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The NBA fines Clippers decision includes a $30 million penalty and the loss of five first-round draft picks.
The NBA announced the punishment Tuesday after an independent investigation into the LA Clippers and Kawhi Leonard.
According to the league, the investigation found violations of its salary cap circumvention rules.
Law firm Wachtell, Lipton, Rosen & Katz conducted the investigation.
NBA Fines Clippers $30 Million
The Clippers must pay a $30 million fine under the NBA’s ruling.
In addition, the team will forfeit five first-round draft picks.
Those picks cover the 2029, 2030, 2031, 2032 and 2033 NBA Drafts.
The league said the penalties reflect the seriousness of the Clippers’ conduct.
The organization must also enter a five-year compliance and monitoring program overseen by the NBA.
Kawhi Leonard Faces a $700,000 Penalty
Leonard also received a financial penalty.
The NBA ordered the Clippers star to pay the league $700,000.
According to the investigation, Leonard violated the league’s circumvention rules through actions involving his former business manager, Dennis Robertson.
The NBA said Leonard pressured the Clippers to help him secure off-court income opportunities.
The league also said he failed to reimburse personal expenses that the team paid on his behalf.
Four Companies Appeared in the Investigation
The investigation focused on relationships between Leonard and four companies that did business with the Clippers.
The companies were Aspiration Partners, Boingo Wireless, Daktronics and Lockton Insurance.
According to the NBA, the Clippers helped create endorsement opportunities between Leonard and the companies.
The league also said the team encouraged the companies to enter those agreements by offering them business.
Furthermore, the Clippers allegedly paid personal expenses for Leonard and his representatives.
The organization also failed to report improper requests for off-court income opportunities made through Robertson.
Steve Ballmer Receives a One-Year Suspension
Clippers owner Steve Ballmer will also face a major penalty.
The NBA suspended Ballmer from all league and team activities for one year.
According to the league, Ballmer knowingly sought to help Leonard secure off-court income opportunities.
The NBA also said Ballmer approved a business deal that it considered a condition for Aspiration to enter an endorsement agreement with Leonard.
In addition, the league cited Ballmer’s failure to create conditions that ensured his organization followed NBA rules.
Gillian Zucker and Lawrence Frank Suspended
Two Clippers executives also received suspensions.
Gillian Zucker, the team’s president of business operations, received a one-year unpaid suspension.
The NBA said Zucker played a primary role in the improper endorsement arrangements.
The league also said she provided false and misleading statements to investigators.
Meanwhile, Lawrence Frank, the Clippers’ president of basketball operations, received a six-month unpaid suspension.
The NBA said Frank participated in the endorsement arrangements.
It also said he approved impermissible expenses involving Leonard and his family.
Dennis Robertson Gets a Five-Year Ban
Dennis Robertson also faces a lengthy restriction.
The NBA banned Robertson from conducting business with NBA teams and their affiliates for five years.
The ban applies to work involving players, employees and other league or team personnel.
Robertson’s involvement in the off-court income arrangements formed part of the league’s findings.
NBA Calls Clippers Violations Serious
NBA Commissioner Adam Silver criticized the conduct uncovered by the investigation.
Silver said the league’s system for determining player compensation remains a fundamental part of NBA competition.
He also said he was deeply disappointed by the violations and the organizational failures that led to them.
According to Silver, the penalties reflect the seriousness of the findings.
NBA Penalties Are Final and Binding
The NBA and the National Basketball Players Association agreed that the penalties are final and binding on all parties.
However, the league has not completely closed the matter.
Wachtell Lipton continues to receive information connected to the investigation.
As a result, the NBA could consider additional action if new information warrants it.
The ruling leaves the Clippers facing major financial, organizational and draft consequences for years to come.
Source: NBA, Reuters
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