NBA sanctions Clippers owner and staff over salary-cap circumvention scheme
The league suspended Clippers owner Steve Ballmer for a year, fined the team $30 million and stripped five first-round picks after finding violations involving Kawhi Leonard’s off-court endorsement deal.
The NBA announced Wednesday that Los Angeles Clippers owner Steve Ballmer will be suspended for one year, the franchise will forfeit five first-round draft selections and pay a $30 million fine for breaching salary-cap circumvention rules. Two-time NBA Finals MVP Kawhi Leonard received a $700,000 penalty, president of basketball operations Lawrence Frank was banned for six months, and team president of business operations Gillian Zucker was suspended for a year.
The penalties follow a year-long investigation conducted by an external law firm. The league said Ballmer knowingly helped Leonard secure off-court income opportunities and approved a business deal that facilitated an endorsement contract with Aspiration Fund Adviser LLC, a company that later filed for bankruptcy. Leonard was found to have pressured the Clippers to assist him in obtaining those opportunities and failed to reimburse related expenses.
Commissioner Adam Silver said the violations were “flagrant” and reflected “institutional and leadership failures” within the Clippers organization. The NBA and the players’ union have agreed that the sanctions are final and binding, though the team indicated it will appeal the findings.
In response, the Clippers issued a statement rejecting the league’s conclusions, describing the investigation as biased and promising to challenge the penalties through arbitration. Ballmer’s attorney, David Kelley, called the investigation a “witch hunt” and argued that no rule prohibited the introductions made on Leonard’s behalf.
Leonard, whose trade to the Toronto Raptors is on hold, said he entered the contracts in good faith and expressed regret for the distraction caused to fans and his family. He added that he remains eager to join the Raptors once the matter is resolved.
The NBA also imposed a five-year compliance and monitoring program on the Clippers, banned Leonard’s former business manager Dennis Robertson from dealing with NBA teams for five years, and ordered Frank and Zucker to forfeit their salaries during their suspensions.