All draft picks forfeited: unprecedented punishment for the Clippers
After a months-long investigation, the NBA has severely punished the Los Angeles Clippers for violating salary cap rules in the Kawhi Leonard affair: the team was fined $30 million, owner Steve Ballmer was suspended for a year, and the player himself was also fined.
The NBA has imposed unprecedented penalties on the Los Angeles Clippers following violations of league rules regarding salary cap circumvention during the signing of Kawhi Leonard in 2022. After a months-long investigation, the league determined that the organization committed a series of significant violations. The punishment includes a $30 million fine, the forfeiture of five first-round draft picks, and lengthy suspensions for senior club officials.
The Clippers will be forced to give up their first-round pick in five consecutive drafts — in 2029, 2030, 2031, 2032, and 2033. Additionally, team owner Steve Ballmer has been banned from all activities related to the league and the team for one year. President of Business Operations Gillian Zucker was suspended without pay for a year, and President of Basketball Operations Lawrence Frank was suspended without pay for six months. Leonard himself was also punished and must pay the league $700,000.
NBA Commissioner Adam Silver stated:
"I am deeply disappointed by the blatant violations of our rules and by the organizational and leadership failure of the Clippers that led to this conduct. The severity of the penalties reflects the severity of the violations."
The investigation dealt with allegations that the Clippers helped Leonard obtain off-court income as part of the move that led to his signing with the team. At the center of the affair was Aspiration, a bankrupt "green" banking company, with which Leonard signed a $28 million sponsorship agreement in 2022. At the same time, the same company had a $300 million, 23-year sponsorship agreement with the Clippers.
The investigation determined that the Clippers violated league rules by initiating and assisting in the creation of dual contracts for Leonard with four companies that did business with the team in order to avoid affecting the club's salary cap. According to the findings, the team assisted in obtaining the sponsorship agreements, encouraged the companies to contract with Leonard, and even covered personal expenses for the player and his representatives. It was also determined that the Clippers did not report to the league improper solicitations for external income made on Leonard's behalf through his then-business manager, Dennis Robertson.
Leonard, who will play next season in Toronto, responded to the penalty:
"I take full responsibility for the lack of judgment by people in my inner circle, and I am sorry for the distraction this situation has caused the fans and my family. I signed my contract with the Clippers, as well as the agreements in question, in good faith, fully committed to fulfilling my obligations and without knowledge of any intention by anyone to circumvent the salary cap."
The Clippers responded with a statement:
"We categorically reject the NBA's conclusions, which are the result of a highly biased investigation designed to justify a predetermined narrative. We intend to vigorously appeal the findings and the penalties through every means available to us, and we look forward to an ethical, fair, and independent arbitration process."
The US sports world is in shock. Andrew Schlecht, a reporter for The Athletic, tweeted that this is a "death sentence for the Clippers," while senior journalist Bill Simmons added: "I'm pretty sure this is the heaviest penalty ever handed down in NBA history."
