The NBA has concluded its months-long investigation into the Los Angeles Clippers. Due to serious violations in the signing of Kawhi Leonard, the league is imposing an exceptionally harsh set of penalties on the franchise and several of its most powerful executives.
The Clippers must surrender five first-round draft picks—one each in 2029, 2030, 2031, 2032, and 2033. In addition, the NBA imposed a $30 million fine on the franchise. Leonard himself must pay $700,000 to the league. The 35-year-old was traded in June to his former club, the Toronto Raptors, with whom he had won the championship in 2019.
Team owner Steve Ballmer was also personally penalized. The 70-year-old is suspended from all team and league activities for one year. Gillian Zucker, president of operations, must also sit out for one year without pay. Lawrence Frank, president of basketball operations, was suspended for six months without pay.
The penalties stemmed from violations of rules designed to circumvent the salary cap in connection with Leonard’s signing in 2022. An investigation led by the New York law firm Wachtell Lipton reportedly revealed “a pattern of misconduct and several significant rule violations by the Clippers organization.” The league also noted that the club had previously violated similar regulations.
Leonard’s controversial endorsement deal with Aspiration
According to the investigation report, the NBA considers it proven that the Clippers arranged off-court revenue opportunities for Leonard with four companies that had business ties to the club.
The franchise is alleged to have used its own contracts to persuade the companies to enter into agreements with Leonard and to have covered personal expenses for the player and his representatives. In addition, unauthorized requests for additional sources of income were not reported to the NBA.
At the center of the original allegations was a $28 million endorsement deal that Leonard signed in 2022 with Aspiration, a financial firm that has since gone bankrupt. Aspiration, for its part, had a 23-year, $300 million sponsorship deal with the Clippers.
“Deeply Disappointed”: Silver Settles the Score with the Clippers
Leonard stated through his new advisor, Harrison Gaines, that he takes “full responsibility for misjudgments made by people in my inner circle.” At the same time, he emphasized that he had entered into his contract with the Clippers and the relevant agreements in good faith and had no knowledge of any intended circumvention of the salary cap.
NBA Commissioner Adam Silver sharply criticized the team’s conduct. “I am deeply disappointed by the flagrant violations of our rules and the institutional and leadership failures of the Clippers,” Silver said. The severity of the sanctions reflects the gravity of the violations. According to the league and the players’ union, all penalties are binding.
