The Los Angeles Clippers have been stripped of five first-round draft picks and fined $30million for breaching salary cap circumvention rules.
Additionally, Clippers owner Steve Ballmer has been banned from all NBA and team activities for a year and player Kawhi Leonard has been ordered to pay the league $700,000.
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| The Clippers have had the book thrown at them by the NBACredit: Getty |
The punishments come following the conclusion of an investigation that found the Clippers got around salary cap rules to sign Leonard as a free agent back in 2019.
NBA statement
An official release from the NBA read: "The NBA announced today that the LA Clippers and Kawhi Leonard have been penalized for violating the salary cap circumvention rules contained in the league’s Collective Bargaining Agreement (CBA) with the National Basketball Players Association (NBPA).
"This determination was based upon information developed through an independent investigation conducted by the law firm of Wachtell, Lipton, Rosen and Katz.
"The investigation found a pattern of misconduct and multiple significant rules violations by the Clippers organization, a prior offender of the salary cap circumvention rules. As described in a summary report prepared by Wachtell Lipton, available here, the Clippers broke the rules by:
"Affirmatively initiating off-court income opportunities between Mr. Leonard and four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance;
"Facilitating endorsement agreements between these companies and Mr. Leonard;
"Inducing the companies to enter into these agreements by offering them business from the team;
"Paying personal expenses on behalf of Mr. Leonard and his representatives; and
"Failing to report improper solicitations for off-court income opportunities made on Mr. Leonard’s behalf through his then-business manager, Dennis Robertson.
"Mr. Leonard, through the conduct of Mr. Robertson on his behalf, violated the circumvention rules by pressuring the Clippers to assist him in obtaining off-court income opportunities, successfully obtaining those opportunities, and failing to reimburse payments by the Clippers for personal expenses.
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| Ballmer must cough up an eye-watering $30mCredit: Getty |
"Based on this misconduct, the NBA has imposed the following penalties:
"The Clippers shall forfeit five first-round draft picks, one in each of the 2029, 2030, 2031, 2032, and 2033 NBA Drafts.
"The Clippers are fined $30 million.
"Clippers owner Steve Ballmer is suspended from all league and team activities for one year for knowingly seeking to help Mr. Leonard obtain off-court income opportunities, for approving a business deal that he knew was a precondition for Aspiration to enter into an endorsement agreement with Mr. Leonard, and for his failure to create conditions under which his organization abided by the NBA’s circumvention rules.
"Clippers President of Business Operations Gillian Zucker is suspended without pay for one year for being primarily and directly culpable for the impermissible endorsement arrangements and for providing false and misleading statements to investigators.
"Clippers President of Basketball Operations Lawrence Frank is suspended without pay for six months for his involvement with the impermissible endorsement arrangements and for approving impermissible expenses incurred by Mr. Leonard and his family.
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| Leonard, meanwhile, has been hit with a six-figure fineCredit: Getty |
"The Clippers organization and personnel are subject to a compliance and monitoring program overseen by the league office for a period of five years.
"In connection with his violations, Mr. Leonard is required to pay the league $700,000.
"Mr. Robertson is banned from conducting business or otherwise engaging with NBA teams and their affiliates on behalf of or with respect to any player, employee, or other league or team personnel for a period of five years."
It was also revealed that the NBA and National Basketball Players Association (NBPA) made an agreement confirming the penalties.
NBA Commissioner Adam Silver said: “The NBA’s collectively bargained system for determining player compensation is a fundamental component of the basketball competition that the league oversees for the benefit of the teams and players and ultimately the fans.
"I am deeply disappointed by the flagrant violations of our rules and by the Clippers’ institutional and leadership failures that led to this misconduct. The severity of the penalties reflects the seriousness of the violations."
- Tom Hancock
