The NBA came down hard on the Los Angeles Clippers, stripping the team of five first-round draft picks, fining it $30 million and suspending owner Steve Ballmer for a year over salary cap circumvention tied to Kawhi Leonard.
After a yearlong probe, the NBA said in a statement Wednesday that an independent investigation found a pattern of misconduct and multiple significant rule violations by the Clippers organization.
The league launched the investigation following media reports that Leonard, a two-time NBA champion, was paid by a now-bankrupt environmental firm with close ties to Ballmer as a way to circumvent league rules limiting the amount a team can spend on player payroll.
The reports said Leonard had a four-year, $28 million endorsement contract with the firm but allegedly performed no work under the deal.
As part of the penalties announced by the NBA, Ballmer was suspended from all league and team activities for one year "for knowingly seeking to help Leonard obtain off-court income opportunities."
"I am deeply disappointed by the flagrant violations of our rules and by the Clippers' institutional and leadership failures that led to this misconduct," NBA Commissioner Adam Silver said in a statement. "The severity of the penalties reflects the seriousness of the violations."
In a statement, the Clippers strongly rejected the NBA's findings, calling them the result of a "biased" investigation seeking to justify a predetermined narrative rather than facts and evidence.
"What the league told us privately differs from what it announced today publicly, and they have not held themselves close to the standard Commissioner Silver set at the start of this investigation to ensure its fairness and accuracy," the Clippers said.
"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."
According to the NBA, Leonard violated the circumvention rules through the conduct of his then-business manager Dennis Robertson, who acted on his behalf and pressured the Clippers to help him obtain off-court income opportunities. Leonard must pay the league $700,000 in connection with the violations.
During the investigation, the Toronto Raptors paused their planned trade for Leonard after the NBA told the organization it would assume the risk of any potential outcome affecting the player, who led Toronto to a championship in 2019 before leaving for the Clippers.
Leonard, in a separate statement Wednesday, accepted full responsibility for what he called lapses in judgment by people within his inner circle. He said he regretted the distraction the situation caused his fans and family and looked forward to returning to the Raptors.
"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," Leonard said.
"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 team will forfeit its first-round picks in the 2029, 2030, 2031, 2032 and 2033 NBA drafts.
Clippers President of Business Operations Gillian Zucker was suspended without pay for one year for being "primarily and directly culpable for the impermissible endorsement arrangements," the NBA said.
Lawrence Frank, the team's president of basketball operations, was suspended without pay for six months for his involvement. The Clippers will also be subject to an NBA-monitored compliance program for five years. (Reuters)
