The NBA announced Wednesday that the LA Clippers and Kawhi Leonard violated the league’s salary-cap circumvention rules, resulting in sweeping penalties that include five forfeited first-round picks, a $30 million fine and major suspensions within the organization.
The ruling followed an independent investigation by Wachtell, Lipton, Rosen & Katz, which the NBA said uncovered a “pattern of misconduct and multiple significant rules violations” involving off-court income opportunities arranged for Leonard.
According to the league, the Clippers initiated and facilitated business opportunities between Leonard and four companies that did business with the team: Aspiration Partners, Boingo Wireless, Daktronics and Lockton Insurance.
The NBA said the Clippers induced those companies to enter endorsement agreements with Leonard by offering them team business, while also paying personal expenses for Leonard and his representatives.
Leonard was found to have violated the circumvention rules through actions taken on his behalf by then-business manager Dennis Robertson. The league said Robertson pressured the Clippers to help secure off-court income opportunities for Leonard, while Leonard also failed to reimburse personal expenses paid by the organization.
The penalties are substantial. The Clippers will forfeit first-round picks in the 2029, 2030, 2031, 2032 and 2033 NBA Drafts and pay a $30 million fine.
Owner Steve Ballmer has been suspended from all league and team activities for one year. The NBA said Ballmer knowingly sought to help Leonard obtain off-court income and approved a business agreement that was a precondition for Aspiration entering an endorsement deal with Leonard.
President of Business Operations Gillian Zucker was suspended without pay for one year after the league found her primarily responsible for the impermissible endorsement arrangements and said she provided false and misleading statements to investigators.
President of Basketball Operations Lawrence Frank received a six-month unpaid suspension for his involvement in the endorsement arrangements and approval of impermissible expenses involving Leonard and his family.
Leonard must also pay the league $700,000, while Robertson has been banned for five years from conducting business with NBA teams and affiliates on behalf of players or other league personnel.
The Clippers will additionally operate under a five-year league compliance and monitoring program.
“The severity of the penalties reflects the seriousness of the violations,” NBA commissioner Adam Silver said, adding that the league’s collectively bargained compensation system is a fundamental part of NBA competition.
The ruling lands during a major organizational transition for the Clippers. After finishing 42-40 and ninth in the Western Conference last season, Los Angeles traded Leonard to the Toronto Raptors in the offseason.
Leonard had averaged 27.9 points, 6.4 rebounds and 3.6 assists in 65 games in 2025-26, earning All-NBA Second Team honors and finishing seventh in MVP voting.
The NBA said its agreement with the NBPA makes the announced penalties final and binding, although Wachtell Lipton continues to receive information related to the investigation and further league action remains possible.
