By Field Level Media
Sep 14 (Field Level Media) - Los Angeles Clippers owner Steve Ballmer announced on Sunday night that he accepts the NBA's punishment of the franchise for salary-cap circumvention, including his one-year suspension, and has "sincere regrets."
The NBA fined the Clippers $30 million and stripped away five first-round draft picks to punish the franchise for circumventing salary-cap rules involving star forward Kawhi Leonard, who was ordered to pay $700,000, the league announced on Sept.
2.
"This has been a very difficult time for everybody associated with the Clippers, and for that, I have sincere regrets," Ballmer said in a statement posted on the Clippers' X account. "I want to apologize to our fans, employees and my fellow NBA team owners for the distraction and the distress this matter has caused, for which I accept responsibility as principal owner."
This is a change in stance for the franchise, which had repeatedly denied any wrongdoing and issued a statement after the NBA's announcement on Sept. 2 "vehemently rejecting" the league's conclusions and disputing the validity of the investigation.
"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," the Clippers stated on Sept. 2.
Ballmer's statement late Sunday took a conciliatory tone, looking forward to working within the league framework.
"We are committed to put this chapter behind us," Ballmer said in the statement. "We have communicated to the NBA that we are complying to the penalties assessed by the league, have paid the ($30 million) 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," he continued. "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 our clear vision, I'm certain that we will compete at our highest level and be an organization our fans will be proud of."
The NBA's Board of Governors have meetings scheduled in New York on Monday and Tuesday.
The Clippers also are under criminal investigation by federal prosecutors, the New York Times reported last Thursday.
The U.S. Attorney's Office for the Eastern District of New York in Brooklyn is conducting the investigation, which is in early stages, per the report, which cited sources briefed on the matter. It reportedly was unclear whether the investigation would lead to criminal charges or the presentation of evidence to a grand jury.
The NBA's independent, year-long investigation "found a pattern of misconduct and multiple significant rules violations by the Clippers organization, a prior offender of the salary cap circumvention rules," the league said in the Sept. 2 statement.
The heart of the issue was the team introducing Leonard to club sponsors for off-court income opportunities and endorsement agreements, offering the companies business from the team as inducements and paying personal expenses for Leonard and his representatives, among other violations, according to the report commissioned by the NBA.
The businesses identified were Boingo Wireless, Daktronics, Lockton Insurance and Aspiration Partners, the latter a financial technology firm that went bankrupt last year. Aspiration allegedly signed Leonard to a $28 million endorsement deal and had a 23-year, $300 million sponsorship deal with the Clippers.
The league said the Clippers must forfeit a first-round pick in each draft from 2029 to 2033. The NBA suspended Ballmer and two executives -- president of business operations Gillian Zucker (one year without pay) and president of basketball operations Lawrence Frank (six months without pay).
The NBA gave Ballmer a one-year suspension from all league and team activities "for knowingly seeking to help Mr. 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 Mr. Leonard, and for his failure to create conditions under which his organization abided by the NBA's circumvention rules," the league stated.
The NBA said the Clippers failed to report improper solicitations for off- court income made on Leonard's behalf by Dennis Robertson, his uncle and then- business manager. Robertson was banned by the NBA for five years from doing business or engaging with league teams and their affiliates.
The Toronto Raptors, who lost Leonard to the Clippers via free agency after winning the 2019 NBA championship, agreed in principle to a trade on June 30 to bring him back. The deal has yet to be executed as the teams waited for the league's investigation to be completed.
Leonard is a two-time NBA Finals MVP, having won the award in title runs with the San Antonio Spurs (2014) and Toronto (2019).
(--Field Level Media)
