The NBA handed down historic penalties on Wednesday, suspending Los Angeles Clippers owner Steve Ballmer for one year, docking the franchise five first-round draft picks from 2029 through 2033, and issuing a $30 million fine following an eleven-month salary cap circumvention investigation.
The league’s investigation, which concluded Wednesday, September 2, 2026, determined that the Clippers systematically circumvented league rules by facilitating off-court endorsement deals and paying personal expenses to secure star forward Kawhi Leonard. According to the league’s official findings, the franchise initiated endorsement opportunities with four corporate partners for Leonard while offering those companies team business in return.
Steve Ballmer Suspended and Clippers Fined $30 Million
The penalties represent one of the largest disciplinary actions in NBA history. In addition to the team’s $30 million fine, owner Steve Ballmer received a one-year suspension from all league and team activities for knowingly assisting Leonard with off-court income opportunities, including approving a business arrangement with the sustainable banking firm Aspiration.
Investigators from the New York-based law firm Wachtell, Lipton, Rosen & Katz found that the organization initiated deals with four distinct corporate entities: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance. The National Basketball Association also suspended President of Business Operations Gillian Zucker without pay for one year and President of Basketball Operations Lawrence Frank without pay for six months.
Kawhi Leonard Fined $700,000 as Toronto Raptors Trade Awaits Finalization
While Leonard avoided a player suspension or having his contract voided, the seven-time All-Star was ordered to pay a $700,000 fine to the league. Leonard’s former business manager and uncle, Dennis Robertson, received a five-year ban from conducting business with NBA teams on behalf of any player.
The conclusion of the inquiry clears the way for a pending trade sending Leonard to the Toronto Raptors.
“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. I entered into my contract with the Clippers as well as the agreements in question in good faith, fully committed to fulfilling my obligations and with no knowledge of any intent on anyone’s part to circumvent the salary cap.”
Kawhi Leonard, via statement released through his agent
Draft Capital Stripped Across Five Years
The severity of the draft forfeiture leaves the franchise without a natural first-round selection for half a decade. The Clippers will forfeit five first-round picks covering the 2029, 2030, 2031, 2032, and 2033 drafts. Furthermore, the organization and its personnel will be subjected to a five-year compliance and monitoring program overseen directly by the league office.
NBA Commissioner Adam Silver emphasized the foundational importance of the league’s financial regulations in a public statement accompanying the ruling.
“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. I am deeply disappointed by the flagrant violations of our rules and by the Clippers’ institutional and leadership failures that led to this misconduct. The severity of the penalties reflects the seriousness of the violations.”
Adam Silver, NBA Commissioner
Clippers Vow to Challenge Penalties
Despite the league and the National Basketball Players Association entering into an agreement confirming the penalties are final and binding, the Clippers released a scathing response stating that they intend to fight the decision.
“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. What the league told us privately differs from what it announced today publicly, and they have not held themselves close to the standard Commissioner Silver set at the start of this investigation to ensure its fairness and accuracy.”
Los Angeles Clippers, official franchise statement
