The NBA came down hard on the Clippers, owner Steve Ballmer and Kawhi Leonard on Wednesday for circumventing salary-cap rules in the All-Star’s endorsement deals with team sponsors.
The yearlong investigation found a pattern of misconduct and multiple significant violations by the Clippers, a previous offender of the salary-cap circumvention rules, according to the law firm of Wachtell, Lipton, Rosen & Katz.
Based on the findings, the NBA has suspended Ballmer from all league and team activities for one year for knowingly seeking to help Leonard with off-court income opportunities and approving a business deal with Aspiration, a now-defunct sustainable banking and investment company. Ballmer also was cited for his failure to create conditions under which the Clippers abided by the NBA’s circumvention rules.
The team also is fined $30 million, must forfeit five first-round draft picks – one in each of the 2029, 2030, 2031, 2032, and 2033 NBA drafts – and Leonard is required to pay the league $700,000.
The penalties continue as President of Business Operations Gillian Zucker is suspended without pay for one year for being primarily and directly culpable for the endorsement arrangements, and for providing false and misleading statements to investigators.
Lawrence Frank, the president of basketball operations, also is suspended without pay for six months for his involvement with the endorsement arrangements and for approving impermissible expenses incurred by 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.
Lastly, Dennis Robertson, Leonard’s business manager, 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 report, released Wednesday, stated that the Clippers broke the rules by:
• Affirmatively initiating off-court income opportunities between Leonard and four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics and Lockton Insurance;
• Facilitating endorsement agreements between these companies and Mr. Leonard;
• Inducing the companies to enter into these agreements by offering them business from the team;
• Paying personal expenses on behalf of Leonard and his representatives;
• Failing to report improper solicitations for off-court income opportunities made on Leonard’s behalf through Robertson.
Their findings conclude a yearlong investigation sparked by former ESPN reporter Pablo Torre, who alleged in 2025 that the Clippers and Ballmer circumvented salary-cap rules by allowing Leonard to sign a $28 million deal with Aspiration that they knew was in violation of the rules.
Leonard avoided suspension or having his contract voided, which means a trade with the Toronto Raptors is expected to go through. The Clippers traded Leonard to the Raptors for Brandon Ingram, Gradey Dick and a host of future draft picks on June 30, but the Raptors paused the deal nine days later pending the investigation outcome.
More to come on this story.