The NBA charged Los Angeles Clippers owner Donald Sterling on Monday with racist conduct detrimental to the league, setting a June 3 hearing where owners could strip the team from him.
The league announced its bid to terminate his ownership and that, under NBA rules, Sterling had the right to respond to the claims by May 27.
Sterling, banned for life and fined $US2.5 million ($A2.7 million) by the league for racist remarks, can attend and make a presentation at the special hearing of the Board of Governors (team owners) that is set for just two days before the start of the NBA finals.
A vote of 75 per cent of league owners is required to uphold the charge against Sterling and terminate his interest in the Clippers, opening the door for their sale.
Minnesota Timberwolves owner Glen Taylor, chairman of the governing board, will preside over the meeting.
Sterling admitted to saying he did not want his girlfriend to bring black people to Clippers games and did not want her to post photos with black people on social media websites.
The 80-year-old later apologised and declared he was not a racist and that he had made a terrible mistake and asked for forgiveness from fellow owners.
But Sterling then insulted NBA legend Magic Johnson, prompting a NBA apology for the new remarks.
Miami Heat superstar LeBron James is among those saying there is no place in the NBA for Sterling.
The league asserts Sterling's conduct has damaged and continues to damage the NBA and its teams.
"Sterling's actions and positions significantly undermine the NBA's efforts to promote diversity and inclusion, damage the NBA's relationship with its fans, harm NBA owners, players and Clippers team personnel and impair the NBA's relationship with marketing and merchandising partners, as well as with government and community leaders."
Sponsors pulled back from the Clippers after the remarks and, despite the controversy, LA made the second round of the playoffs.
At one stage, players wore their warm-up outfits inside out to avoid showing the team logo.
"Sterling engaged in other misconduct as well, including issuing a false and misleading press statement about this matter," a NBA statement said.
"All of these acts provide grounds for termination under several provisions of the NBA Constitution and related agreements."
Sterling has said he would look at taking the NBA to court to fight being stripped of the team, which could fetch at least $US600 million ($A649 million).
The NBA appointed former Time Warner chairman Dick Parsons as Clippers interim chief until the ownership situation is settled.
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