NBA Fines Clippers, Strips Five First-Round Picks
The NBA penalized the Los Angeles Clippers and Kawhi Leonard for salary cap circumvention, forfeiting five first-round picks and fining the team $30
The NBA announced on Wednesday that the Los Angeles Clippers and Kawhi Leonard have been penalized for violating salary cap circumvention rules. The penalties follow an independent investigation by the law firm Wachtell, Lipton, Rosen & Katz.
The investigation found a pattern of misconduct by the Clippers, which the league identified as a prior offender of these rules. According to a summary report, the team violated rules by initiating off-court income opportunities between Leonard and four companies doing business with the Clippers: Aspiration Partners, Boingo Wireless, Daktronics and Lockton Insurance.
Investigation Findings
The report detailed multiple violations. The Clippers facilitated endorsement agreements between Leonard and the companies. They induced the companies to enter those deals by offering them business from the team. The organization also paid personal expenses on behalf of Leonard and his representatives. Furthermore, the Clippers failed to report improper solicitations for off-court income made through Leonard's then-business manager, Dennis Robertson.
The NBA found that Leonard, through Robertson's conduct, violated rules by pressuring the Clippers to help secure these opportunities. He also failed to reimburse the team for personal expenses paid on his behalf.
Penalties for the Clippers
Based on these findings, the league imposed severe penalties on the franchise. The Clippers will forfeit five first-round draft picks and pay a $30 million fine. The picks to be forfeited are one in each of the following drafts:
| Draft Year |
|---|
| 2029 |
| 2030 |
| 2031 |
| 2032 |
| 2033 |
This forfeiture is in addition to the five first-round picks and Shai Gilgeous-Alexander the Clippers traded to Oklahoma City in 2019 for Paul George, a move made as part of their effort to sign Leonard.
Suspensions for Personnel
Clippers owner Steve Ballmer has been suspended from all league and team activities for one year. The suspension is for knowingly helping Leonard obtain off-court income, approving a business deal he knew was a precondition for an Aspiration endorsement, and failing to ensure organizational compliance.
President of Business Operations Gillian Zucker is suspended without pay for one year. The league found her primarily and directly culpable for the impermissible arrangements and for providing false statements to investigators. President of Basketball Operations Lawrence Frank is suspended without pay for six months for his involvement in the arrangements and for approving impermissible expenses for Leonard and his family.
Additional Sanctions and Aftermath
The Clippers organization will be subject to a five-year compliance and monitoring program overseen by the league. Kawhi Leonard must pay the league $700,000 for his violations. Dennis Robertson is banned for five years from conducting business with NBA teams or affiliates on behalf of any player or personnel.
Leonard was traded to the Toronto Raptors in June. That trade is now expected to be formally approved since he will not receive a suspension from the NBA. The league and the National Basketball Players Association have agreed the penalties are final and binding.
NBA Commissioner Adam Silver addressed the findings. "I am deeply disappointed by the flagrant violations of our rules and by the Clippers' institutional and leadership failures that led to this misconduct," Silver said. "The severity of the penalties reflects the seriousness of the violations." Wachtell Lipton continues to receive information, and the league stated it will consider further action as appropriate.
