Business & Finance
NBA penalizes Clippers and owner Steve Ballmer over salary cap violations
The league stripped five first-round draft picks, levied a $30 million fine, and issued a one-year suspension to Ballmer after an independent probe into Kawhi Leonard's endorsement deals.
The short version
- NBA Commissioner Adam Silver imposed historic penalties on the Los Angeles Clippers, suspending owner Steve Ballmer for one year, issuing a $30 million fine, and stripping five first-round draft picks following a salary cap investigation.
- The inquiry concluded the Clippers arranged improper off-court endorsement deals for forward Kawhi Leonard with four corporate partners.
- Leonard received a $700,000 fine and his former manager was banned for five years, while a pending trade sending Leonard to the Toronto Raptors is expected to proceed.
- The Clippers strongly disputed the findings, labeling the probe biased and pledging to challenge the disciplinary actions via arbitration and legal avenues.
Key facts
- An independent investigation by Wachtell, Lipton, Rosen & Katz concluded that the Clippers breached salary cap circumvention rules by facilitating endorsement deals for Kawhi Leonard with four corporate partners: Aspiration, Boingo Wireless, Daktronics, and Lockton Insurance.[The Guardian]
- The NBA stripped the Clippers of five first-round draft picks, fined the franchise $30 million, and suspended owner Steve Ballmer for one year.[The Guardian]
- Kawhi Leonard was fined $700,000, and his uncle and former business manager, Dennis Robertson, was banned from the league for five years.[The Guardian]
- A previously agreed trade sending Leonard to the Toronto Raptors in exchange for Brandon Ingram, Gradey Dick, and multiple draft picks is expected to be finalized.[The Guardian]
- The Clippers organization rejected the penalties, alleging the investigation was biased and announcing plans to pursue arbitration and legal remedies.[The Guardian]
What remains uncertain
- The outcome of the Clippers' planned legal challenges and arbitration proceedings against the NBA's sanctions remains unknown.[The Guardian]