CFO: Sterling can't pay debt without Clippers sale

[TexasTowelie]

Source: AP

LOS ANGELES (AP) — The chief financial officer of Donald Sterling's properties says the billionaire may be forced to sell a large portion of his real estate empire to cover $500 million in loans if he persists in refusing to sell the Los Angeles Clippers for $2 billion.

Darren Schield, who oversees the finances of The Sterling Family Trust, testified Monday that three banks are ready to recall their loans to Sterling because of his decision to dissolve the trust. His move was designed to rescind agreement for the sale of the Clippers, a team he bought for $12 million.

Schield said if Sterling has to dump $500 million worth of apartment buildings he could destabilize the Los Angeles real estate market.

Sterling's lawyer suggested there are other options for raising the money.


Read more: http://lubbockonline.com/filed-online/2014-07-21/cfo-sterling-cant-pay-debt-without-clippers-sale#.U82UOLFCz2Q

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ETA: Another story with more information:

http://www.scpr.org/news/2014/07/21/45475/clippers-sale-trial-team-s-future-on-line-as-proba/

[randys1]

1. He is so fucking rich, he alone can destabilize the real estate market of LOS ANGELES

Are you ready for a Democratic Socialist state yet?

When will enough be enough for everybody?

[dballance]

4. Sounds like FUD to try to get some help to get him out of the sale.

I'm thinking his lawyer is just throwing that out there to try to get some regulatory or other government assistance to help him get out of the sale of the Clippers.

[bbernardini]

2. <obligatory "Archer" joke>

[oldandhappy]

3. 500 million in loans?

I guess I am the one living in an alternate universe!!

[hughee99]

5. Just curious, what does "destabilize the LA real estate market" mean?

Does that mean a bunch of people get a good deal on a house or apartment because some rich racist is trying to fuck around with his family trust to avoid selling a team that hates him in a league that doesn't want him for a $1.988 BILLION dollar profit?