The Los Angeles Clippers and Kawhi Leonard conspired to violate the salary cap, the NBA said Wednesday, and the league stripped the team of five first-round picks, fined Leonard $700,000 and suspended billionaire owner Steve Ballmer from league and team activities for a year.
The league said its investigation found the Clippers initiating off-court opportunities for Leonard to earn additional money through four outside companies, and indicated that the penalties, almost all of which concern the Clippers franchise and its executives and staff, won’t be challenged by the players’ association. The NBA and NBPA are in “agreement” that the penalties are “final and binding on all parties.”
The Clippers, which have also been fined $30 million, will forfeit first-round picks in 2029, 2030, 2031, 2032 and 2033.
In a statement, the Clippers say they “vehemently reject” the NBA’s accusations and will pursue avenues to “vigorously challenge the findings.” As discussed in more detail below, the NBA, like other pro leagues, are contractually designed to preempt potential litigation brought by teams. Teams agree through the league constitution that the league and commissioner Adam Silver have final say on punishments. Also, courts are deferential to the operations of private associations so long as they don’t act arbitrarily or capriciously.
