Los Angeles Clippers owner Donald Sterling has been banned for life and heavily fined by the National Basketball Association (NBA) over racist comments he made.
NBA Commissioner Adam Silver told a news conference that Sterling was fined $2.5m and suspended from the league for life in the wake of his rant - in which he told his girlfriend he did not want her to bring black friends to Clippers games.
Sterlings's comments have triggered outrage in the United States with NBA stars and President Barack Obama condemning them.
Silver said: "The views expressed by Mr Sterling are deeply offensive and harmful. That they came from an NBA owner only heightens the damage and my personal outrage.
"We stand together in condemning Mr Sterling's views. They simply have no place in the NBA."
Silver said Sterling had admitted it was his voice in the recording, which was posted on the website TMZ over the weekend.
Sterling is immediately barred from attending any NBA games or practices, be present at any Clippers office or facility, or participate in any business or player personnel decisions involving the team.
He also cannot participate in any league business going forward.
"This league is far bigger than any one owner, any one coach and any one player," Silver said.
Silver said he will urge the NBA owners to exercise their authority to force Sterling to sell the team, which is valued by Forbes magazine at $575 million.
Sterling bought the club in 1981 for $12 million.
Sterling's ban has been welcomed by NBA stars past and present.
Magic Johnson was at the centre of Sterling's original comments to his girlfriend as she has posted a photograph of herself with the NBA legend.
"Commissioner Silver showed great leadership in banning LA Clippers owner
Donald Sterling for life," he tweeted.
"Current and former NBA players now know that in Commissioner Adam Silver we have a great leader leading our league."
Miami Heat star man LeBron James tweeted: "Commissioner Silver thank you for protecting our beautiful and powerful league!! Great leader!! #BiggerThanBasketball #StriveForGreatness."
Dallas Mavericks owner Mark Cuban added: "I agree 100% with Commissioner Silvers findings and the actions taken against Donald Sterling."