The Los Angeles Clippers have received massive penalties after an investigation into the team and player Kawhi Leonard. The list includes losing out on the next five first-round draft picks.
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According to a press release from the NBA, the law firm of Wachtell, Lipton, Rosen & Katz conducted an investigation and determined that the Clippers and Leonard violated salary cap circumvention rules contained in the Collective Bargaining Agreement (CBA).
The list of transgressions included the following:
?—? Affirmatively initiating off-court income opportunities between Mr. Leonard and four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance;
?—? Facilitating endorsement agreements between these companies and Mr. Leonard;
?—? Inducing the companies to enter into these agreements by offering them business from the team;
?—? Paying personal expenses on behalf of Mr. Leonard and his representatives; and
?—? Failing to report improper solicitations for off-court income opportunities made on Mr. Leonard's behalf through his then-business manager, Dennis Robertson.
As a result, the team has been fined $30 million. It has also lost first-round picks in the 2029-32 NBA Drafts. Team owner Steve Ballmer has received a one-year suspension for multiple reasons, including "knowingly seeking to help Mr. Leonard obtain off-court income opportunities."
Clippers President of Business Operations Gillian Zucker is suspended without pay for one year for multiple violations, including "providing false and misleading statements to investigators." Clippers President of Basketball Operations Lawrence Frank is suspended without pay for six months for multiple violations. This includes his involvement in impermissible endorsement arrangements.
The report from the NBA also said that Leonard, "through the conduct of Mr. Robertson on his behalf, violated the circumvention rules by pressuring the Clippers to assist him in obtaining off-court income opportunities, successfully obtaining those opportunities, and failing to reimburse payments by the Clippers for personal expenses."
The veteran NBA player will now have to pay a $700,000 fine as he moves to the Toronto Raptors to being the 2026-27 season.
"Integrity and respect for this game are fundamental to who I am," Leonard said in a statement on Instagram. "I accept full responsibility for lapses in judgment by people within my inner circle and regret the distraction this situation has caused the fans and my family.
"I entered into my contract with the Clippers as well as the agreements in question in good faith, fully committed to fulfilling my obligations and with no knowledge of any intent on anyone's part to circumvent the salary cap.
"For 15 years, my priority has been giving everything to my family, the game, and those I shared the court with. As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate."
While these penalties are final, they may not mark the end of this situation. The law firm that conducted the investigation continues to receive "relevant" information, and the NBA says that further action could be considered.
