He may not even be allowed to set foot in the Staples Center parking lot on game nights, but Donald Sterling is motivated by a much higher force: spite. Strong, powerful spite. Strong enough to contemptuously dismiss an offer nearly four times as high as any received by an NBA team in history. Strong enough to cling to the Clippers despite being banned from the league for the rest of his declining years. And strong enough to force his family trust into default and a probable fire-sale of real estate just to deny Shelly Sterling the satisfaction of making him $1 billion richer.

The family trust that owns the Los Angeles Clippers is in danger of defaulting on hundreds of millions of dollars in loans if a planned sale of the team doesn’t go through, an executive testified Monday in a case over whether co-owner Donald Sterling can halt the sale….

The testimony came on the sixth day of a probate trial to determine whether Ms. Sterling acted within the terms of the family trust when she removed Mr. Sterling as co-trustee in late May, after doctors she hired determined that he exhibited early symptoms of Alzheimer’s disease.

And if she didn’t? Well, then, certain “reputational issues” might come into play that could put a real squeeze on the family real-estate empire, according to the guy who runs said real-estate empire. Donald Sterling is unconcerned.

Bobby Samini, an attorney for Mr. Sterling, said he was sure “any real estate investor in town would be willing to line up and buy any of those buildings.” He said he thought they would sell above-market prices because there is a “pretty limited amount of real estate in L.A.”

Sterling Trust Could Face Default on Loans if Clippers Aren’t Sold, CFO Says [WSJ]

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  1. Posted by Pepper | July 22, 2014 at 1:42 PM

    Fudgie the Whale?