The NBA’s nearly year-long investigation into the Los Angeles Clippers has ended with one of the harshest punishments in league history, sending the franchise back to territory last seen during Minnesota’s Joe Smith salary-cap scandal 25 seasons ago.
In the words of Mark Cuban, “Congrats Pablo.“
The League has concluded that the Clippers violated salary-cap circumvention rules by facilitating endorsement deals for Kawhi Leonard with Aspiration, Boingo Wireless, Daktronics and Lockton Insurance, as first
reported by ESPN’s Shams Charania.
The investigation began after reporting by Torre, and the process was conducted by Wachtell, Lipton, Rosen & Katz.
The sanctions immediately reshape the Clippers’ already-long-gone future:
- The Clippers have been fined $30 million, the largest team fine in NBA history.
- Los Angeles is losing its first-round picks in 2029, 2030, 2031, 2032 and 2033.
- The Clippers have been placed under a five-year compliance and monitoring program.
- Owner Steve Ballmer has been suspended from all league and team activities for one year.
- President of business operations Gillian Zucker has been suspended without pay for one year.
- President of basketball operations Lawrence Frank has been suspended without pay for six months.
- Leonard was fined $700,000 for improper benefits.
- Dennis “Uncle Dennis” Robertson has been banned from conducting business with NBA teams for five years, although Kawhi is his lone client.
The scale of the punishment closely mirrors, although it clearly tops it, the NBA’s response to Minnesota in 2000. More than 25 years ago, former NBA commissioner David Stern stripped the Timberwolves of five first-round picks and fined the franchise $3.5 million after determining it had entered into an illegal secret agreement with Smith. Two of Minnesota’s five picks were later returned.
The Clippers’ draft situation is particularly tough. After years of outgoing picks tied to the Paul George trade, the latest penalties leave Los Angeles without one of its own first-round selections until 2034 under the current setup. Sheesh…
The NBA suspended Ballmer for knowingly seeking to help Leonard obtain off-court income opportunities and approving a business arrangement connected to the Aspiration endorsement. Zucker was cited for being directly culpable in the endorsement arrangements and for providing false and misleading statements to investigators, while Frank was disciplined for his involvement and for approving impermissible expenses involving Leonard and his family.
Funnily enough, Leonard’s punishment differed significantly from Smith’s 25 seasons earlier, as Kawhi came out pretty much unscathed. Smith’s contract was voided in 2000, while the NBA decided to leave Leonard’s contract intact and instead ordered him to pay $700,000 over improper benefits. Lots of money to us, pocket money for the Klaw.
Los Angeles “vehemently” rejected the NBA’s findings and said it intends to challenge the ruling through every available avenue. Meanwhile, Kawhi is still on his way to Canada to play basketball north of the border next season.
