The Los Angeles Clippers are facing the music.
After a lengthy investigation, the NBA announced Wednesday that the Clippers and star player Kawhi Leonard have violated salary cap circumvention rules, now resulting in significant punishments for the franchise.
The NBA is fining the Clippers $30 million and stripping them of five first-round draft picks spanning from 2029-33.
Additionally, Leonard must pay a $700,000 fine, and Clippers owner Steve Ballmer will be suspended from all NBA and team activities for one year. Two other Clippers executives will be suspended without pay for an extended period as well.
The law firm of Wachtell, Lipton, Rosen & Katz conducted the investigation into Leonard and the Clippers, finding that team leadership initiated “off-court income opportunities” between Leonard and “four companies doing business with the team.”
“The investigation found a pattern of misconduct and multiple significant rules violations by the Clippers organization, a prior offender of the salary cap circumvention rules,” the NBA said in a statement.
According to ESPN, the investigation was launched following ”allegations that the Clippers compensated Leonard through a $28 million endorsement deal that he signed in 2022 with the now-bankrupt green banking company Aspiration, which also had a 23-year, $300 million endorsement deal with the Clippers."
“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.”
Leonard was traded to the Toronto Raptors in June, but the NBA chose to put the deal on hold until the Clippers investigation was complete.
Considering Leonard won’t be suspended and his contract wasn’t voided, it appears he will soon be officially headed to Toronto.
