The NBA has levied severe penalties against the Los Angeles Clippers, including the forfeiture of five first-round draft picks and a $30 million fine, for violating league salary cap rules in connection with star forward Kawhi Leonard.
An investigation, spanning over a year, concluded that the Clippers engaged in salary cap circumvention by "initiating off-court income opportunities" for Leonard. The league announced the sanctions on Wednesday.
In addition to the draft picks and fine, Clippers owner Steve Ballmer received a one-year suspension from all league and team activities. President of Business Operations Gillian Zucker and President of Basketball Operations Lawrence Frank were also suspended without pay for one year and six months, respectively.
Leonard himself was fined $700,000, and his former business representative, Dennis Robertson, has been banned from any business dealings with NBA teams or personnel for five years.
According to the NBA's summary report, the Clippers organization committed multiple significant rule violations. The team was found to have initiated off-court income opportunities for Leonard with four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance. The Clippers also facilitated endorsement agreements between these companies and Leonard, offering team business as an incentive for the companies to enter these agreements. Furthermore, the team paid personal expenses on behalf of Leonard and his representatives and failed to report improper solicitations for off-court income opportunities made on Leonard's behalf by Robertson.
The league stated that Leonard, through Robertson's actions, violated circumvention rules by pressuring the Clippers to help secure these off-court income opportunities, which he successfully obtained, and by failing to reimburse the team for personal expenses.
The Clippers are also subject to a five-year compliance and monitoring program overseen by the league office.
The five forfeited first-round draft picks are slated for the 2029, 2030, 2031, 2032, and 2033 NBA Drafts. Ballmer's suspension stems from knowingly seeking to help Leonard obtain off-court income, approving a business deal he knew was a precondition for an endorsement agreement, and failing to ensure his organization adhered to circumvention rules. Zucker's suspension is due to her primary culpability for impermissible endorsement arrangements and providing false statements to investigators. Frank's suspension is for his involvement in the endorsement arrangements and approving impermissible expenses for Leonard and his family.