Donald & Shelly Sterling — Clippers Racism Scandal
A racist rant cost him the Clippers — but his wife sold the team for $2 billion before the divorce papers even dried.
Key Facts
What Happened
Donald Sterling, the billionaire real estate developer and longtime owner of the Los Angeles Clippers, had his private life explode into public view in April 2014 when recordings of him making racist remarks to his companion V. Stiviano were released. The NBA banned Sterling for life and fined him $2.5 million, setting in motion the forced sale of the franchise.
Shelly Sterling, his wife of over 60 years, moved swiftly. She obtained declarations from three physicians that Donald suffered from early-onset dementia and could no longer serve as co-trustee of the Sterling Family Trust, which owned the Clippers. As sole trustee, she negotiated a sale to former Microsoft CEO Steve Ballmer for a record $2 billion — a price that stunned the sports world.
Donald fought the sale in court, claiming he was mentally competent and had been ambushed. The litigation exposed decades of tension in the marriage, including Donald's serial infidelity and Shelly's quiet accumulation of legal leverage. In August 2015, Donald filed for divorce, but by March 2016 the couple announced they had 'resolved their differences' and called off the split.
The Sterling saga illustrates how family trusts, competency determinations, and marital power dynamics intersect when billions of dollars are at stake. Shelly's legal maneuvering — securing the medical declarations and closing the sale before Donald could block it — became a case study in how one spouse can use trust structures to control shared assets during a crisis.
Legal Breakdown: How community trusts become battlegrounds when one spouse is declared mentally unfit
Trust Control and Spousal Competency
Shelly Sterling used medical evaluations to have Donald removed as co-trustee, giving her sole authority to sell the Clippers. This strategy — common in estate planning disputes — can be replicated in divorce scenarios where one spouse controls shared assets through a trust.
Forced Sale Under Duress
Donald argued the sale was completed without his consent while he was incapacitated. Courts upheld Shelly's authority because the trust documents allowed a sole remaining trustee to act. The lesson: trust language matters enormously when marriage stability is uncertain.
Public vs. Private Litigation
The Sterlings fought to keep their marital disputes private, but the NBA ban and subsequent sale forced everything into public view. High-net-worth divorces often involve a parallel battle over sealing records, which can affect leverage in negotiations.
What This Means for Your Divorce
- →Family trusts can give one spouse decisive control if the other is declared incapacitated — review your trust documents carefully.
- →A public scandal can accelerate asset liquidation in ways that change the entire financial landscape of a divorce.
- →Filing for divorce does not always mean following through — sometimes the threat itself is the negotiation tool.
- →When billions are held in trust, the fight is rarely about divorce law alone; it is about trust law, fiduciary duty, and competency standards.
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This article is based on publicly available court records, news reports, and legal analysis. It is provided for educational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content.
Divorce laws vary by jurisdiction. Always consult a licensed attorney in your area before making legal decisions.