Aspiration separately agreed to a four-year, $28 million endorsement contract with Leonard. The company also had a 23-year sponsorship agreement with the Clippers valued at $300 million.
Investigators concluded that the team offered business to sponsors as an incentive to provide Leonard with endorsement opportunities. The inquiry also found that Los Angeles paid personal expenses for Leonard and his representatives.
The concern was not simply that a highly marketable player earned endorsement money. NBA rules prohibit teams from causing sponsors or other businesses to compensate players beyond their league contracts. Steve Ballmer had previously described that restriction himself, which did not greatly assist his defence.
Why were Steve Ballmer and other executives suspended?
The NBA suspended Clippers owner Steve Ballmer for one year from all league and team activities. It said he knowingly tried to help Leonard obtain outside income, approved a business arrangement that served as a condition for Aspiration’s endorsement deal and failed to ensure that the organisation followed salary cap rules.
Investigators cited contemporaneous notes from Lawrence Frank, the Clippers’ president of basketball operations, in which Ballmer reportedly described team personnel as “collective workers” helping Leonard meet his financial goals.
The league also imposed unpaid suspensions on two senior executives:
- Gillian Zucker, president of business operations, was suspended for one year for her central role in the endorsement arrangements and for allegedly giving investigators false or misleading information.
- Lawrence Frank was suspended for six months for his involvement in the deals and for approving expenses incurred by Leonard and his family.
Wachtell Lipton said it conducted 73 interviews involving 60 people and reviewed more than 200,000 pages of documents. Its report also accused the Clippers of sometimes delaying responses and behaving in an “adversarial or obfuscatory manner.” Apparently, even document production can develop a defensive scheme.
The NBA described Los Angeles as a repeat offender. In 2015, the league fined the Clippers $250,000 for improperly facilitating an endorsement opportunity for DeAndre Jordan. The organisation also received specific training on salary cap circumvention in December 2019.
What penalties did Kawhi Leonard receive?
Leonard was fined $700,000, while his uncle and former business manager, Dennis Robertson, was banned for five years from conducting business with NBA teams or their affiliates. The league found that the Clippers failed to report improper requests for outside income made on Leonard’s behalf by Robertson.
Leonard, now represented by agent Harrison Gaines, denied knowing that anyone intended to evade salary cap rules. The two-time NBA Finals Most Valuable Player said he entered his Clippers contract and the endorsement agreements in good faith.
“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,” Leonard said.
He was represented by National Basketball Players Association counsel during the investigation. The NBA and the union agreed that the penalties were final and binding. The Los Angeles Times reported that player arbitration was available, but the union declined to pursue it.
That decision may limit at least part of the challenge promised by the Clippers. The team insists it cooperated fully and says the league privately communicated something different from its public findings.
“We vehemently reject the NBA’s findings, which are the result of a heavily biased investigation seeking to justify a predetermined narrative rather than facts and evidence,” the franchise said.
Can the Clippers overturn the punishment?
The Clippers say they will contest the findings through every available process and seek what they called an impartial arbitration. Their statement accused the NBA of failing to meet the fairness standard Commissioner Adam Silver established when the inquiry began.
The league’s position is considerably less ambiguous. Silver called the violations “flagrant” and said the severity of the punishment reflected both the misconduct and failures by the organisation’s leadership.
“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.
Wachtell Lipton continues to receive information and may supplement its findings. That leaves open the possibility of additional action, even though the current penalties have been described as final and binding.
The disagreement is broader than the Aspiration arrangement. Investigators identified failures in sponsor procurement, executive oversight, expense approval and internal compliance. The Clippers had training, previous disciplinary history and senior officials who understood the rule. The system still produced several agreements that the league concluded were designed to supplement Leonard’s compensation.
How much will the lost draft picks cost Los Angeles?
The Clippers must surrender one first-round selection in every NBA draft from 2029 through 2033. Those distant picks may look abstract now, but they restrict how the franchise can rebuild, trade for players or recover from an ageing roster later in the decade.
NBC Sports calculated that the Leonard and Paul George era has now cost Los Angeles 10 first-round picks, along with players including Shai Gilgeous-Alexander. The Clippers acquired George from the Oklahoma City Thunder in 2019 as part of the effort to secure Leonard in free agency.
Leonard nevertheless remained productive last season. He averaged 27.9 points, 6.4 rebounds and 3.6 assists across 65 games. Los Angeles finished ninth in the Western Conference and lost its play-in game to the Golden State Warriors.
His wider record includes two championships and two Finals MVP awards, with the San Antonio Spurs in 2014 and Toronto Raptors in 2019. He is also a seven-time All-Star, a two-time Defensive Player of the Year and a seven-time selection to an NBA All-Defensive Team.
The punishment therefore affects more than one endorsement dispute. Los Angeles faces years of reduced draft control after a star-led project that delivered strong individual numbers but no NBA Finals appearance.
Will Leonard’s Toronto Raptors trade proceed?
The Toronto Raptors agreed in principle on June 30 to bring Leonard back after losing him to the Clippers in 2019, shortly after their championship season. The proposed trade remained on hold while the league completed its investigation.
Under the original terms, Los Angeles would receive:
- Forward Brandon Ingram
- Guard Gradey Dick
- Two first-round draft picks
- Two second-round draft picks
- One future pick swap
Leonard’s statement suggested that he expects the move to happen. “As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate,” he said.
As of September 3, however, neither the NBA nor the teams had confirmed completion of the trade. The Associated Press reported that it remained on hold, and the league’s announcement did not explicitly clear Leonard to join Toronto.
The deal could give the Clippers new players and draft assets just as the NBA removes five future first-round selections. For Toronto, it would restore the central figure from its only championship team, although this version arrives with a $700,000 fine and an investigation that may not yet be finished.
