In 1970–71 he coached the Utah Stars to an ABA title and was a co-recipient of the ABA Coach of the Year honors. After resigning as coach for the Utah Stars, Sharman signed a contract to coach the Los Angeles Lakers. Controversy later ensued when the owner of the Utah Stars brought suit against Sharman for breach of contract stemming from his resignation, and a tort case against the owner of the Los Angeles Lakers for inducing such breach of contract. Sharman was originally ordered to pay $250,000 in damages, but later appealed the trial court decision and reversed the judgement.