NBA Hits Clippers With Historic Penalties Over Salary Cap Circumvention
AI-generated image · US National Wire
Commissioner Adam Silver strips Los Angeles of five first-round picks and fines Steve Ballmer $30 million following an investigation into illicit payments to Kawhi Leonard.
NBA Commissioner Adam Silver has issued the harshest punishment in league history against the Los Angeles Clippers and owner Steve Ballmer, as first reported by The Guardian. The league is fining the franchise $30 million and stripping them of five first-round draft picks after confirming the team circumvented salary cap rules to pay superstar Kawhi Leonard in 2021.
An independent investigation conducted by the law firm Wachtell, Lipton, Rosen & Katz found that the Clippers initiated off-court income opportunities for Leonard through four companies doing business with the team: Aspiration, Boingo Wireless, Daktronics, and Lockton Insurance. The investigation revealed the Clippers induced these companies to enter agreements by providing them with team business, such as a Daktronics scoreboard and an Aspiration jersey patch. Specifically, journalist Pablo Torre previously alleged that Ballmer, who has an estimated net worth of $152.7 billion, used a no-show endorsement deal with the now-bankrupt Aspiration to pay Leonard $28 million.
In addition to the fine and loss of picks, Silver has suspended Ballmer for one year. Leonard was fined $700,000, while his uncle and former business manager, Dennis Robertson, received a five-year league ban for soliciting the agreements.
The Clippers have rejected the punishments, claiming the investigation was biased. The fallout comes as the franchise prepares to trade Leonard to the Toronto Raptors in exchange for Brandon Ingram, Gradey Dick, two first-round picks, two second-round picks, and a pick-swap, according to ESPN via The Guardian. The loss of draft capital is particularly severe as the Clippers now possess no natural first-round picks from 2029 through 2033.