Clippers and Ballmer prepare legal challenge to NBA penalties
Clippers and Ballmer plan legal challenge to contest NBA penalties for salary cap violations.
Event / Sports
NBA Clippers Salary Cap Violation
The NBA concluded a year-long investigation into the Los Angeles Clippers' systematic salary cap circumvention scheme involving player Kawhi Leonard. The league imposed penalties including a $30 million fine, forfeiture of five first-round draft picks, suspension of owner Steve Ballmer, and suspensions of team executives. The Clippers announced plans to challenge the penalties through arbitration.
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2026-09-04 to 2026-11-06 · UTC publication dates
Coverage begins 4 Sept, 03:16 UTC
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What happened
NBA fines Clippers $30 million and strips five first-round draft picks for salary cap violations
The NBA fined the Los Angeles Clippers $30 million, stripped the team of five first-round draft picks covering 2029-2033, and suspended owner Steve Ballmer for one year following an investigation into salary cap circumvention involving Kawhi Leonard. The NBA found that the Clippers used phony endorsement deals to funnel money to Leonard in violation of league rules. The investigation involved the law firm Wachtell, Lipton, Rosen & Katz and found a pattern of misconduct involving companies including Boingo Wireless, Daktronics, Lockton Insurance, and Aspiration Partners.
Federal prosecutors open criminal investigation into Clippers salary cap violations
The U.S. Attorney's Office for the Eastern District of New York in Brooklyn opened a criminal investigation into allegations that the Los Angeles Clippers circumvented NBA salary cap rules through secret sponsorship arrangements involving star player Kawhi Leonard. The investigation is in its early stages and prosecutors have issued at least one subpoena. It remains unclear whether the investigation will lead to criminal charges or result in evidence being presented to a grand jury.
Kawhi Leonard trade to Toronto Raptors remains pending
A proposed trade to send Kawhi Leonard from the Los Angeles Clippers to the Toronto Raptors, agreed in principle on June 30, remains unexecuted. The Clippers and Raptors have not moved forward with the trade as the Clippers work through their front office structure following the salary cap violations investigation.
Aspiration Partners signed Kawhi Leonard to $28 million endorsement deal
The financial technology company Aspiration Partners signed Kawhi Leonard to a reported $28 million endorsement deal. Aspiration Partners also held a 23-year, $300 million sponsorship deal with the Clippers. The company later filed for bankruptcy. The NBA investigation concluded this was part of a scheme to provide Leonard with off-court income opportunities disguised as legitimate endorsement deals.
Clippers and Steve Ballmer plan to challenge NBA investigation findings
The Los Angeles Clippers and owner Steve Ballmer issued a statement vehemently rejecting the NBA's findings, stating the investigation was heavily biased and sought to justify a predetermined narrative. The Clippers stated that what the league told them privately differs from what was announced publicly. Ballmer and the Clippers are considering suing the NBA and seeking a court-ordered restraining order.
Kawhi Leonard fined $700,000 and ordered to repay improper benefits
Kawhi Leonard was fined $700,000 and ordered to pay $700,000 in restitution for improper benefits received through the Clippers' salary cap circumvention scheme. Leonard's uncle and former business manager, Dennis Robertson, was banned from the NBA for five years from doing business or engaging with league teams and their affiliates.
Securities and Exchange Commission contacts Daktronics over Leonard endorsement arrangement
The Securities and Exchange Commission contacted Daktronics, a scoreboard company that had one of the endorsement arrangements highlighted in the NBA's investigation into the Clippers and Kawhi Leonard. Daktronics stated it is cooperating with the SEC inquiry. The NBA investigation alleged that the Clippers directed a kickback from a scoreboard contract for Intuit Dome in Inglewood, California to Leonard in an endorsement deal.
$28 million Aspiration endorsement deal ruled circumvention scheme
The NBA investigation determined that a $28 million endorsement agreement between Kawhi Leonard and the now-bankrupt environmental company Aspiration was part of a broader effort involving unauthorized financial benefits that violated league rules governing player compensation.
Clippers plan to challenge NBA penalties through arbitration
The Los Angeles Clippers released a statement saying they vehemently reject the NBA's investigation findings and believe the process was unfair. The organization stated it intends to challenge the penalties through arbitration and explore every legal remedy available to address what owner Steve Ballmer's attorneys called a gross injustice.
Clippers owner Steve Ballmer suspended for one year
Steve Ballmer, owner of the Los Angeles Clippers, was suspended from all NBA and team activities for one year as part of the punishment for salary cap violations involving Kawhi Leonard.
Kawhi Leonard fined $700,000 for salary cap circumvention role
Two-time NBA Finals MVP Kawhi Leonard was fined $700,000 for his role in the salary cap circumvention scheme, though he avoided a suspension. His business manager Dennis Robertson was banned from conducting NBA business for five years.
Aspiration executives initially opposed Leonard endorsement deal
Aspiration co-founder Joe Sanberg pushed for the $28 million endorsement agreement with Kawhi Leonard despite internal Aspiration executives uniformly opposing it. Sanberg told executives that the Clippers were requesting the arrangement and would provide additional business to offset financial impact, making it cash-flow neutral for Aspiration.
NBA fines LA Clippers $30 million for salary cap violations
The NBA announced that the Los Angeles Clippers violated league salary-cap circumvention rules. The investigation by law firm Wachtell, Lipton, Rosen & Katz found a pattern of misconduct surrounding Kawhi Leonard and his off-court income opportunities. The league fined the Clippers $30 million for the violations.
LA Clippers lose five first-round draft picks as penalty
The Los Angeles Clippers were ordered to forfeit five first-round draft picks covering the 2029 through 2033 drafts as punishment for salary cap circumvention violations discovered in the investigation into Kawhi Leonard compensation arrangements.
Clippers had previous salary cap circumvention violation
The Los Angeles Clippers were repeat offenders for salary cap violations. In 2015, the NBA fined the Clippers $250,000 for efforts to facilitate an endorsement agreement between free-agent center DeAndre Jordan and a team sponsor. In 2019, the league also questioned the Clippers about reports that Kawhi Leonard's uncle and business adviser Dennis Robertson was seeking impermissible benefits from teams courting Leonard.
Clippers executives suspended for salary cap violations
Clippers President of Basketball Operations Lawrence Frank received a six-month suspension without pay, and President of Business Operations Gillian Zucker was suspended for one year without pay as penalties for their roles in the salary cap circumvention scheme.
Kawhi Leonard trade to Toronto Raptors expected to proceed
The Los Angeles Clippers trade sending Kawhi Leonard to the Toronto Raptors was on hold pending the NBA investigation's conclusion. With the investigation complete and penalties announced, the trade is now expected to move forward. The Clippers will receive Brandon Ingram, Gradey Dick, and significant draft compensation, though the loss of five additional first-round picks from the penalty drastically changes the organization's long-term outlook.
Multiple companies provided unauthorized endorsements to Kawhi Leonard
The NBA investigation found that Leonard received a total of $18 million from endorsement agreements with three companies—Boingo, Daktronics, and Lockton—arranged by the Clippers. These agreements imposed minimal performance obligations on Leonard relative to the amount paid, were not publicly announced, and involved minimal player activation beyond a single military base visit and signing some autographs.
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2 alternative perspectives
Federal prosecutors launch criminal investigation into Clippers violations
Federal prosecutors launch criminal probe into Clippers violations as SEC examines endorsement deals.
Kawhi Leonard trade to Raptors expected to advance despite violations
Kawhi Leonard's trade to the Raptors moves forward despite salary cap violations.
Aspiration endorsement deal exposed as $28 million salary cap circumvention
A $28 million endorsement deal was ruled an illegal salary cap circumvention scheme for Kawhi Leonard.
NBA imposes sweeping penalties on Clippers for salary cap violations
NBA fines Clippers $30 million, strips five draft picks, and suspends owner for salary cap violations.