J-Speaks: Suns' Governor Fined Heavily and Suspended After Serious Findings of Inappropriate Workplace Conduct

 

While the skies from the surface looked very clear in 2021-22 for the Phoenix Suns, there was a serious invisible cloud hanging over them within their front office. Last week, that dark cloud within their organization was revealed and has put them under a serious microscope with the only way to remove that lens is to remove the top person in charge of their organization.

Last Tuesday Suns’ Governor as well as Governor of the WNBA’s Phoenix Mercury was suspended for one year and fined $10 million by the National Basketball Association (NBA) as a result of an investigation that found during his nearly two decades as the front office leader of the Phoenix’s two pro basketball squads he used the N-word at least on five occasions. 

This investigation by the NBA into the Suns and Governor Sarver was commissioned after ESPN’s Baxter Holmes published a very detailed story on those allegations of racism and misogyny during Sarver’s tenor that began in 2004.

The investigation, which was led by Wachtell Lipton, a law firm based in New York as well as specialists from the global accounting firm Deloitte, which is headquartered in London and Kirkland & Ellis, a Chicago-based law firm uncovered that Mr. Sarver “engaged in conduct that clearly violated common workplace standards, as reflected in team and league rules and policies.”

The investigation included interviews with 320 former and current employees of the Suns as well as Mr. Sarver, the NBA announced as well as conducted an examination of more than 80,000 pieces of documentation and other materials such as E-Mails, text messages and videos.

The Suns also granted to those of the investigation access to human resources records and thousands of internal E-Mails, according to sources. 

The report was made available online for those that wanted to see the investigation fully.  

The investigation also uncovered that Sarver was engaged in several instances of “inequitable conduct towards female employees.” Made a plethora of sex-related comments in the “workplace.” Made comments that were inappropriate about the physical appearance by female employees and other women as well as on a plethora of other occasions engaged in inappropriate physical misconduct towards male employees. Made a plethora of demeaning and harsh treatment of Suns employees that included yelling and cursing at them.

In interviews with Wachtell Lipton lawyers, most of which happened in person, over the phone and via videoconference calling, Suns employees confirmed the allegations from Baxter Holmes’ published story by ESPN in November 2021 and introduced others as well as provided documentation, including E-Mails.

The release of the investigation noted that there were “no finding that Mr. Sarver’s workplace misconduct was motivated by racial or gender-based animus.”

The findings also provided several instances of inappropriate conduct engaged by Suns employees not directly involving Sarver and “a lack of proper organizational policies and controls. Those findings also included “instances of racial insensitivity, mistreatment or female employees, inappropriate commentary related to sex or sexual orientation, and disrespectful communications.” It was also revealed that the Suns human resource department was “historically ineffective” and not the most trustworthy for employees to come to when they were subjected to “improper workplace conduct.”

“The statements and conduct described in the findings of the independent investigation are troubling and disappointing,” NBA Commissioner Adam Silver said in a statement about the findings from the investigation into Sarver. “We believe the outcome is the right one, taking into account all the facts, circumstances and context brought to light by the comprehensive of this 18-year period and out commitment to upholding proper standards in the NBA workplaces.”

Commissioner Silver added, “I am hopeful that the NBA community will use this opportunity to reflect on what this great game means to people everywhere and the values of equality, respect, and inclusion that it strives to represent. Regardless of position, power, or intent, we all need to recognize the corrosive and hurtful impact of racially insensitive and demeaning language and behavior. On behalf of the entire NBA, I apologize to all of those impacted by the misconduct outlined. In the investigators’ report. We must do better.”

Commissioner Silver said though in a press conference last Wednesday that the lack of “racial animus” was the reason the suspension for Sarver was not longer.

Silver said that he has “certain authority” and that is what he exercised but added, “I don’t have the right to take away his team. I don’t want to rest on that legal point because of course there could be a process to take away someone’s team in this league.”

“It’s very involved, and I ultimately made the decision that it didn’t rise to that level. But, to me, the consequences are severe here on Mr. Sarver. In terms of future behavior, there’s no question he’s [Sarver] is on notice. He knows that. And I also think though if you look at the chronology of this sort of report is that most of this activity most of the inappropriate activity goes back many years.”

“I would say the Suns workplace is a very different environment today, even at the beginning of this investigation than it was years ago.”  

To many though, the $10 million fine, which is the maximum permitted by the NBA was not enough. Those funds being donated to organizations “addressing race and gender-based issues in and outside the workplace” is not enough. On top of that, the comments made by Commissioner Silver that the Suns workplace has gotten better even during the investigation many current Suns employees say that is false.

Holmes on Thursday’s edition of ESPN’s “NBA Today” read a quote from a current Suns staffer that said, “The sad thing is, much of the discussion acts as if these were long ago historical events and that things have been cleaned up. My co-workers are so infuriated that this is the perception…The Commissioner has this very wrong.”

A former Suns employee in echoing those same feelings said to ESPN when they initially released their story in November 2021, “It’s barely a slap on the wrist and shows us the league truly doesn’t stand for that diversity, equity or inclusion.”

“I’m grateful to have the validation after being told I was insane, a b---and being dramatic. That definitely lets me breathe a little.”

“But I’m angry. The league failed us when they had the opportunity to stand behind its values.”

A current Suns employee, who also spoke to ESPN said of the NBA decision to just suspend  Sarver, “I am so f---ing mad. So are many others.”

Holmes also pointed out on Thursday that back in May a longtime female staffer resigned from the Suns citing the fear of being retaliated against after she reported “concerns about toxic and misogynistic work culture.”

This former female staffer Holmes said sent an E-Mail to members of the ownership group, including Mr. Sarver.

“I want to say people there are feeling as if this is being framed as a lot of long-ago things. And there’s a lot of angry people because of the way Adam Silver framed that,” Holmes said.

Suns perennial All-Star lead guard Chris Paul, who served two terms as the President of the National Basketball Players Association (NBPA) me Kia MVP and four-time NBA champion LeBron James of the Los Angeles Lakers also tweeted their harsh feelings towards Sarver’s punishment.

“Like many others, I reviewed the report. I was and am horrified and disappointed by what I read,” Paul tweeted @CP3 on evening of Sept. 14. “This conduct especially towards women is unacceptable and must never be repeated.”

“I am of the view that the sanctions fell short in truly addressing what we can all agree was atrocious behavior. My heart goes out to all of the people that were affected.”

James in his tweet about Sarver’s suspension after reading through the report “a few times” that the NBA “definitely got this wrong.”

He also said in his tweet @KingJames, “I don’t need to explain why. Y’all read the stories and decide for yourself. I said it before and I’m gonna say it again, there is no place in this league for that kind of behavior.”

“I love this league and I deeply respect our leadership. But this isn’t right. There is not place for misogyny, sexism, and racism in any workplace. Don’t matter if you own the team or play for the team. We hold our league up as an example of our values and this ain’t it.”  

While “The Association” had stated that Sarver “cooperated fully with the investigative process,” sources around the league told ESPN’s Baxter Holmes, who has covered this story from the start and ESPN’s Senior NBA Insider Adrian Wojnarowski that Mr. Sarver feels he did not deserve a one-year suspension and have to pay a $10 million fine for his misconduct.

“While I disagree with some of the particulars of the NBA’s report, I would like to apologize for my words and actions that offended our employees,” Sarver said via statement thought the Suns. “I take full responsibility for what I have done. I am sorry for causing this pain, and these errors in judgment are not consistent with my personal philosophy or my values.”

“I accept the consequences of the NBA’s decision. This moment is an opportunity for me to demonstrate a capacity to learn and grow as we continue to build a working culture where every employee feels comfortable and valued.” 

The Suns also released a statement that said they are “committed to creating a safe, respectful, and inclusive work environment that is free of discrimination and harassment.”

They also said in the statement that “at the direction of senior leadership,” they have “strengthened” their culture and “focused” on the creation of “a workplace where everyone feels included and valued.”  

During Sarver’s one-year suspension he cannot be present at any NBA or WNBA team event or activities, which include practices, games, or business partner activities. He cannot represent the Suns or Mercury in any public or private capacity. Have any involvement with the business or basketball operations of the Suns or Mercury. And have any involvement in the business, governance, or activities of either the NBA or WNBA, which includes attending or participating in meetings of either league’s Board (and their associated Board committees).

Sarver must also complete a training program that focuses on respect and appropriate conduct in the workplace.

On Thursday, the Suns named Sam Garvin interim Governor for the next year while Sarver serves his one-year suspension.

Holmes also said on Thursday, which was also confirmed by ESPN’s Zach Lowe Garvin has been with the Suns since Sarver led an ownership group that purchased the Suns back in 2004. This decision was effective as of last Wednesday evening and was authorized by Commissioner Silver.

Holmes also mentioned that Garvin supported Sarver in the statement that was released right after ESPN broke the story of the Suns toxic work environment led by Sarver

The Suns and Mercury organizations must also fulfill a series of requirements for workplace improvements that the were set for by the NBA, which include:

*Retaining an outside firm to evaluate and make recommendations with respect to workplace training programs, policies, and procedures, and hiring and compensation practices—with the focus on fostering a diverse, inclusive, and respectful workplace.

*Conducting regular and anonymous workplace culture surveys and responding to survey results with specific action plans.

*Immediately reporting to the league any instances or allegations of significant misconduct by any employee.

*For a period of three years, providing the league with regular reports related to steps taken by the organization to address these requirements.

*Following league direction for remediation/improvement of workplace issues if/as they arise.

Two things that will speed up the possible process of having Sarver removed as Governor of the Suns is them public pressure from fans and sponsors taking their money elsewhere.

In the later part of last Wednesday, NBPA Executive Director Tamika Tremaglio issued a statement saying of the detailed report that came out of Mr. Sarver’s misconduct for nearly two decades as Suns owner are “horrible” and they do not have “a place in our sport or any workplace for that matter.”

Tremaglio also said that she expressed her position on Sarver’s punishment and believes very “strongly” that Mr. Sarver “never” hold a position of ownership within the NBA again.

Tremaglio said to Malika Andrews during an interview on the Friday afternoon edition of ESPN’s “NBA Today” that she has had “many” conversations with NBA players over a previous 2-3 days and they each made “very clear” after reviewing the aforementioned report that Mr. Sarver’s behavior is “something we absolutely do not condone.”

When asked by Andrews if any current or former players of any team recounted to Tremaglio of being witnessed or the target of any of Mr. Sarver’s inappropriate behavior, she said that she has not had any specific engagement with any of the players in the league when it comes to that.

Tremaglio did say that the players will have “their own opinions” and certainly have “the right” make those opinions voiced from their own mouths.

The current NBPA President CJ McCollum Tremaglio said that he has allowed to speak on behalf of the NBPA in terms of what they want collectively. But LeBron James, Chris Paul and other the NBA’s major voices that have serious weight are in position to voice on the things that impact them and how they feel on this situation specifically.

When Andrews asked Tremaglio about how Commissioner Silver’s openness to her and other’s thoughts about changing the one-year suspension that Mr. Sarver received, Tremaglio said that Silver was “very willing” to hear her as well as hear thoughts of other’s players that he has conversed with about this situation.

“I don’t know how open he is in terms of actually wanting to make the change. I think it is our hope that it will be very clear that Mr. Sarver should not be in a position to be able to come back and be in a managerial position,” Tremaglio said.

“I think we’ve heard from other owners. Other sponsors, etc. and I think it’s pretty clear that there is no expectation of him returning.”    

One of the Suns’ sponsors, their jersey patch partner PayPal said on Friday that it would not renew its sponsorship with the team if Mr. Sarver does get reinstated as the team’s Governor following his one-year suspension.

In a statement regarding Mr. Sarver, PayPal CEO and President Dan Schulman said, “PayPal’s sponsorship with the Suns is set to expire at the end of the current season. In light of the findings of the NBA’s investigation, we will not renew our sponsorship should Robert Sarver remain involved with the Suns organization, after serving his suspension.”

Suns Vice  Chairman and Minority owner Jahm Najafi, the team’s largest stakeholder on Thursday also called for the resignation of Mr. Sarver saying in an open letter saying there should be “zero tolerance” for any lewd, misogynistic, and racist conduct in any workplace.

“Similar conduct by any CEO, executive director, president, teacher, coach, or any other position of leadership would warrant immediate termination,” Najafi wrote in the letter. “The fact that Robert Sarver ‘owns’ the team does not give him a license to treat others differently than any other leader. The fact that anyone would find him fit to lead because of this ‘ownership’ position is forgetting that NBA teams belong to the communities they serve.”

Najafi also said in the letter that anyone who invests in the team are “temporary stewards.” That if “sports leaders” are not held to the same high standard, then how can it be expected to function with “integrity and respect on any level?”

“We owe it to you: employees, players, partners, and your families to provide the same positive workplace environment we would require of any other business,” Najafi added.

“I cannot in good judgment sit back and allow our children and future generations of fans to think that his behavior is tolerated because of wealth and privilege. Therefore, in accordance with my commitment to helping eradicate any form of racism, sexism, and bias, as Vice Chairman of the Phoenix Suns, I am calling for the resignation of Robert Sarver.”

Phoenix Mayor Kate Gallego and some of the city’ councilmembers also released a statement on Thursday how they are “appalled” by the actions detailed in the released report on Mr. Sarver. They called it in the letter “unacceptable” for the Suns leadership to have any association in any matter with a person that would display the “despicable actions” that were detailed in the report.

“We have asked the city staff to investigate any actions we, as leaders of the City of Phoenix, can take in the light of the details substantiated in the report,” Gallego added in the statement.

She and the city councilmembers added, “We are equally concerned about a culture that would enable these actions to occur time and again, with—at most—ineffective disciplinary actions.

The feelings and emotions that have been express by James, Paul, and Tremaglio echoed the stance many took in 2014 when the NBA investigated alleged racist misconduct from the Los Angeles Clippers and their then Governor Donald Sterling.

Those allegations ended up being true and were backed up by some audio of Sterling expressing his feelings about minorities to his then mistress.

James, who was with the Miami Heat then said before a First Round Playoff tilt against the Charlotte Hornets, “There’s no room for Donald Sterling in the NBA. There’s no room for him.”

He added about the Clippers players then, which included Paul, “They have to make a stand. The have to be very aggressive with it. I don’t know what it will be, but we can’t have that in our league.”

The Clippers did take a stance before their Playoff game at the Golden State Warriors they had their shirts inside out with the Clippers insignia inside of their shirts and before they took to their end of the court for warmups took their Clippers warmup shirts off and put them in the middle of the court on the Warriors insignia.

What followed after the Clippers took a stance as Holmes said to host of ESPN’s “NBA Today” Malika Andrews that over a dozen sponsors terminated their partnership with the team.

With the possible loss of PayPal, that means the Suns would see possible $3 million in revenue go out the door with more possible sponsors axing their deals with the Suns if Sarver is not terminated as Governor of the team.

For the last half of his NBA career, James, entering his 20^th NBA season with the Lakers this fall has been a public advocate for social change from speaking out against gun violence against minorities to the importance of preserving the right to vote and how important it is to vote, especially amongst minorities.

In his presser on Wednesday, Commissioner Silver spoke about the concerns he fielded from NBA’s player base, which is close to 75 percent African American. He described those conversations with the NBA players as “disheartening” because we continue to have to deal with certain individuals thinking that just because they are in a position of authority, they have the right to say, speak, and conduct themselves in any kind of matter they choose not understanding the people who they demean, disrespect, belittle are also human beings just like that person doing the harmful act.

“I’ve talked to some players. Those have been private conversations. I’ll leave it for the players to speak directly how they feel,” Silver said.

He added, “Look, I think it’s no secret this is a league where roughly 80 percent of our players are Black. More than half our coaches are Black. I will say that none of them maybe are as shocked as I am, living their lives, that I don’t think they’re reading this saying, ‘Oh my God, I can’t believe this happens.”

For the fourth time in NBA Commissioner Adam Silver’s tenure as NBA Commissioner he is having to deal with inappropriate behavior from an NBA executive. It occurred with the Los Angeles Clippers, Dallas Mavericks, Portland Trail Blazers, and now the Phoenix Suns.

In all three instances, there was swift action taken. For the Clippers after audio was revealed of then Governor Donald Sterling’s inexcusable comments back in 2014 led to him getting the axe and the team was bought by their current Governor Steve Ballmer August 12, 2014 for reportedly $2 billion. In 2018, the Dallas Mavericks front office got cleaned up following a dozen current and former employees characterized the organization of a hostile work environment, that ranged from sexual harassment to domestic violence. In the wake of that scandal, Mavericks Governor Mark Cuban with the hiring of former AT&T Executive Cynthia Marshall as the new Chief Executive Officer. And in December 2021, the Trail Blazers fired General Manager and President of Basketball Operations Neil Olshey after an investigation by the law firm O’Melvey & Myers conducted an independent investigation and found the then 56-year-old Olshey created a hostile work environment where there were many instances of bullying and intimidation, according to a report from Yahoo! Sports. Olshey was replaced by current interim GM Joe Cronin and Executive Vice President Dewayne Haskins took over as the new President of Basketball Operations.

Those three changes did not happen overnight though. And it did not happen at the start of an NBA season, which is where we find ourselves with the Suns as 2022-23 NBA campaign is about to kick-off with Media Day on Sept. 26.

This situation with Robert Sarver being suspended for one-year and fined $10 million dollars for inappropriate conduct is something that will be asked at all 30 teams Media Days. There will be a lot of feelings and emotions about it for sure, especially by the Suns.

What happens from here is anybody’s guess. One thing is for sure from what Tremaglio said to Andrews, a point will be made very clear by any player that is asked that Mr. Sarver’s punishment for his rude and uncalled for behavior is not enough.

“We are all gearing up for a season. We have Media Day coming up. We have Training Camp about to start and our players are really focused on playing the game of basketball and engaging with our fans. And so, to some extent there has not been any discussion around that,” Tremaglio said.

“But I think it’s very clear is that our players are incredibly upset about what has occurred. Their hearts go out to the family’s and all the individuals who’ve actually had to endure this [Sarver’s behavior] for such a long period of time. But at the same time, they [NBA players] recognize they have a job to do and they’re really excited about getting and moving forward with this season.

Information and quotations are courtesy of 7/29/2021 www.forbes.com story, “Sports Illustrated Report Lands Dallas Mavericks At The Center Of Another Sexual harassment Scandal,” by Doyle Rader; 12/3/2021 ESPN.com story, “Portland Trail Blazers Fire GM, President of Basketball Operations Neil Olshey; 9/14/2022 3 p.m. “NBA Today” ESPN With Malika Andrews, Baxter Holmes, Ramona Shelburne, Richard Jefferson, Kendrick Perkins, Brian Windhorst; 9/15/2022 3 p.m. “NBA Today” ESPN With Malika Andrews, Brian Windhorst, Richard Jefferson, Ros Gold-Onwude; 9/16/2022 3 p.m. “NBA Today” ESPN With Malika Andrews, Baxter Holmes, Kendrick Perkins, Zach Lowe; and  https://en.m.wikipedia.org/wiki/Steve_Ballmer#Sports.