The National Basketball Association announced on September 2 that the Los Angeles Clippers violated salary-cap circumvention rules in the league’s collective bargaining agreement and imposed penalties on the franchise, owner Steve Ballmer, two team executives, and forward Kawhi Leonard.
According to the NBA, a summary report prepared by the law firm Wachtell Lipton found that the Clippers initiated off-court income opportunities between Leonard and four companies that did business with the team: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance. The league said the investigation found a pattern of misconduct and multiple significant rules violations by an organization that had previously been penalized for cap-circumvention issues.
The Clippers must forfeit first-round draft picks in 2029, 2030, 2031, 2032, and 2033 and pay a $30 million fine. Multiple outlets reporting the announcement described the fine as the largest team fine in NBA history. Ballmer was suspended from all league and team activities for one year. The NBA said he knowingly sought to help Leonard obtain off-court income opportunities, approved a business deal that he knew was a precondition for Aspiration to enter an endorsement agreement with Leonard, and failed to create conditions under which the organization followed circumvention rules.
Clippers president of business operations Gillian Zucker was suspended without pay for one year. President of basketball operations Lawrence Frank was suspended without pay for six months. Leonard must pay the league $700,000. His uncle, Dennis Robertson, was banned for five years from conducting business with NBA teams and affiliates on behalf of players or other league personnel. The organization was placed under a five-year compliance and monitoring program.
Leonard was not suspended and was instead fined $700,000. The Clippers disputed the findings and said they would fight the penalties.
SOURCES: NBA, Los Angeles Times, BBC Sport, Reuters, The Athletic, ESPN, The Guardian
