The NBA has imposed severe penalties on the Los Angeles Clippers following a yearlong investigation into salary-cap circumvention related to Kawhi Leonard. The league will strip the Clippers of five future first-round draft picks and fine owner Steve Ballmer $30 million, according to ESPN.
Additionally, Ballmer, along with general manager Lawrence Frank and president of business operations Gillian Zucker, have received suspensions. Kawhi Leonard will pay $700,000 in restitution for improper benefits funneled through his uncle and former business representative, Dennis Robertson. Leonard will not face a suspension, and his contract remains intact. Robertson has been banned from all NBA business dealings.
These penalties place the Clippers' punishment in the conversation with some of the most severe front-office sanctions in league history.
Historical NBA Penalties
The NBA has a history of imposing significant penalties for various infractions. The "Malice at the Palace" incident in 2004 resulted in nine players being suspended for a combined 146 games, leading to widespread changes in league security and player conduct policies.
In 2000, the Minnesota Timberwolves faced penalties for secretly arranging future contracts with Joe Smith to circumvent the salary cap. The league initially stripped the Timberwolves of five first-round picks, fined the organization $3.5 million, and voided Smith's contract. While two picks were eventually restored, this five-pick penalty set a precedent for the league's stance on cap circumvention.
More recently, Phoenix Suns owner Robert Sarver was suspended for one year and fined $10 million in 2022 for workplace misconduct. At the time, the fine was substantial, but Ballmer's reported $30 million penalty is three times larger.
Perhaps the most extreme individual punishment was against former Los Angeles Clippers owner Donald Sterling in 2014. After racist comments became public, Commissioner Adam Silver banned Sterling for life, fined him $2.5 million, and initiated the process that led to the sale of the team.
The Mavericks faced penalties in 2018 for widespread workplace misconduct, leading owner Mark Cuban to contribute $10 million to relevant organizations and implement organizational reforms.
The current penalty against the Clippers, which includes five first-round picks, a record financial fine, and multiple executive suspensions, is viewed as a broad and exceptionally severe ruling, drawing parallels to the Joe Smith scandal but exceeding it in financial scope and the number of individuals sanctioned.