NBA Penalizes Clippers and Kawhi Leonard for Cap Circumvention

The NBA has issued penalties against the Los Angeles Clippers and Kawhi Leonard following a year-long investigation into salary cap circumvention involving endorsement deals, according to CBS Sports.

As reported by CBS Sports, the Clippers were fined $30 million and forfeited five first-round draft picks from 2029 to 2033. The league also issued suspensions to several executives: owner Steve Ballmer was suspended for one year, President of Business Operations Gillian Zucker was suspended for one year, and President of Basketball Operations Lawrence Frank received a six-month suspension. Leonard was fined $700,000, while his uncle and former representative, Dennis Robertson, is banned from NBA business dealings for five years.

According to the investigation, the Clippers facilitated off-court income for Leonard with four companies: Aspiration, Daktronics, Boingo Wireless, and Lockton Insurance. The league found the team induced these companies into deals by offering them business from the franchise and paid personal expenses for Leonard and his representatives. Specifically, the NBA noted that Leonard, through the conduct of Robertson, pressured the Clippers to assist in obtaining these opportunities.

Despite these findings, the NBA did not void Leonard's contract, a sharp contrast to a 2000 case where Joe Smith's $86 million contract with the Minnesota Timberwolves was voided. CBS Sports reports the distinction exists because the Timberwolves had a written agreement with Smith to sign smaller deals to keep the cap clean, whereas no such written stipulation was found tying Leonard's endorsements to his signing or extension with the Clippers.

Leonard is expected to be traded to the Toronto Raptors, a deal that had been on hold during the probe. The Clippers have publicly rejected the NBA's findings, calling the investigation conducted by law firm Wachtell Lipton "heavily biased."