NBA fines Clippers US$30m after probe

The NBA on Wednesday came down hard on the Los Angeles Clippers, stripping the team of five first-round draft picks, imposing a US$30 million fine and suspending owner Steve Ballmer for a year over salary cap circumvention tied to Kawhi Leonard.

After a year-long probe, the NBA said in a statement that an independent investigation found a pattern of misconduct and multiple significant rules violations by the Clippers organization.

The league had launched an investigation into the Clippers following media reports that Leonard, a two-time NBA champion, was paid by a now-bankrupt environmental firm that had close ties to former Microsoft CEO Ballmer as a way to circumvent league rules that restrict the total amount a team can spend on its player payroll.

Leonard had a four-year, US$28-million endorsement contract with the firm, but the twice NBA champion was alleged to have provided no work as part of the deal, the reports said.

As part of the penalties announced by the NBA, Ballmer is 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.”

The Clippers said in a statement that they “vehemently reject” 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 in a statement.

“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,” it said.

The NBA said that Leonard, through the conduct of his then-business manager Dennis Robertson acting on his behalf, violated the circumvention rules by pressuring the Clippers to assist him in obtaining off-court income opportunities. Two-time NBA Finals Most Valuable Player Leonard is required to pay the league US$700,000 in connection with his violations.

During the investigation, the Toronto Raptors put their planned trade for Leonard on pause as the NBA told them that they would assume the risk of any potential outcome of the investigation affecting the player who led them to a championship in 2019 before leaving for the Clippers.

Leonard, in a separate statement on Wednesday, said he accepted full responsibility for what he called lapses in judgement by people within his inner circle, adding that he regretted the distraction the situation had caused his fans and family and that he 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,” he said.

The Clippers would forfeit first-round picks in each of 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 would also be subject to a compliance program overseen by the NBA for a period of five years.

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