The NBA has handed the Los Angeles Clippers one of the harshest punishments in league history after concluding that the organization violated salary-cap circumvention rules involving Kawhi Leonard.
Following a nearly yearlong independent investigation, the NBA announced Wednesday that the Clippers will be fined $30 million and stripped of five first-round draft picks, one in every draft from 2029 through 2033. Owner Steve Ballmer has also been suspended from all NBA and Clippers activities for one year.
Leonard was also found to have violated the league’s circumvention rules. However, the NBA did not suspend him or void his contract. Instead, the seven-time All-Star was ordered to pay $700,000.
NBA Investigation Finds Multiple Clippers Violations
The investigation was conducted by the law firm Wachtell, Lipton, Rosen & Katz after questions emerged in September 2025 over Leonard’s off-court financial arrangements.
The controversy initially centered around a four-year, $28 million endorsement agreement between Leonard and Aspiration Fund Adviser LLC, a company that was also connected financially to the Clippers and Ballmer. Aspiration had previously entered into a 23-year, $300 million sponsorship agreement with the Clippers.
The NBA ultimately determined that the violations extended beyond Aspiration.
Investigators found that the Clippers helped Leonard obtain off-court income opportunities involving Aspiration Partners, Boingo Wireless, Daktronics and Lockton Insurance, all companies that conducted business with the franchise.
According to the league, the Clippers introduced Leonard to sponsors, offered or provided team business as an incentive for companies to enter endorsement arrangements with him and paid personal expenses for Leonard and his representatives.
The NBA specifically determined that Ballmer knowingly attempted to help Leonard obtain off-court income opportunities. Investigators also concluded that he approved a business arrangement he knew was a condition for Aspiration entering into an endorsement agreement with Leonard.
Commissioner Adam Silver described the violations as serious failures of the league’s collectively bargained compensation system and said the severity of the sanctions reflected the magnitude of the misconduct uncovered during the investigation.
Steve Ballmer and Clippers Executives Suspended
Ballmer is not the only senior Clippers figure facing punishment.
Gillian Zucker, the team’s president of business operations, has been suspended without pay for one year. The NBA determined that Zucker was directly involved with the improper endorsement arrangements and provided false or misleading information during the investigation.
President of basketball operations Lawrence Frank has been suspended without pay for six months. Investigators found that Frank was involved with the endorsement arrangements and approved improper personal expenses involving Leonard and his family.
The Clippers will also operate under an NBA compliance and monitoring program for the next five years.
Leonard’s uncle and former business manager, Dennis Robertson, received another significant sanction.
Robertson has been banned from conducting business with NBA teams and their affiliates for five years. The investigation found that he pressured the Clippers to assist Leonard in obtaining off-court income opportunities.
Leonard Avoids Suspension and Contract Termination
Despite being found in violation of the circumvention rules, Leonard avoided the most significant potential consequences for his playing career.
The NBA did not suspend Leonard, and his contract was not voided.
Leonard accepted responsibility for lapses in judgment involving people within his inner circle while maintaining that he entered his Clippers contract and the endorsement agreements in good faith and did not know of an attempt to circumvent the salary cap.
The $700,000 penalty therefore represents the extent of Leonard’s direct financial punishment announced by the league.
He is also expected to receive the full $50.3 million owed under his contract for the 2026-27 season.
Clippers Vow to Fight NBA Punishment
The Clippers strongly dispute the NBA’s conclusions.
The organization said the investigation was biased and maintained that information communicated privately by the league differed from the findings eventually announced publicly.
The Clippers intend to challenge the findings and penalties through the available process.
The NBA and National Basketball Players Association, however, have agreed that the penalties involving Leonard are final and binding.
The league also said investigators continue to receive information, leaving open the possibility of additional action if further evidence emerges.
Kawhi Leonard’s Raptors Trade Can Move Forward
The conclusion of the investigation also removes a major obstacle surrounding Leonard’s future.
The Clippers and Toronto Raptors agreed to a trade on June 30 that would send Leonard back to the franchise he led to the 2019 NBA championship.
Toronto agreed to send Brandon Ingram, Gradey Dick, two first-round picks, two second-round picks and a pick swap to Los Angeles. The transaction was subsequently placed on hold while the NBA completed its investigation.
With Leonard avoiding a suspension and the league choosing not to void his contract, there is now a full expectation that the trade will be completed, according to ESPN’s Shams Charania.
Leonard averaged 27.9 points, 6.4 rebounds and 3.6 assists in 65 games for the Clippers last season.
His Clippers tenure is consequently moving toward an extraordinary conclusion. Leonard is expected to return to Toronto, while Los Angeles faces a $30 million fine, five lost first-round picks and major leadership suspensions following the NBA’s findings.
