NBA Suspends Clippers Owner Steve Ballmer, Fines Team $30M in Kawhi Leonard Cap Case
- Los Angeles Clippers owner Steve Ballmer was suspended for one year and the franchise was fined $30 million by the NBA on Wednesday following an investigation into salary...
- According to a 36-page report compiled by the law firm Wachtell, Lipton, Rosen & Katz, the organization engaged in numerous significant rule-breaking incidents and a recurring trend of...
- In addition to Ballmer's suspension, Clippers President of Business Operations Gillian Zucker was suspended without pay for one year after providing false and misleading statements to investigators.
Los Angeles Clippers owner Steve Ballmer was suspended for one year and the franchise was fined $30 million by the NBA on Wednesday following an investigation into salary cap circumvention involving star player Kawhi Leonard, according to reports from Associated Press and NBA.com.
The disciplinary action includes the forfeiture of five first-round draft picks, starting with the 2029 NBA draft. The league also imposed a five-year compliance and monitoring program overseen by the league office for the team and its personnel, as reported by NBA.com.
Investigation Findings and Penalties
According to a 36-page report compiled by the law firm Wachtell, Lipton, Rosen & Katz, the organization engaged in numerous significant rule-breaking incidents and a recurring trend of misconduct. The investigation concluded that Ballmer knowingly sought to help Leonard obtain off-court income opportunities worth millions of dollars and approved business deals that served as preconditions for endorsement agreements.
The inquiry revealed that the organization initiated off-court income opportunities between Leonard and four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance. The franchise secured deals for Leonard by dangling team business opportunities in front of those companies, covered personal expenses for both Leonard and his representatives, and neglected to report unauthorized requests made on the player’s behalf, as highlighted in the report.
Executive and Player Sanctions
In addition to Ballmer’s suspension, Clippers President of Business Operations Gillian Zucker was suspended without pay for one year after providing false and misleading statements to investigators. President of Basketball Operations Lawrence Frank was suspended without pay for six months.
Leonard was ordered to pay the league $700,000 in connection with his own violations, which included pressuring the team to help him obtain off-court income opportunities and failing to reimburse payments for personal expenses. Dennis Robertson, Leonard’s uncle and former business manager, was banned from conducting business or otherwise engaging with league teams and their affiliates for five years.
Team Response and League Statement
In a statement, the Clippers said, We vehemently reject the NBA’s findings,
adding that, We intend to vigorously challenge these findings and penalties through every avenue available to us and look forward to an ethical and impartial arbitration process.
NBA Commissioner Adam Silver emphasized the importance of the league’s financial rules in a statement, noting, The NBA’s collectively bargained system for determining player compensation is a fundamental component of the basketball competition that the league oversees for the benefit of the teams and players and ultimately the fans.
Silver added that he was deeply disappointed by the flagrant violations and institutional failures that led to the misconduct.