Steve Ballmer Suspended One Year, Clippers To Lose 5 First-round Picks In Kawhi Leonard Endorsement Scandal
Facing a mountain of evidence, the NBA had to bring the hammer down hard on Clippers owner Steve Ballmer and the Clippers in the salary cap circumvention case involving Kawhi Leonard and former team sponsor Aspiration, among others. If not, 29 other team owners would have gotten the message that the price for circumventing the salary cap was worth it.
Adam Silver has thrown the book at Ballmer and the Clippers. The NBA released its findings and penalties, and it hits the Clippers hard:
• The Clippers forfeit five first-round draft picks (2029, 2030, 2031, 2032, and 2033).
• The Clippers are fined $30 million.
• Owner Steve Ballmer is suspended from "all league and team activities for one year 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."
• Clippers President of Business Operations Gillian Zucker is suspended for one year without pay.
• Clippers President of Basketball Operations Lawrence Frank is suspended without pay for six months.
• Kawhi Leonard must pay the league $700,000.
• Leonard's already-fired business manager, Dennis Robertson (better known as "Uncle Dennis"), is banned from conducting NBA business for five years.
Both the NBA and NBPA have agreed on the details and punishments involving Leonard, which means there is no arbitration case coming — that is only for the players, not the franchise, and the players' union signed off on this (which means, ultimately, that Leonard did).
Leonard does not face a suspension or voiding of his contract, only the fine. That means the trade that would send him to Toronto for Brandon Ingram and Gradey Dick likely goes through in the coming weeks.
"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. "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 report, compiled by the law firm of Wachtell Lipton, found that the Clippers:
• Initiated and helped facilitate endorsements and off-court income opportunities between Mr. Leonard and four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance.
• The Clippers induced "the companies to enter into these agreements by offering them business from the team."
• The Clippers paid "personal expenses on behalf of Leonard and his representatives" and failed "to report improper solicitations for off-court income opportunities made on Mr. Leonard's behalf through his then-business manager, Dennis Robertson."
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