Business & Finance
NBA suspends Clippers owner Steve Ballmer and strips five draft picks over salary cap violations
The league issued a $30 million team fine, executive bans, and a $700,000 penalty for Kawhi Leonard following an investigation into improper off-court income deals.
The short version
- The NBA penalized the Los Angeles Clippers for circumventing salary cap rules through improper off-court endorsements and personal expense arrangements tied to Kawhi Leonard.
- Owner Steve Ballmer received a one-year suspension, the organization was fined $30 million, and the team will forfeit first-round draft picks from 2029 through 2033.
- Top executives Gillian Zucker and Lawrence Frank received unpaid suspensions, and Leonard was ordered to pay $700,000.
- The Clippers and team personnel will operate under a five-year league-monitored compliance program.
Key facts
- The NBA suspended Clippers owner Steve Ballmer for one year after an investigation found he knowingly assisted Kawhi Leonard in obtaining improper off-court income opportunities.[CNBC · NBC News · Associated Press]
- The Clippers were fined $30 million and ordered to forfeit five consecutive first-round draft picks from 2029 through 2033.[The Guardian · CNBC · Fox News · Associated Press · CBS News]
- President of business operations Gillian Zucker was suspended for one year without pay, while president of basketball operations Lawrence Frank received a six-month unpaid suspension.[The Guardian · CNBC · NBC News]
- Kawhi Leonard was ordered to pay a $700,000 penalty for pressuring the organization for off-court income deals and failing to reimburse payments made for personal expenses.[CNBC · NBC News · Associated Press]
- An independent investigation by law firm Wachtell, Lipton, Rosen and Katz found the team facilitated deals with four commercial partners: Aspiration, Boingo Wireless, Daktronics, and Lockton Insurance.[The Guardian · NBC News]
- Leonard stated that he entered contracts in good faith without intent to circumvent rules, though he accepted responsibility for lapses in judgment by associates in his inner circle.[NBC News · Fox News · Associated Press]
What remains uncertain
Sources
- NBA suspends Clippers owner Ballmer, fines team $30M, Kawhi Leonard $700K in cap circumvention caseAssociated Press
- NBA suspends Clippers owner Ballmer for one year in Kawhi Leonard salary cap probeCNBC
- NBA levies astonishing penalty against Clippers over cap circumvention involving Steve Ballmer, Kawhi LeonardFox News
- NBA suspends Clippers owner for a year, docks team first-round draft picks from Kawhi Leonard probeNBC News - Top Stories
- Clippers docked five first-round draft picks and fined $30m over Kawhi Leonard scandalThe Guardian - US
- Clippers, Leonard penalized by NBA for alleged violation of salary cap rulesCBS News - Top Stories