NBA Suspends Ballmer, Strips Clippers of Five Picks
NBA Suspends Ballmer, Strips Clippers of Five Picks
The News
The NBA suspended Los Angeles Clippers owner Steve Ballmer for one year on Wednesday and hit the franchise with a $30 million fine after a year-long investigation found the team circumvented the league's salary cap by arranging off-court money for star forward Kawhi Leonard.
The Clippers must also forfeit five first-round draft picks — one each in 2029, 2030, 2031, 2032 and 2033.
Leonard was ordered to pay the league $700,000. His uncle and former business representative, Dennis Robertson, was banned by the NBA from all business dealings.
Clippers president of business operations Gillian Zucker and president of basketball operations Lawrence Frank were also suspended, for periods the league did not spell out in its announcement, according to the New York Post.
What the League Found
The NBA said its investigation, summarized in a report prepared by law firm Wachtell Lipton, "found a pattern of misconduct and multiple significant rules violations by the Clippers organization, a prior offender of the salary cap circumvention rules."
On Leonard, the league said he "violated the circumvention rules by pressuring the Clippers to assist him in obtaining off-court income opportunities, successfully obtaining those opportunities, and failing to reimburse payments by the Clippers for personal expenses" — conduct carried out through Robertson on his behalf.
Ballmer, the league said, "knowingly" sought to help Leonard land off-court income and approved a business deal "that he knew was a precondition for Aspiration to enter into an endorsement agreement with Mr. Leonard," and failed "to create conditions under which his organization abided by the NBA's circumvention rules."
At the center of the case is a $28 million, four-year endorsement contract between Leonard and the company Aspiration. Leonard received a $1.75 million payment nine days after a Clippers minority owner invested in Aspiration, and the contract included a clause letting Leonard's company decline any work while still collecting the money — so long as he remained a Clipper.
Timeline
The NBA opens an investigation into the Leonard-Clippers endorsement arrangement, following reporting by journalist Pablo Torre.
Daktronics acting chief financial officer Howard Atkins confirms that both the Securities and Exchange Commission and the NBA have requested information from the company about its dealings with Leonard. Daktronics designed the video board inside the Clippers' Intuit Dome.
The NBA announces its findings and penalties: Ballmer suspended one year, a $30 million fine, five first-round picks forfeited, $700,000 from Leonard, a business ban for Robertson, and suspensions for Zucker and Frank.
Reactions
The Clippers have denied any wrongdoing in the Aspiration matter, according to Heavy.
The league's own statement was blunt, describing the franchise as "a prior offender of the salary cap circumvention rules" and laying the failure at the owner's feet.
What's Next
The SEC inquiry into Daktronics is separate from the league's discipline and remains open; it is not clear where that examination leads.
A pending trade sending Leonard to the Toronto Raptors had been frozen while the NBA investigation played out. The Raptors must agree to assume penalty risk before that deal can close.
Ballmer's one-year suspension takes him out of Clippers operations, and the forfeited picks stretch the punishment across five drafts through 2033.
More
Ballmer, the former Microsoft chief executive, bought the Clippers in 2014 and opened the Intuit Dome in Inglewood, California. The $30 million fine is a rounding error against his fortune — the draft picks and the year on the sideline are the sanctions with teeth.
Poll question for readers: Was a one-year suspension enough punishment for Steve Ballmer?
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