Balmer banned for year; NBA crushes Clippers

NBA issues a hefty fine to the Clippers for salary cap circumvention

The NBA announced today that the LA Clippers and Kawhi Leonard have been penalized for violating the salary cap circumvention rules contained in the league’s Collective Bargaining Agreement (CBA) with the National Basketball Players Association (NBPA).

Based on this misconduct, the NBA has imposed the following penalties:

• The Clippers shall forfeit five first-round draft picks, one in each of the 2029, 2030, 2031, 2032, and 2033 NBA Drafts.
  
• The Clippers are fined $30 million.
  
• Clippers owner Steve Ballmer is suspended from all league and team activities for one year for knowingly seeking to help Mr. Leonard obtain off-court income opportunities, for approving a business deal that he knew was a precondition for Aspiration to enter into an endorsement agreement with Mr. Leonard, and for his failure to create conditions under which his organization abided by the NBA’s circumvention rules.
  
• Clippers President of Business Operations Gillian Zucker is suspended without pay for one year for being primarily and directly culpable for the impermissible endorsement arrangements and for providing false and misleading statements to investigators.
  
• Clippers President of Basketball Operations Lawrence Frank is suspended without pay for six months for his involvement with the impermissible endorsement arrangements and for approving impermissible expenses incurred by Mr. Leonard and his family.
  
• The Clippers organization and personnel are subject to a compliance and monitoring program overseen by the league office for a period of five years.
  
• In connection with his violations, Mr. Leonard is required to pay the league $700,000.
  
• Mr. Robertson is banned from conducting business or otherwise engaging with NBA teams and their affiliates on behalf of or with respect to any player, employee, or other league or team personnel for a period of five years.

The NBA and the NBPA have entered into an agreement confirming these penalties are final and binding on all parties.  Wachtell Lipton continues to receive information relevant to the investigation, and the league will consider further action as appropriate.

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