NBA fines Clippers $30M, strips five draft picks over Leonard

The NBA announced Tuesday that the LA Clippers will forfeit five first-round draft picks and pay a $30 million fine for violating salary cap circumvention rules involving player Kawhi Leonard.

The penalties follow an independent investigation by law firm Wachtell, Lipton, Rosen & Katz, which found the Clippers organization broke league rules by initiating off-court income opportunities between Leonard and four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance.

The investigation determined the team facilitated endorsement agreements between these companies and Leonard, induced the companies to enter into the agreements by offering them team business, and paid personal expenses on behalf of Leonard and his representatives. The Clippers also failed to report improper solicitations for off-court income opportunities made through Leonard’s then-business manager, Dennis Robertson.

Leonard violated circumvention rules through Robertson’s conduct by pressuring the Clippers to assist him in obtaining off-court income opportunities and failing to reimburse payments for personal expenses.

The Clippers will lose first-round picks in the 2029, 2030, 2031, 2032, and 2033 NBA Drafts. Owner Steve Ballmer faces a one-year suspension from all league and team activities for knowingly seeking to help Leonard obtain off-court income opportunities and approving a business deal that was a precondition for an Aspiration endorsement agreement.

Clippers President of Business Operations Gillian Zucker receives a one-year suspension without pay for being primarily responsible for the impermissible endorsement arrangements and providing false statements to investigators. President of Basketball Operations Lawrence Frank will serve a six-month suspension without pay for his involvement with the arrangements and approving impermissible expenses.

Leonard must pay the league $700,000. Robertson is banned from conducting business with NBA teams and their affiliates for five years. The Clippers organization will be subject to a compliance and monitoring program overseen by the league office for five years.

"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. "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."

The NBA and the National Basketball Players Association entered into an agreement confirming the penalties are final and binding on all parties.