Penalties Announced
The NBA handed down a sweeping punishment to the Los Angeles Clippers on Wednesday for violating salary cap circumvention rules. Owner Steve Ballmer was suspended for one year, the team was fined $30 million, and it will forfeit five first-round draft picks, one in each draft from 2029 through 2033. The penalties followed a nearly yearlong investigation led by an outside law firm.[S1]
In addition, two-time NBA Finals MVP Kawhi Leonard was fined $700,000. Lawrence Frank, president of basketball operations, was banned for six months, and Gillian Zucker, team president of business operations, was suspended for one year. The league said it and the players' union agreed to confirm the penalties as final and binding on all parties.[S1]
Clippers' Response
The Clippers rejected the NBA's findings, calling the investigation biased and seeking to justify a predetermined narrative. In a statement, the team said it would fight the penalties through every available avenue and look forward to an ethical and impartial arbitration process. The team had previously maintained its innocence, with Leonard saying in April he expected to be in the clear.[S1]
Ballmer's attorney, David Kelley, wrote to Commissioner Adam Silver, describing the investigation as a witch hunt and the penalties as a gross injustice. Kelley argued that league counsel acknowledged there was no agreement between the Clippers and Aspiration to funnel money to Leonard, and that Ballmer was a victim of fraud, not a participant.[S1]
Investigation Details
The NBA began investigating in September 2025 whether a $28 million endorsement contract between Leonard and Aspiration Fund Adviser LLC broke league rules. Aspiration filed for bankruptcy last year, and its co-founder Joseph Sanberg was sentenced to 14 years in federal prison for defrauding investors and lenders of at least $248 million.[S1]
The league said Ballmer knowingly sought to help Leonard obtain off-court income deals and approved a business deal that was a precondition for Aspiration to enter into an endorsement contract with Leonard. Leonard was found to have violated rules by pressuring the Clippers to assist him in obtaining off-court income opportunities and failing to reimburse payments for personal expenses.[S1]
Leonard's Statement and Future
Leonard accepted responsibility for lapses in judgment by people within his inner circle and regretted the distraction. He said he entered into his contract and agreements in good faith, with no knowledge of any intent to circumvent the salary cap. His trade to the Toronto Raptors has been on hold pending the investigation's outcome, but he expressed focus on returning to Toronto with a clean slate.[S1]
