Business Take: Does the NBA's Donald Sterling Ban Set a Bad Business Precedent?

Be a not-so-secret racist and the NBA's owners and leadership looks the other way. Have your mistress release tapes of your racist remarks and get a lifetime ban.

In the first episode of Business Take, the show that gives you the Foolish perspective on the most important business stories of the week, host Jason Hellmann and Fool contributor Daniel Kline discuss the fallout of NBA Commissioner Adam Silver's decision to not only fine Los Angeles Clippers Owner Donald Sterling $2.5 million for his racist rant, but to ban him for life, and begin the process of removing him as an owner.

The two discuss not only the impact of the move on the NBA and its sponsors, but also the business implications of penalizing someone for expressing views that are repugnant but not illegal.  

Kline spoke about how Sterling has made no effort to distance himself from his comments or claim they are being somehow misinterpreted, and whether the NBA can actually strip him of the team. If Sterling decides to use every legal option to hold onto the team, would business concerns ultimately force him to sell? Between sponsors dropping out and fans not buying tickets or watching games on TV, the pressure on Sterling's wallet will be enormous.

Even the NBA's national television partners; which include Walt Disney's  (NYSE: DIS  ) ABC and ESPN and Time Warner  (NYSE: TWX  ) , which have been quiet so far, are likely to distance themselves from the racist owner.

No matter what the NBA does and how quickly it moves, the future of the franchise is likely not with Sterling even if he chooses to fight. Because as Hellmann and Kline discussed, that won't make sense.

Now it's your turn to weigh in using the comments box below. Do you have any concerns that the NBA is creating a bad precedent? Could doing the right thing for the right reasons ever be wrong?

Are you ready to profit from this $14.4 trillion revolution?
Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure-play" and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2941831, ~/Articles/ArticleHandler.aspx, 7/25/2014 9:06:14 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement