People are forgetting something. If the League just up and voids players contracts, leaves this guys team off the schedule and just ignores him, he still owns the team and that team is still part of the NBA. This means that if the League does all this, the League will still have to pay him because the League has "Revenue Sharing".
The NBA does not have a leg to stand on, not one. Even if all players drafted decide to play in Europe for a year because this guys team drafted them and no one is on the team, he will still get paid by the League.
If all of a sudden, to get the team out from under him and puts his team on the schedule but he has no players, he can hire bums off the street and put them on the floor to play.
This racist has the NBA over a barrel and it would be wise for the NBA to wait him out until he's dead.
EDIT: Also, if the players walk out on this team or on all the teams while they are under contract, this owner or all the owners will sue the players for lost revenue. Hell, if the NBA tries to do anything, this guy will counter sue for lost revenue and win especially after he wins the lawsuit against the NBA if they try to take his team.