Los Angeles Clippers owner Steve Ballmer has issued a statement expressing "sincere regrets" and apologizing to fans following the NBA's decision to penalize the franchise for circumventing the league's salary cap. The NBA investigated the Clippers for "initiating off-court income opportunities" for star forward Kawhi Leonard, leading to significant sanctions.
"This has been a very difficult time for everybody associated with the Clippers, and for that, I have sincere regrets," Ballmer stated. "I want to apologize to our fans, employees, and my fellow NBA team owners for the distraction and distress this matter has caused, for which I accept responsibility as principal owner."
The NBA's independent investigation, conducted by the law firm Wachtell, Lipton, Rosen & Katz, found a "pattern of misconduct and multiple significant rules violations by the Clippers organization, a prior offender of the salary cap circumvention rules." As a result, the league fined the franchise $30 million, suspended Ballmer for one year, and stripped the team of five first-round draft picks.
Additional suspensions were handed down to team executives, including President of business operations Gillian Zucker for one year and president of basketball operations Lawrence Frank for six months. Initially, the Clippers organization issued a statement rejecting the NBA's findings and calling the investigation "heavily biased." However, Ballmer's subsequent statement signaled a shift in the team's approach.
"We are committing to put this chapter behind us," Ballmer's statement continued. "We have communicated to the NBA that we are complying with the penalties assessed by the league, have paid the fine, and are moving forward. While there are still disagreements concerning the findings in the report, this is not where I want to focus.
"Team owners should support, not distract. The challenges ahead of us are significant, but so is our resolve. We will continue to build our team and invest in our community. The confidence of our fans is our priority. With our talented roster, outstanding staff and clear vision, I am certain that we will compete at the highest level and be an organization our fans can be proud of."
Kawhi Leonard was personally fined $700,000 for restitution for improper benefits, and his uncle and former business manager, Dennis Robertson, has been banned by the NBA from all business dealings for five years. In his own statement, Leonard accepted "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."
Federal prosecutors have also opened a criminal investigation into the franchise over the allegations. The Securities and Exchange Commission is also seeking information from Daktronics, a company involved in the construction of the Clippers' new arena, concerning its relationship with Leonard. Several companies, including Daktronics, Aspiration Partners, Boingo Wireless, and Lockton Insurance, were identified as having endorsement deals with Leonard that were central to the NBA's investigation.