The NBA’s independent investigation, which lasted a year, found a pattern of misconduct by the Clippers organization, a prior offender of salary cap rules. The league confirmed the penalties are final and binding, agreed upon by both the NBA and the National Basketball Players Association (NBPA).
Inside The Clippers Salary Cap Circumvention
The core of the violation involved the Clippers introducing Leonard to club sponsors for off-court income opportunities. The team allegedly offered business to these companies as inducements and paid personal expenses for Leonard and his representatives. The businesses identified in the probe included Boingo Wireless, Daktronics, Lockton Insurance, and Aspiration Partners.
Aspiration, a financial technology firm that went bankrupt last year, allegedly signed Leonard to a $28 million endorsement deal while holding a 23-year, $300 million sponsorship agreement with the Clippers. The NBA also cited the team for failing to report improper solicitations made on Leonard’s behalf by Dennis Robertson, his uncle and then-business manager. Robertson has been banned from associating with NBA teams for five years.
Executives And Owner Face Suspension
Steve Ballmer was suspended for one year from all league and team activities. The NBA stated Ballmer knowingly sought to help Leonard obtain off-court income and failed to create a culture of compliance within his organization. Gillian Zucker, the team president of business operations, received a one-year suspension without pay for her direct role in the endorsement arrangements and for providing false statements to investigators.
Lawrence Frank, the president of basketball operations, was suspended for six months without pay for his involvement in the impermissible arrangements and for approving improper expenses incurred by Leonard and his family. The Clippers issued a fiery statement rejecting the NBA’s conclusions, calling the investigation biased and promising to fight the penalties in arbitration.
Leonard, 35, also issued a statement through his new agent, Harrison Gaines. The two-time NBA Finals MVP claimed he had no knowledge of any intent to circumvent the salary cap. “I accept full responsibility for lapses in judgment by people within my inner circle and regret the distraction this situation has caused the fans and my family,” Leonard said.
What Happens Next
The Toronto Raptors, who lost Leonard to the Clippers in 2019 free agency after winning the championship, agreed in principle to a Toronto Raptors trade on June 30 to bring him back. The deal has been on hold pending the investigation’s completion. The original trade framework would send Brandon Ingram, Gradey Dick, two first-round picks, two second-round picks, and one pick swap to Los Angeles.
The league has not yet indicated if Leonard is cleared to join the Raptors. Leonard, who averaged 27.9 points, 6.4 rebounds, and 3.6 assists in 65 games last season, expressed his desire to close this chapter. “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.
Commissioner Adam Silver expressed deep disappointment in the violations, stating the severity of the penalties reflects the seriousness of the misconduct. The law firm of Wachtell, Lipton, Rosen & Katz continues to receive information, leaving the door open for further action. The Clippers will attempt to challenge the ruling through arbitration, setting up a potential legal battle between the franchise and the league office.
— James Okafor, sports desk, AXO News