The Problem of Earning Too Much Too Fast

It is not uncommon to hear about sports stars and entertainers going broke.  Often, with the influx of large sums of money, they are clueless how to handle and preserve it wisely.  This is especially true with younger athletes.

Many athletes land multimillion dollar contracts at a young age, sometimes right out of high school.  At such a young age, these athletes have little to no financial experience.  Yet, suddenly they find themselves thrust into a situation requiring a significant amount of knowhow.  They have …

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Bill Ending Antitrust Exemptions for Pro Sports Leagues Introduced

A bill to end the current permanent antitrust exemptions of the four major professional sports leagues was introduced by Sen. Richard Blumenthal, D-Conn. on December 2.

Titled the Sustained Promotion of Responsibility in Team Sports Act (SPORTS), the bill would remove permanent antitrust exemptions for NFL, MLB, NHL, and NBA one year from the bill’s enactment and replace it with a reauthorization process every five years.  According to the SPORTS Act, ninety-five days before ending the exemption, Congress would have an up-down vote on a …

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NBA Leads in Gender Equity

On the National Basketball Association’s (NBA’s) opening night this past Tuesday, the defending champions, the San Antonio Spurs, made a historical win with the help of their new assistant coach, Becky Hammon. When Hammon was hired to the Spurs in early August, she became the first paid female assistant coach in the NBA, or any major American professional sport.

Just weeks prior to Hammon’s hiring, Michele Roberts became the first woman elected as the executive director of the NBA Players Union. This occasion also marked …

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LA Lakers Seek Punitive Damages From Insurer in Bad Faith Claim Denial

On Tuesday, September 2nd, the Los Angeles Lakers filed suit against its insurer, Federal Insurance Co., for bad faith denial of coverage for a Telephone Consumer Protection Act violation suit, that settled earlier this year.

David Emanuel brought the TCPA class-action lawsuit in 2012, claiming the Lakers were sending unwanted text message to his mobile device in violation of the Act.  The Lakers sought defense and indemnity under its Corporate Liability Coverage policy from Federal, however, the insurer denied coverage claiming the suit …

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Appeals Court Agrees Cuban Is Not Mismanaging Mavericks.

On Thursday August 21, judgment was entered in the Court of Appeals for the Fifth District of Texas affirming the trial court’s November 2011 decision that the Dallas Mavericks were not being mismanaged and did not require court-appointed receivership.

The lawsuit, filed in 2011 by previous majority owners, Hillwood Investment Properties III Ltd., claims that Mark Cuban’s ownership of the Mavericks has been “careless and reckless” resulting in a loss of substantial investment value to the now minority owners.  Hillwood is seeking court-appointed receivership due …

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Sterling to Oppose Forced Sale in Court

L.A. Clippers owner Donald Sterling released a statement on Monday titled, “The Team is not for Sale.”  In his statement, Sterling claims he will not assent to the forced sale of his team and will fight it in court.  Sterling intends to move forward with a $1 Billion lawsuit against the NBA and commissioner Adam Silver for the forced sale of the Clippers.  Sterling argues that the NBA breached their contract by fining him and that it breached antitrust law by forcing a sale of …

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Donald Sterling Throws in the Towel: the Clippers to Steve Ballmer

Donald Sterling decided to withdraw a $1 billion lawsuit against the NBA and agreed to sell the Clippers to former Microsoft CEO Steve Ballmer for $2 billion.  According to an official release, Shelly Sterling in her deal with Ballmer agreed to “indemnify the NBA against lawsuits from others, including Donald Sterling.”  On the other hand, Donald Sterling’s lawyer Max Blecher stated that the decision to withdraw came as a result of the NBA’s agreement not to sue Sterling in return.

Sterling’s $1 billion lawsuit against …

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Sterling Says the Forced Sale of Clippers is Illegal

Calling the forced sale illegal, Donald Sterling will challenge the NBA’s attempt to oust him.  He claims that the attempt is illegal because it is based on illegal recording of his racial comments “during an inflamed lovers’ quarrel.”

According to Sterling’s response to the NBA, because the conversation was recorded without his knowledge, the recording is illegal under California law.  Without the knowledge, Sterling also argues, he could not have “willfully” offended the league.

Sterling came under fire when a recording of his racist comments …

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Steve Ballmer Pays $2 Billion for Clippers

The biggest deal ever in the NBA history was announced: Steve Ballmer has signed a binding contract to sell the Clippers with Shelly Sterling for $2 billion.  While the sale is subject to an approval from the NBA, Donald Sterling’s attorneys argue that as a co-owner of the team, he must consent to the deal and he does not plan to do so.

Maxwell Blecher, one of Donald Sterling’s lawyers, had conveyed earlier that his client intends to keep the team in his family and …

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NBA Makes a Strong Statement Banning Clippers Owner Sterling For Life

NBA Commissioner Adam Silver issued severe sanctions against Los Angeles Clippers’ owner Donald Sterling, banning him from the sport for life and fining him $2.5 million for the racist remarks Sterling admitted he uttered to his girlfriend.  In a statement to the press Silver noted, “As part of the lifetime ban, Mr. Sterling may not attend any NBA games or practices, be present at any Clippers office or facility, or participate in any business or player personnel decisions involving the team.  He will also be …

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