The Breakdown

Explaining Southern California's economy

SoCal biz news: Red Bull back with Clippers' Griffin, Mayor foresees Sterling fight

The Los Angeles mayor weighs in on the controversial  racist remarks of Los Angeles Clippers owner Donald Sterling.
The Los Angeles mayor weighs in on the controversial racist remarks of Los Angeles Clippers owner Donald Sterling. Cbsfacethenation1 (via YouTube)

Good morning! Welcome to KPCC's business blog, The Breakdown. Every weekday morning, our staff compiles a list of interesting business stories in the region. 

  • L.A. Mayor Eric Garcetti says it could be "a long, protracted fight" to get Donald Sterling to sell the Clippers (KPCC). But it's not all bad news for Sterling because if he goes through with a forced sale, he may be able to avoid paying taxes on the deal (The Daily Beast). Reporter Nick Lum says Sterling could save $323 million in federal and state taxes.
  • SoCal charities: Should they continue to use Sterling's donations? A Place Called Home, a tutoring and college prep center, plans to stop cashing Sterling's checks (KPCC). The center's executive director, Jonathan Zeichner, told KPCC: "It just would not represent who we are to take those funds."
  • Red Bull says it will continue partnership with Clippers player Blake Griffin (CNN). Red Bull had suspended its sponsorship with the Clippers after the Sterling controversy. From the CNN story: "Red Bull said the Clippers would donate 50% of Red Bull's payments to 'charitable initiatives' and funnel all profits 'exclusively into basketball operations,' rather than to Sterling."
  • Gov. Jerry Brown doesn't think there was much the state could do to change Toyota's decision to move 3,000 Torrance jobs and its headquarters to Texas (Associated Press). "Change is inevitable," Brown told AP and other reporters. Read my earlier coverage on Toyota's decision here.
  • Beverly Hills city council will discuss a motion to push the government of Brunei to divest itself of the Beverly Hills Hotel" in response to the government's plans to implement a law that would stone people who engage in homosexuality (LA Weekly).
  • Google and Amazon offer same-day delivery service for L.A. area shoppers (Los Angeles Times).
  • Two state legislature bills are asking for stronger insurance rules for ride-sharing companies like Uber (Los Angeles Times). Part of the issue is that personal car insurance doesn't cover drivers when they are using their vehicles for commercial purposes (KPCC). 
  • There are bonuses for Uber drivers. Uber tries to snap up drivers from its competitors, by giving drivers a $500 bonus if they can recruit a driver from Lyft and Sidecar to Uber (San Francisco Chronicle).

Got business news? Tweet me @thewendylee or my colleagues Brian Watt (@radiobwatt) or Ben Bergman (@thebenbergman).

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