LA Clippers Sale to Former Microsoft CEO Steve Ballmer Awaits Approval

NBA Board of Governors must approve $2 billion deal.
4:06 | 05/31/14

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Transcript for LA Clippers Sale to Former Microsoft CEO Steve Ballmer Awaits Approval
We're going to start with the overnight develops in the L.A. Clippers saga. Could this thing finally be winding down? The league has agreed to let shelly sterling sell the clippers for $2 billion. But Donald sterling is vowing to fight, amid swirling questions about his mental competence. Ryan smith joins us with the latest. Reporter: Good morning. The NBA has accepted shelly sterling's move to sell the clippers to Steve Ballmer and has canceled a hearing next week to oust Donald sterling from ownership. But he's not going quietly. The Los Angeles clippers, finally sold. Overnight, the NBA announcing the Los Angeles clippers will go to former Microsoft CEO and billionaire Steve Ballmer, pending one last approval by the NBA board of governors. Ahead of the record $2 billion sale, the league calling off Tuesday's vote to eject Donald sterling. According to the league, shelly sterling also agreeing not to sue the NBA and pay back the NBA for any suits filed by her estranged husband, Donald. And good thing for the NBA because Mr. Sterling's lawyer, maxwell bleacher, says he isn't done fighting. Announcing Friday, he's suing the NBA for $1 billion in damages. We have always expected to get a fight from every angle from Mr. Sterling. And we're getting it. Reporter: A source involved in the negotiations to sell the team confirmed to ABC news that Donald sterling was found to be mentally incapacitated, after testing by neurologists this month. Their diagnosis according to ESPN, Mr. Sterling was suffering from Alzheimer's disease, and likely had been for, quote, three to five years. Since the sterlings own the team in a trust, the rules of that trust don't require a court to declare Mr. Sterling incapacitated. And Mrs. Sterling became the sole person authorized to sell the team. That ruling, contested by another of Mr. Sterling's lawyers. Any assertion that Donald sterling lacks mental capacity, is absurd. If it's found to be invalid, that could mean that everything she's done is no longer valid. Reporter: This isn't the first time sterling's mental health has been questioned. His wife brought it up to ABC's Barbara Walters when discussing his infamous racist rant. Have you discussed these remarks at all with your husband? He saw the tape. And he said, I don't remember saying that. I don't remember ever saying those things. What did you think then? That's when I thought he had dementia. Reporter: NBA officials called Donald sterling's lawsuit quote, entirely baseless. They're taking a leave me out of it approach. The NBA rids itself of a rather large distraction. To clear it up. Donald sterling is vowing to sue the NBA. And his wife is vowing to essentially indemnify the NBA to pay the legal bills. So Donald is suing shelly? Reporter: In a way. What they're planning on is she will be able to manage him. If he wants to bring lawsuits, they have to go through that process. They have to go through court and that process. But in the end, she has to indemnify. She has the onus of making sure he doesn't attack the league. And the league says, not on us. Is the league likely to approve, give final approval to Ballmer buying the team? Reporter: He's the closest thing to a sure thing. He's a deep-pocketed owner. He has a great sense of credibility about him. That's what they want. The things that leagues don't want, is owners whose financials might not be as good. Steve Ballmer tried to buy teams before. He's in some ways preapproved. What they want to do is get this behind them. I wouldn't be surprised to see a vote coming soon. Ryan, thank you. This scandal has made this team the most valuable team in the NBA now. Reporter: Nobody would have thought this a month ago. Two months ago. Ryan, thank you.

This transcript has been automatically generated and may not be 100% accurate.

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