The National Basketball Association has levied severe penalties against the Los Angeles Clippers for circumventing league salary cap rules through "initiating off-court income opportunities" for star forward Kawhi Leonard. The franchise faces a $30 million fine and will forfeit five first-round draft picks between 2029 and 2033.
In addition to the team penalties, NBA Commissioner Adam Silver suspended owner Steve Ballmer for one year, President of Business Operations Gillian Zucker for one year, and President of Basketball Operations Lawrence Frank for six months. Leonard himself must pay the NBA $700,000, and his former business representative and uncle, Dennis Robertson, has been banned from NBA business dealings for five years.
The Clippers organization has stated its intent to "vigorously challenge" the league's findings and penalties. However, the NBA released a summary report from an independent investigation conducted by the law firm Wachtell, Lipton, Rosen & Katz, detailing extensive evidence.
The investigation, prompted by podcast reports in September 2025, focused on allegations that the Clippers and Ballmer violated salary cap rules through deals with the now-bankrupt company Aspiration, as well as Boingo Wireless, Daktronics, and Lockton Insurance.
Damning Evidence in Endorsement Deals
The NBA report detailed how the Clippers allegedly "initiated, facilitated and induced" three companies to enter endorsement deals with Leonard, which were reportedly tied to consulting agreements between those companies and the Clippers. This arrangement was allegedly designed to fund Leonard's off-court income.
According to the report, in the spring of 2020, Daktronics became a candidate to supply digital scoreboard and signage technology for the new Intuit Dome. During discussions, the Clippers informed Daktronics that the team desired a "spend back" arrangement, where the vendor would provide business back to the Clippers. Zucker reportedly suggested that this could be achieved through an endorsement deal between Daktronics and Leonard.
Investigators found that Daktronics believed failing to enter a commercial relationship with Leonard could jeopardize its bid for the Intuit Dome contract. Later, a senior Clippers executive allegedly specified the exact terms the team expected Daktronics to provide to Leonard: $3 million per year for two years. Daktronics eventually agreed to this endorsement deal, finalized in July 2020.
Furthermore, in February 2021, a senior Clippers executive allegedly approached Daktronics again, suggesting an increase in the payment to Leonard due to the team increasing its spending on the scoreboard project. Daktronics agreed to add $2 million to Leonard's second-year payment after negotiations, again citing concerns about jeopardizing its business with the Clippers. The report emphasized that the impetus for this additional payment originated entirely from the Clippers, not Daktronics.
Consulting Deals as a 'Ruse'
Evidence also suggests the Clippers may have funded other endorsement deals for Leonard through consulting agreements with companies that were simultaneously receiving substantial payments from the team. A "credible witness" with direct knowledge of one such consulting agreement described it as a "ruse, designed and intended to be a vehicle for the team to provide the company with funds to be paid to Mr. Leonard." This witness stated that the "sham consulting agreement" was accepted because the company was promised a much larger services contract with the Clippers.
The Clippers maintain their innocence, asserting that the investigation was "heavily biased" and sought to "justify a predetermined narrative rather than facts and evidence."