Sept 2 (Reuters) – The Los Angeles Clippers will forfeit five first-round draft picks and pay a $30 million fine for violating salary cap circumvention rules involving Kawhi Leonard, the NBA said on Wednesday while also suspending team owner Steve Ballmer.
After a year-long probe, the NBA said in a press release that an independent investigation found a pattern of misconduct and multiple significant rules violations by the Clippers organization.
The league had launched an investigation into the Clippers following media reports that Leonard, a two-time NBA champion, was paid by a now-bankrupt environmental firm that had close ties to Ballmer as a way to circumvent league rules that restrict the total amount a team can spend on its player payroll.
The reports said Leonard had a four-year, $28-million endorsement contract with the firm but the twice NBA champion was alleged to have provided no work as part of the deal.
As part of the penalties announced by the NBA, Ballmer is suspended from all league and team activities for one year “for knowingly seeking to help Leonard obtain off-court income opportunities.”
“I am deeply disappointed by the flagrant violations of our rules and by the Clippers’ institutional and leadership failures that led to this misconduct,” NBA Commissioner Adam Silver said in a statement. “The severity of the penalties reflects the seriousness of the violations.”
According to the NBA, Leonard, through the conduct of his then-business manager Dennis Robertson acting on his behalf, violated the circumvention rules by pressuring the Clippers to assist him in obtaining off-court income opportunities. Leonard is required to pay the league $700,000 in connection with his violations.
The Clippers and Ballmer had denied wrongdoing when the initial allegations surfaced, while Leonard said after the ruling in a statement that he entered the agreements “in good faith” and had no knowledge of any effort to circumvent the salary cap.
Reuters has contacted the Clippers for comment following the ruling.
The Clippers’ President of Business Operations Gillian Zucker was suspended without pay for one year for being primarily culpable for the impermissible endorsement arrangements.
Lawrence Frank, the team’s president of basketball operations, was suspended without pay for six months for his involvement. The Clippers will also be subject to a compliance program overseen by the NBA for a period of five years.
(Reporting by Frank Pingue in TorontoEditing by Toby Davis)
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