Racism, Donald Sterling and a Zero Sum Game

It's been a bad week for race relations in the NBA. With the country focussed on a recording of LA Clipper owner Donald Sterling, the NBA Commissioner, Adam Silver, came down hard on the owner meting out a $2.5 million fine along with a ban for life for Donald Sterling.

Much has been said about this iconic, yet racist, tactless, and repugnant owner. Sterling, in fact, is the longest tenured owner within the NBA. Sports writer Bomani Jones eloquently went on the record asking why the NBA hadn't looked into his past racist behavior prior to this recording? He had been continuously fingered for racist behavior, business practices, and speech. Why only now should the NBA act? Jones is right in his thoughts and words.

The additional idea put forth at the news conference was that the Board Of Governors of the NBA, which is comprised of the 30 team owners, is that Sterling be forced to sell his team under the authority of the Board of Governors. This is where the sentiment of "doing the right thing" in terms of rebuilding race relations and interfering with business and property start to cross lines and make issues quite messy. Owner of the Dallas Maverick's Mark Cuban has put it that interfering with such business by the NBA is the beginning of "a very slippery slope." And he might be right.

Granted that in this day and age of phones, Twitter and Facebook, the world can literally hang on any syllable of any given individual, we are left wondering how we as a society can make better our environment as a business person or, even as a citizen of this world, with so many obstacles. Once an association we are a part of comes down against us and forces us to part with property that is our business, where do we draw the line? A home owner's association putting a lien on a home for example if not adhering to code comes to mind. Does the association force a sale? Does the National Basketball Association force an involuntary sale of one of the most profitable franchises now?

We as a society want to punish those who hurt race relations or the advancement of our country at its core. But in so doing, we might be hurting others that we do not realize. For within California's tax code 1033, there is a provision that says if property is taken away by force (eminent domain and involuntary conversion, for example) there are no taxes payable. As Nick Lum of the Daily Beast writes, the NBA forcing Sterling to sell will create a $200 million shortfall in tax revenue to the US Treasury and $123 in tax revenues for California - a state that sorely needs it. Basically, if the NBA forces a sale of the LA Clippers, they could be saving Sterling $323 million.

Life seems to be a zero sum game and it's no different in sports or business. The question that is out there is where do we, as a society, draw the line between condemnation and punishment. It will forever be a question without a black and white answer.