The chief financial officer of Donald Sterling's properties spoke to the court last Monday saying that the businessman is currently under big loans as much as $500 million and may need to sell his NBA team, Los Angeles Clippers in order to pay the debts.
Darren Schield is the manager of Sterling's Family Trust as well as his finances informed the court that there are already three banks that are ready to recall the loans to Sterling because of his choice to dissolve the trust.
According to Schield's, Sterling owns about $2.5 billion in property and that "We would have to start selling our real estate. We'd have no choice."
Maxwell Blecher, Sterling's attorney suggested that they put the company on public to gain some funds but Shelly Sterling's lawyer, Pierce O'Donnell questioned if it would be easy for them to go public ''with Donald Sterling's reputation.''
Schield answered: ''There's huge reputation issues. I don't know if anyone would want to go into partnership with him.''
It can be remembered that NBA banned Sterling for life because of his racist comments when a recorded conversation was released. For the record, Sterling as denied that he is a racist.
Schield is a witness for Sterling's wife Shelly Sterling. Shelly requested the probate court to confirm her as having the rights to sell the franchise LA Clippers to former Microsoft chief executive Steve Ballmer. Schield added "I told him this revocation would open up Pandora's Box and there would be severe consequences for us."
Schield testified that if Sterling's loan goes in to default, he would have a hard time to refinance saying "''I know the bank looks at this as a higher credit risk with all this going on. The rate would go up considerably."
Schield has already talked to Sterling's lawyer, Bobby Samini, with regards to the dissolving of the trust fund saying "''I told him this revocation would open up a Pandora's box and trigger defaults"
Shelly's lawyer asked "''Does the company have $500 million to pay off the loans?" In which Schield answered "''We do not."
Donald Sterling believes that he is a victim in this case and that he promised never to sell the LA Clippers no matter what.
