On Wednesday, the NBA announced that the LA Clippers and Kawhi Leonard were penalized for violating the salary cap circumvention rules in the league’s Collective Bargaining Agreement.
The Clippers organization, Leonard, and four other individuals were disciplined: owner Steve Ballmer; Leonard’s uncle and former business adviser, Dennis Robertson; president of basketball operations Lawrence Frank; and president of business operations Gillian Zucker.
The penalties followed an investigation conducted by the law firm Wachtell, Lipton, Rosen & Katz.
As a result of the investigation’s findings, the NBA imposed the following penalties:
-The Clippers shall forfeit five first-round draft picks, one in each NBA draft from 2029 through 2033, and be fined $30 million.
-Ballmer is suspended from all league and team activities for one year. According to the NBA, he knowingly helped Leonard obtain off-court income opportunities, approved a business deal that was a precondition for Aspiration’s endorsement agreement with Leonard, and failed to ensure that the organization followed the league’s circumvention rules.
-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.
-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.
-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.
Bottom Line:
The Clippers bent over backward to bring Leonard to Los Angeles, including trading Shai Gilgeous-Alexander and a massive collection of draft picks to acquire Paul George. That deal helped persuade Leonard to sign with the organization.
Additionally, it appears Leonard got off a little easy. He will pay his $700,000 penalty and is expected to move on to the Raptors, who have agreed to acquire him from the Clippers. The Clippers could decide not to complete the trade, but that wouldn’t make sense because they would receive two first-round picks they can definitely use.
Over the years, the Clippers have endured devastating injuries, ownership controversies, costly personnel decisions, and memorable playoff collapses.
No matter how you view it, one thing is true: the Clippers are cursed!
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