Los Angeles Clippers

File Under: "You Know You're Rich When" ... YOU CAN MAKE A $2 BILLION CASH OFFER TO BUY AN NBA TEAM ... like Steve Ballmer just did with the Clippers.

Donald Sterling has Alzheimer's and that's why doctors declared he is incompetent to have a voice in the sale of the L.A. Clippers ... TMZ Sports has learned.

Sources connected with the Sterling family tell TMZ ... the trust agreement that governs the family's ownership of the team provides if 2 qualified doctors determine either Donald or Shelly shows "an inability to conduct business affairs in a reasonable and normal manner" ... they will then be stripped of control over the team.

We're told earlier this month Donald agreed to an examination by 2 prominent neurologists. He underwent extensive tests, including a CT and PET scan. We're told both doctors diagnosed Donald with Alzheimer's and concluded he may have had the disease for as long as 5 years. The doctors both concluded he did not have the ability to conduct the business of the team.

Under the trust agreement ... the doctors' conclusions were enough to strip Donald of control.

Our sources say Donald can appeal the doctors' conclusions to the California Probate Court.

One interesting thing ... TMZ Sports broke the story ... on May 22 Donald signed a letter written to NBA Commissioner Adam Silver relinquishing control of the team to his wife Shelly. It's unclear if Donald's lawyer will now argue the letter is invalid because of Donald's mental incapacity.

Shelly Sterling has sold the L.A. Clippers to former Microsoft CEO Steve Ballmer for a whopping $2 billion.

As TMZ Sports reported ... the deal was signed just before midnight Thursday. The NBA must approve the sale, but our sources say NBA commissioner Adam Silver has been well aware of Shelly's negotiations with Ballmer and other potential buyers and will support it.

Donald Sterling has made rumblings he may challenge the sale, but he will almost certainly fail.

TMZ Sports broke the story ... Donald gave Shelly sole control over the team -- allowing her to sell it -- and even sent a letter to Silver affirming that Shelly had the reins.

As for Ballmer ... he vowed Thursday night to keep the team in Los Angeles. Ballmer is entrenched in Seattle -- which currently has no NBA team -- and even made a bid to buy the Sacramento Kings and move the team to the Emerald City.

Shelly Sterling will sign a deal Thursday night to sell the L.A. Clippers to former Microsoft CEO Steve Ballmer ... for $2 billion ... sources familiar with the negotiations tell TMZ Sports.

Contrary to various reports ... the deal has not be signed, but in the last 2 hours Ballmer and Shelly have made "an agreement in principle."

We're told lawyers for both sides are currently hammering out details, and they expect the parties will sign on the dotted line before midnight Pacific Time

A new report by the L.A. Times that the L.A. Clippers have been sold to ex-Microsoft CEO Steve Ballmer for $2 billion is not true ... TMZ Sports has learned.

Sources familiar with the negotiations tell us ... Shelly Sterling is in a meeting now -- at the time of this post -- negotiating with Ballmer and several other prospective buyers who have made offers.

We're told Shelly is currently reviewing documents, but no agreement has been struck with anyone.

Our sources say, however, a deal will be finalized by end of business Friday ... and Ballmer is definitely in the running.

NBA Commissioner Adam Silver tells us ... making the decision to ban Donald Sterling from the league for life was "very difficult" ... but it's business -- and it had to be done.

Silver was out in NYC yesterday when he began talking to TMZ Sports -- which he says has consistently shocked him.

Donald Sterling may now be saying he disavows anything Shelly Sterling is doing to sell the Clippers ... but TMZ Sports has obtained a letter personally signed by Donald giving Shelly control ... and he sent the letter to NBA Commissioner Adam Silver.

In the letter -- obtained by TMZ Sports -- dated May 22, 2014, Sterling's lawyer writes:

"As you know, I have been a long-time attorney for Donald T. Sterling. Mr. Sterling agrees to the sale of his interest in the Los Angeles Clippers."

The letter goes on: "This letter confirms that Donald T. Sterling authorizes Rochelle Sterling to negotiate with the National Basketball Association regarding all issues in connection with a sale of the Los Angeles Clippers team, owned by LAC Basketball Club, Inc."

Below the lawyers signature is Donald Sterling's John Hancock, saying "read and approved."

So ... Sterling's lawyer may now says he's unaware of any deal his client made with Shelly, but Donald did the deed on paper and it was signed, sealed and delivered.

As for Donald, he went to Mastro's Steakhouse in Beverly Hills last night -- but when asked about the sale of the team, his lips were sealed.

Shelly Sterling will accept offers this week to buy the Los Angeles Clippers ... and a frontrunner is a group led by former Microsoft CEO Steve Ballmer ... TMZ Sports has learned.

We broke the story ... Shelly met with Ballmer Sunday at her Malibu home, and our sources say his group made "a very competitive offer."

Sources tell us .. Shelly and her lawyer Pierce O'Donnell have put the word out ... they'd like to make a deal THIS WEEK. We're also told NBA Commissioner Adam Silver is aware of what she's doing. O'Donnell would not comment but we're told Shelly and Silver have an open line of communication.

We're told there are several other potential buyers in which Shelly is interested, including:

-- Grant Hill Group (Hill is a former NBA star who teamed up with investment partners)
-- Magic Johnson and the Guggenheim Partners (a financial company based in Chicago)
-- Patrick Soon-Shiong (surgeon turned multi-billionaire businessman)
-- David Geffen and Larry Ellison

Our sources say Oprah Winfrey is no longer in the running.

Shelly Sterling will meet with former Microsoft CEO Steve Ballmer Sunday afternoon ... and the subject of the meeting is selling the Clippers ... TMZ Sports has learned.

The meeting will take place at Shelly's Malibu mansion. TMZ Sports broke the story ... Donald Sterling has surrendered control of the team to Shelly.

We're told Shelly sees the handwriting on the wall -- the NBA wants the team sold -- but she wants to do it on her terms. She and her lawyer, Pierce O'Donnell, have been secretly meeting with NBA Commissioner Adam Silver to see if they can reach an agreement whereby Shelly has the right to voluntarily sell the team.

Shelly is taking matters into her own hands. Ballmer -- worth an estimated $20 billion -- has indicated he wants to buy the team. We're told O'Donnell will be present at the meeting.

Donald Sterling is no longer the controlling owner of the Los Angeles Clippers ... TMZ Sports has learned he just surrendered control to his estranged wife, Shelly Sterling, and she is now secretly negotiating with the NBA to sell the team ... ON HER TERMS.

Sources close to the Clippers organization tell us ... Donald made the decision because he saw the handwriting on the wall -- as long as he remained in control, the NBA would order an involuntary sale of the team.

Our sources say Shelly and her lawyer, Pierce O'Donnell, have been secretly meeting with NBA Commissioner Adam Silver and NBA lawyers to "resolve the dispute amicably." We're told Shelly realizes the NBA wants the team sold, but she has significantly more leverage and credibility with the league than Donald. Her end game is simple -- she won't object to the sale, but SHE wants to call the shots.

Donald Sterling has finally found a lawyer who will take his case ... and has fired off a letter to the NBA refusing to pay the $2.5 million fine and threatening to sue ... this according to a new report.

Sterling has hired prominent antitrust litigator Maxwell Blecher, reports SI.com, who has already sent the NBA a letter saying Sterling has done nothing wrong and that "no punishment is warranted."

The report says the letter goes on to say that Sterling will not pay the $2.5 million fine the league levied on him, which is already past due.

Sterling's lawyer, the report claims, says the embattled Los Angeles Clippers owner has not violated any article of the NBA constitution and argues that Sterling's "due process rights" have been violated by the NBA.

It was a little chilly at Staples Center last night ... just ask Rihanna.

While the Oklahoma City Thunder/Los Angeles Clippers game was the main attraction, the real show was going on in the stands ... where a braless RiRi strutted around throughout the game.

With her pink hair and a tight white tank top, she made the night more memorable than Blake Griffin and Chris Paul did.

Magic Johnson would NEVER, EVER steal the Clippers ... hell no ... because if he WAS gonna steal a franchise, Magic tells us he'd go after the Lakers instead!!!

Magic just called into "TMZ Live" -- and shot down Donald Sterling's allegations that Magic concocted a diabolical scheme to take over the L.A. Clippers after the racist audio surfaced.

"If I'm gonna set somebody up," Magic said ... "It won't be to buy the Clippers, that's for sure. It'll be to buy the Lakers!"

Of course, Magic says he's not a crook or a thief and would NEVER do anything underhanded like steal a team ... but IF he did, he'd aim WAY higher than the Red and Blue.

Magic Johnson did NOT call Donald Sterling to lull him into silence after TMZ Sports released the audio ... it was Donald who called Magic ... trying to use him as a prop for a Barbara Walters interview ... sources connected with Magic tell TMZ.

Our sources -- who know exactly what went down -- tell us ... Donald called Magic the Monday after TMZ Sports posted the audio and said he wanted Magic to sit with him for the Walters interview as a show of support. We're told Magic scoffed at Donald and ended the call.

As for Sterling's claim Magic somehow knew Stiviano and this may all have been a plot, our sources say that's a flat out lie ... Magic did NOT know Stiviano from Adam. We're told Magic in NO WAY was scheming to buy the Clippers.

Donald Sterling says Magic Johnson is a bad example for the children of L.A. because of what he did to "get A.I.D.S." back in the '90s ... and says he should be ashamed of himself.

Sterling made the comments to Anderson Cooper during his big CNN interview ... saying "To do what [Magic] did and then get A.I.D.S. ... I mean, come on."

For the record, Magic does not have A.I.D.S. -- but was diagnosed H.I.V. positive back in 1991.

Sterling continued his attack on Magic -- saying, "Big Magic Johnson ... what has he done? He's got A.I.D.S."

"What kind of a guy goes to every city and has sex with every girl? Then he catches H.I.V. ... is that someone we wanna respect and tell our kids about? I think he should be ashamed of himself. I think he should go into the background."

Sterling also said he believes Magic tricked him into staying quiet in the days after TMZ Sports published the original audio recording as part of a diabolical plot to take over the Clippers.

Sterling also just called Anderson Cooper a RACIST -- saying, "I think you have more of a plantation mentality than I do ... and I think you're more of a racist than I am."

Sterling didn't explain why he believes Cooper is a racist.

Sterling seems to be in denial about how the players feel about him -- saying they still "love me." He says the media hates him.

V. Stiviano rolled into Beverly Hills Monday afternoon right before rolling the Ferrari Donald Sterling gave her into another car ... TMZ has learned.

Stiviano was driving her red whip behind a black Range Rover when we're told she failed to stop and caused a rear ender. The other driver tells TMZ ... she was wearing her visor at the time of the crash.

We're told V. went insane ... jumping out of the Ferrari and "screaming every obscenity in the book," including, "You know who you're messing with, mother f*****?"

Stiviano told the other driver she had to return the Ferrari ... though she was not specific. As you know by now, the car is one of several vehicles she got courtesy of Donald Sterling.

We're told Stiviano wouldn't ante up her insurance info and had "an assistant" deal with it.