NBA Hits Clippers with penalties over Kawhi Leonard Salary Cap Violations
The NBA has handed the LA Clippers one of the most severe punishments in league history after an investigation found the organization violated salary cap circumvention rules involving Kawhi Leonard.
The Clippers must forfeit five first-round draft picks, one each in the 2029, 2030, 2031, 2032, and 2033 NBA Drafts, and pay a $30 million fine.
The NBA’s independent investigation found that the Clippers helped create off-court income opportunities for Leonard through four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance. The league said the organization facilitated endorsement agreements, offered business to the companies to induce those deals, and paid personal expenses for Leonard and his representatives.
Leonard was also penalized and must pay the NBA $700,000. His former business manager, Dennis Robertson, has been banned from conducting business or otherwise engaging with NBA teams and their affiliates on behalf of players or other league personnel for five years.
The punishment also reaches the Clippers’ leadership. Owner Steve Ballmer has been suspended from all league and team activities for one year, while President of Business Operations Gillian Zucker received a one-year suspension without pay. President of Basketball Operations Lawrence Frank was suspended without pay for six months.
The Clippers will also be placed under a league-supervised compliance and monitoring program for five years.
NBA Commissioner Adam Silver said:
“I am deeply disappointed by the flagrant violations of our rules and by the Clippers’ institutional and leadership failures that led to this misconduct. The severity of the penalties reflects the seriousness of the violations.”
The NBA and NBPA have agreed that the penalties are final and binding on all parties.
