NBA Slaps Clippers With Historic Penalties Over Salary Cap Circumvention

NBA Commissioner Adam Silver has issued the harshest punishment in league history against the Los Angeles Clippers and owner Steve Ballmer, as first reported by The Guardian, following a year-long investigation into salary cap circumvention. The league fined the franchise $30 million, stripped them of five first-round draft picks, and suspended Ballmer for one year.

According to reporting from The Guardian, an independent investigation by the law firm Wachtell, Lipton, Rosen & Katz found that the Clippers violated circumvention rules by initiating off-court income opportunities for superstar Kawhi Leonard. The investigation revealed the team induced four companies—Aspiration, Boingo Wireless, Daktronics, and Lockton Insurance—to enter endorsement deals with Leonard by providing them with Clippers business, including a Daktronics scoreboard and an Aspiration jersey patch. Specifically, journalist Pablo Torre previously alleged that Ballmer used Aspiration, a now-bankrupt sustainability services firm he invested in, to pay Leonard $28 million through a no-show endorsement deal.

Silver stated that the penalties reflect "institutional and leadership failures" and the "flagrant violations" of the league's collectively bargained compensation system. While the Clippers "vehemently reject" the findings, calling the investigation biased, Leonard accepted responsibility on Instagram for lapses in judgment by his inner circle. This includes his uncle and former business manager, Dennis Robertson, who was banned from the NBA for five years for soliciting the agreements.

Leonard's only penalty is a $700,000 payment to the league. Per ESPN, Leonard is likely headed to the Toronto Raptors in a trade that would send Brandon Ingram, Gradey Dick, two first-round picks, two second-round picks, and a pick-swap to Los Angeles. The Clippers now possess no natural first-round draft picks from 2029 through 2033.