownership. It would require a vote of two-thirds of the board to reduce the termination to a fine. Terminating a franchise would obviously be a drastic remedy, but the potential of the termination procedure gives Silver and the other owners vast leverage in any discussion with Sterling about an involuntary sale of his team.
Posted on: Wed, 30 Apr 2014 02:29:42 +0000

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