NBA fines Clippers $30 million and suspends owner over Kawhi Leonard salary-cap scheme
The league imposed a $30 million fine, a one-year suspension on owner Steve Ballmer, and the loss of five first-round picks after finding the Clippers violated salary-cap rules in a deal involving Kawhi Leonard.
The NBA announced a $30 million penalty against the Los Angeles Clippers and a one-year suspension for owner Steve Ballmer, adding five forfeited first-round draft selections as part of a punitive package for breaching salary-cap regulations. The sanctions stem from a scheme that linked Leonard’s three-year contract, signed in 2021, to a separate business agreement with Aspiration, a sustainability firm.
Law firm documents released by Wachtell, Lipton, Rosen & Katz show internal communications in which Leonard’s former manager, Dennis Robertson, expressed frustration over delayed off-court business deals and urged Ballmer to expedite payments. The paperwork also indicates that Aspiration agreed to pay Leonard $48 million in cash and stock, contingent on a deal for the Clippers’ arena, The Forum, valued at at least $28 million.
Investigators said the Forum agreement, approved in April 2022, was used to funnel funds to Leonard, violating NBA rules that prohibit circumvention of the salary cap. Former Clippers CFO Eric Chan’s email suggested Ballmer was aware that the deal could collapse without the arena contract.
Ballmer has denied wrongdoing, calling the league’s findings “provably false” and pledging to contest the penalties through arbitration. Leonard himself received a $700,000 fine but no suspension.
The NBA indicated that further investigation may continue as additional witnesses come forward.