The NBA penalized the LA Clippers and Kawhi Leonard on Sept. 2, 2026, forfeiting five first-round draft picks, issuing a $30 million fine to owner Steve Ballmer, suspending multiple executives, and fining Leonard $700,000 for salary cap circumvention.
The Los Angeles Clippers face disciplinary action from the NBA following an independent investigation into salary cap circumvention involving star player Kawhi Leonard. NBA Commissioner Adam Silver announced the sanctions, which strip the franchise of five first-round draft picks spanning from 2029 through 2033. The league also imposed a $30 million fine on team owner Steve Ballmer and suspended him from all league and team activities for one year.
Executive Suspensions and Wachtell Lipton Investigation Findings
The penalties stem from an inquiry conducted by the law firm Wachtell, Lipton, Rosen & Katz. Investigators uncovered a pattern of misconduct and multiple significant rules violations by the Clippers organization, a prior offender of league circumvention rules. According to the league summary report, the franchise affirmatively initiated impermissible off-court income opportunities for Leonard through his then-business manager, Dennis Robertson.
The fallout extends deep into the front office. Clippers President of Business Operations Gillian Zucker received a one-year suspension without pay for being primarily and directly culpable for the endorsement arrangements and for providing false and misleading statements to investigators. President of Basketball Operations Lawrence Frank was suspended without pay for six months for his involvement in the arrangements and for approving impermissible expenses incurred by Leonard and his family. Additionally, Robertson has been banned from conducting business or engaging with NBA teams on behalf of any player or league personnel for five years.
Kawhi Leonard Faces Financial Restitution and Denies Wrongdoing
Leonard was hit with a $700,000 financial penalty. The league determined that the forward, acting through Robertson, violated circumvention rules by pressuring the franchise to assist him in securing off-court income opportunities while failing to reimburse payments made by the Clippers for personal expenses. The investigation initially focused on whether a $28 million endorsement contract between Leonard and Aspiration Fund Adviser LLC violated league rules, following reports by journalist Pablo Torre. Aspiration filed for bankruptcy last year, and its co-founder Joseph Sanberg was sentenced to 14 years in federal prison after pleading guilty to defrauding investors and lenders of at least $248 million.
Speaking through his new agent, Harrison Gaines, Leonard acknowledged accepting full responsibility for lapses in judgment within his inner circle while maintaining his personal innocence regarding cap circumvention.
The Clippers Vow to Challenge Penalties Through Arbitration
The Clippers organization issued a sharp rebuttal following the announcement, stating they intend to fight the rulings. The franchise maintained that the investigation was flawed from its inception.
Despite the team’s pledge to vigorously challenge these findings, the organization and its personnel will operate under a five-year compliance and monitoring program overseen directly by the league office.
Impact on the Pending Toronto Raptors Trade
The severe penalties arrive while Leonard’s career in Los Angeles is already drawing to a close. Leonard previously agreed to a trade sending him to the Toronto Raptors in exchange for Brandon Ingram, Gradey Dick, and draft compensation—a transaction that remained on hold pending the conclusion of the league’s investigation. Leonard averaged a career-high 27.9 points, 6.4 rebounds, 3.6 assists, and 1.9 steals across 65 games last season, shooting 50.5% from the field and 38.7% from beyond the arc.
“As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate.”
Kawhi Leonard, via Chicago Sun-Times
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