Clippers Lose 5 First-Round Picks, Ballmer Suspended In NBA Salary Cap Scandal

LOS ANGELES, CA — The NBA hit the Los Angeles Clippers with sweeping penalties Wednesday, including the loss of five first-round draft picks and a $30 million fine, after an investigation found the organization violated league rules by helping star Kawhi Leonard secure outside income opportunities.

Clippers owner Steve Ballmer was suspended from all league and team activities for one year, while President of Business Operations Gillian Zucker was suspended without pay for one year and President of Basketball Operations Lawrence Frank was suspended without pay for six months, the NBA announced.

Leonard was ordered to pay the league $700,000.

The penalties follow an independent investigation conducted by the law firm Wachtell, Lipton, Rosen & Katz into possible violations of the NBA's salary cap circumvention rules, according to the league.

According to the NBA, investigators found the Clippers initiated and facilitated endorsement opportunities between Leonard and four companies that did business with the team: Aspiration Partners, Boingo Wireless, Daktronics and Lockton Insurance.

The league said the Clippers encouraged the companies to enter agreements with Leonard by offering them business from the team and also paid personal expenses for Leonard and his representatives.

Leonard, acting through then-business manager Dennis Robertson, pressured the Clippers to help him obtain outside income and failed to reimburse the team for personal expenses, according to the NBA.

Robertson was banned for five years from conducting business with NBA teams or their affiliates on behalf of players, employees or other league and team personnel.

Ballmer was suspended for knowingly trying to help Leonard obtain outside income opportunities and approving a business arrangement that the NBA said was a condition for Aspiration to enter an endorsement deal with Leonard.

Zucker was found primarily responsible for the improper endorsement arrangements and provided false or misleading statements to investigators, according to the league. Frank's suspension stems from his involvement in the endorsement arrangements and his approval of expenses involving Leonard and his family.

The Clippers will forfeit their first-round picks in each NBA draft from 2029 through 2033. The organization also will be subject to league compliance monitoring for five years.

The Clippers had said multiple times that they had done nothing wrong and expected to be exonerated.

In a statement issued through his new agent, Harrison Gaines, Leonard said: “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."

“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,” the statement continued.

NBA Commissioner Adam Silver called the violations flagrant and said the severity of the punishment reflected both the misconduct and failures within the Clippers organization.

"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," Silver said.

The NBA and National Basketball Players Association agreed that the penalties are final and binding, according to the league.

Wachtell Lipton continues to receive information related to the investigation, and the NBA said additional action could be taken if warranted.

Material from the Associated Press was used in this report.