Donald Sterling’s refusal to sell the Clippers for $2 billion dollars could destabilize the Los Angeles real estate market. While the two don’t seem corollary, chief financial officer of Sterling’s properties said Monday to the Associated Press that Steriling owes $500 million in loans. If he doesn’t sell the team, then he will have to sell parts of his other asset — his real estate empire. The sale and risk required to move $5oo million in real estate could be disastrous.
And Sterling can’t take his company public, due to his poor reputation after being banned from the NBA for life after making racist statements.
“There’s huge reputation issues. I don’t know if anyone would want to go into partnership with him,” Darren Schield responded to questions about Sterling’s company going public. Darren Schield oversees the finances of The Sterling Family Trust.
Sterling dissolved his trust and thus three banks are recalling their loans upon the former NBA owner. If Sterling continues to refuse to sell the team for $2 billion, Schield explain that he does not have the $500 million to pay the loans.
“We would have to start selling real estate,” Schield said. “If we have to sell $500 million in apartment buildings, it would have an impact on the Los Angeles real estate market. “
If the sale of the team doesn’t go through by September 15, then the NBA can seize the team and sell it in an auction, according to Adam Streisand, who represents former CEO of Microsoft and potential buyer of the Clippers Steve Ballmer.