NBA Slaps Clippers With Record 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 The Guardian first reported, following an investigation into salary cap circumvention. The league is fining the franchise $30 million, stripping them of five first-round draft picks, and suspending Ballmer for one year.

According to reporting from The Guardian, an independent investigation conducted 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. These deals involved four companies that conduct business with the team: Lockton Insurance, Daktronics, Boingo Wireless, and Aspiration. Specifically, journalist Pablo Torre alleged that Ballmer used Aspiration—a sustainability services company Ballmer invested in—to pay Leonard $28 million via a no-show endorsement deal. The investigation found the Clippers induced these companies to enter agreements by providing them with team business, including a Daktronics scoreboard and an Aspiration jersey patch.

Silver stated the penalties reflect the "seriousness of the violations" regarding the league's collectively bargained compensation system. While the Clippers "vehemently reject" the findings, Leonard accepted responsibility on Instagram for lapses in judgment by his inner circle, including former business manager Dennis Robertson, who received a five-year league ban. Leonard was fined $700,000.

As a result of the penalties, the Clippers will have no natural first-round draft picks from 2029 through 2033. Meanwhile, ESPN reports that a previously paused trade to send Leonard to the Toronto Raptors is expected to proceed. In exchange, Los Angeles will receive Gradey Dick, Brandon Ingram, two first-round picks, two second-round picks, and a pick-swap.