Clippers Hit With Historic Penalty in Kawhi Leonard Salary Cap Scandal

Clippers Hit With Historic Penalty in Kawhi Leonard Salary Cap Scandal AP Photo/Jenny Kane

A year of denials came crashing down on Wednesday when the NBA confirmed what a bombshell report first suggested. The Los Angeles Clippers broke league rules to keep two time Finals MVP Kawhi Leonard happy, and the punishment is severe.

The Kawhi Leonard Penalty by the Numbers

An independent investigation by law firm Wachtell, Lipton, Rosen and Katz found the Clippers ran off the books endorsement deals for Leonard through team sponsors. The league responded by stripping five first round picks, covering 2029 through 2033.

It is the harshest cap circumvention penalty since 2000, when the Minnesota Timberwolves lost multiple first rounders over a similar scheme built around Joe Smith. The Clippers already owe other picks from the Paul George and James Harden trades, so the franchise controls just four selections through 2034, a fact first laid out in last year’s bombshell report that started this whole saga.

Fallout for Ballmer and the Franchise

Owner Steve Ballmer was fined 30 million dollars and barred from all team and league activities for a full year. Investigators say he personally helped arrange income opportunities for Leonard and failed to properly supervise his front office staff. That finding directly contradicts Ballmer’s earlier claim to reporters that he had no knowledge of any side dealings.

Leonard’s uncle and longtime adviser, Dennis Robertson, was banned from dealing with NBA teams for five years. Leonard himself was fined 700,000 dollars but avoided suspension, clearing the way for his long rumored trade back to Toronto.

Commissioner Adam Silver said the penalties reflect how serious the violations were. Leonard, through his new agent, accepted responsibility for lapses by people in his inner circle. The Clippers called the investigation biased and vowed to fight the findings in court.

Since the NBA’s statement offers no internal appeal process, that fight is headed for the legal system. The outcome could decide whether Los Angeles gets any of its stripped picks back, and how long it takes Ballmer to repair his name around the league.