"There was never a discussion involving the NBA in which we would modify Mr. Sterling's penalty in any way whatsoever. Any suggestion otherwise is complete fabrication," NBA spokesman Mike Bass told the Associated Press.

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According to AP the deal that currently exists would allow "Shelly Sterling to remain close to the organization by allowing for up to 10 percent of the team—or $200 million—to be spun off into a charitable foundation that she would essentially run."

The proposed foundation would help underprivileged families, battered women, minorities and inner-city youths; Shelly Sterling and Ballmer would be co-chairs.

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Shelly Sterling would also get to keep special privileges like floor seats at games and plush parking.

A source told AP that the proposed contract conditions would allow Ballmer the right to buy back Shelly Sterling's "10 percent portion of the team for a pre-designated price upon Shelly Sterling's death."

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Read more at the Associated Press.