The NBA has issued penalties against the Los Angeles Clippers and Kawhi Leonard for “violating the salary cap circumvention rules” in the league’s Collective Bargaining Agreement with the National Basketball Players Association, the league announced Sept. 2, 2026.
The penalties, which include forfeiting future first-round draft picks, stem from an investigation into whether the Clippers helped Leonard gain outside income as a way to circumvent the NBA salary cap. The independent investigation was conducted by the law firm of Wachtell, Lipton, Rosen & Katz that began last September and now is concluded.
The investigation found Leonard signed a $28 million endorsement contract with Aspiration, a company that promoted itself as a "green" financial
services company, but required little to no actual promotional work or public appearances.
“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,” NBA Commissioner Adam Silver said in a statement Sept. 2. “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 penalties are as follows, according to the NBA:
- The Clippers will forfeit five first-round draft picks, one in each of the 2029, 2030, 2031, 2032, and 2033 NBA drafts.
- The Clippers are fined $30 million.
- Clippers owner Steve Ballmer is suspended from all league and team activities for one year for knowingly seeking to help Leonard obtain off-court income opportunities, for approving a business deal that he knew was a precondition for Aspiration to enter into an endorsement agreement with Leonard, and for his failure to create conditions under which his organization abided by the NBA’s circumvention rules.
- Clippers President of Business Operations Gillian Zucker is suspended without pay for one year for being primarily and directly culpable for the impermissible endorsement arrangements and for providing false and misleading statements to investigators.
- Clippers President of Basketball Operations Lawrence Frank is suspended without pay for six months for his involvement with the impermissible endorsement arrangements and for approving impermissible expenses incurred by Mr. Leonard and his family.
- The Clippers organization and personnel are subject to a compliance and monitoring program overseen by the league office for a period of five years.
- In connection with his violations, Leonard is required to pay the league $700,000.
- Dennis Robertson is banned from conducting business or otherwise engaging with NBA teams and their affiliates on behalf of or with respect to any player, employee, or other league or team personnel for a period of five years. Robertson is Leonard's uncle and former business manager.
Leonard issued a statement Sept. 2 through his agent, Harrison Gaines, on the findings.
“Integrity and respect for this game are fundamental to who I am. I accept 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.
"I entered into my contract with the Clippers as well as the agreements in question in good faith, fully committed to fulfilling my obligations and with no knowledge of any intent on anyone's part to circumvent the salary cap.”
The Clippers traded Leonard, a two-time NBA Finals MVP, to the Toronto Raptors earlier this summer for Brandon Ingram, Gradey Dick, 2031 and 2033 first-round picks, 2030 and 2033 second-round picks and a first-round pick swap in 2027.
The trade was put on hold due to the investigation.
Leonard’s statement concluded, “For 15 years, my priority has been giving everything to my family, the game, and those I share the court with. As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate.”
The NBA and the NBPA agreed with the findings, making them final and binding.
Wachtell Lipton continues to receive information relevant to the investigation, and the league will consider further action as appropriate. The findings are as follows:
- Affirmatively initiating off-court income opportunities between. Leonard and four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance;
- Facilitating endorsement agreements between these companies and Mr. Leonard;
- Inducing the companies to enter into these agreements by offering them business from the team; paying personal expenses on behalf of Leonard and his representatives; and failing to report improper solicitations for off-court income opportunities made on Leonard’s behalf through Robertson.
- Leonard, through the conduct of Robertson on his behalf, violated the circumvention rules by pressuring the Clippers to assist him in obtaining off-court income opportunities, successfully obtaining those opportunities, and failing to reimburse payments by the Clippers for personal expenses.
The investigation started after podcaster Pablo Torre cited internal documents showing Ballmer invested $50 million in Aspiration through his personal LLC in September 2021.
Have opinions about the current state of the Suns? Reach Suns Insider Duane Rankin at dmrankin@gannett.com or contact him at 480-810-5518. Follow him on X, formerly Twitter, at @DuaneRankin.
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This article originally appeared on Arizona Republic: Kawhi Leonard, Clippers penalized by NBA for salary cap end-run
