The NBA has levied a $30 million fine, a one-year suspension for owner Steve Ballmer, and the forfeiture of five first-round draft picks against the Los Angeles Clippers in a salary cap circumvention scandal involving player Kawhi Leonard. The penalties, described as "poison-pill" by the league, stem from a report by law firm Wachtell, Lipton, Rosen & Katz.
Documents released as part of the investigation include notes from Clippers president Lawrence Frank, dated April 2020, detailing frustrations from Leonard's then-manager, Dennis "Uncle" Robertson. Robertson reportedly expressed dissatisfaction with the Clippers' efforts to fulfill promised off-court business opportunities, perceiving them as "bulls-t deals." According to Frank's notes, Robertson stated, "I have to get paid," to Clippers president of business operations Gillian Zucker.
Ballmer allegedly responded to Robertson by emphasizing that Clippers personnel were working collectively to help Leonard achieve his financial goals. This conversation occurred nine months after Leonard entered free agency, suggesting Robertson's frustration had been building.
Further revelations indicate that Aspiration, a sustainability company later indicted on fraud and conspiracy charges, agreed to pay Leonard $48 million in cash and stock as part of his Clippers contract. In exchange, Aspiration was to be offered business contract opportunities with the Clippers' arena, The Forum, which Ballmer acquired in 2020. Aspiration founder Joe Sanberg allegedly communicated an ultimatum to an unnamed business agent, stating that the Kawhi deal was contingent on the Forum deal, and that failure to secure it would lead to the Clippers being "f--ked."
Evidence suggesting Ballmer's awareness comes from an email by former CFO Eric Chan on March 31, 2022. Chan questioned whether Ballmer understood that if the Aspiration deal collapsed, Sanberg would inform Leonard that his $12 million deal was no longer viable due to Clippers management. Ballmer later told investigators he was aware of Sanberg's threats to jeopardize the endorsement deal if the Forum Agreement was not executed promptly.
Investigators found that the Clippers formally approved the Forum Agreement in April 2022, an action deemed a violation of NBA circumvention rules. The Forum Agreement was valued at a minimum of $28 million, though its precise value and whether it was intended to offset the team's carbon emissions remain unclear.
Despite the evidence, Ballmer has maintained the team's innocence. In a statement, he rejected the NBA's findings as the result of a biased investigation and announced the team's intention to "vigorously challenge these findings and penalties through every avenue available." Ballmer expressed anticipation for an "ethical and impartial arbitration process."
Kawhi Leonard himself received a fine of $700,000 but no suspension from the league. A "credible witness with direct knowledge" reportedly told investigators that the consulting agreement signed with Aspiration was a "ruse" designed to channel funds to Leonard.