Berliner Boersenzeitung - NBA hammers Clippers over Leonard salary cap violations

The Clippers, who said they plan to fight the punishments, will forfeit a first-round NBA Draft pick every year 2029-2033 after having been found to have aided Leonard in evading salary cap rules in deals with team corporate sponsors when he signed in 2022.

Clippers owner Steve Ballmer was banned from all league and team activities for one year, president of business operations Gillian Zucker was suspended for a year and president of basketball operations Lawrence Frank was suspended for six months, while Leonard was fined $700,000.

"I'm 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.

"The severity of the penalties reflects the seriousness of the violations."

The Clippers, responding in a statement, said the probe was biased to fit what the team called a "predetermined narrative" and vowed to challenge the penalties.

"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," a club statement said.

The Clippers said feedback it had received directly from the NBA "differs from what it announced today publicly."

"For the past year, we cooperated fully and in good faith and we will now fight just as hard to demonstrate our innocence," the statement said.

"We intend to vigorously challenge these findings and penalties through every avenue available to us and look forward to an ethical and impartial arbitration process."

The Clippers agreed to trade Leonard to Toronto in July but the Raptors said they would await the result of the investigation before finalizing the deal.

"As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate," Leonard said in a statement.

The investigation was into allegations the Clippers compensated Leonard $28 million through an endorsement deal with now-bankrupt Aspiration.

It found what the NBA called "a pattern of misconduct and multiple significant rules violations by the Clippers organization, a prior offender of the salary cap circumvention rules."

Law firm Wachtell, Lipton, Rosen & Katz found the Clippers initiated and facilitated sponsorship income deals between Leonard and four team corporate sponsors -- Aspiration, Boingo Wireless, Daktronics and Lockton Insurance.

The probe found the club induced companies to enter into agreements with Leonard by offering them business, also paid personal expenses for Leonard and his representatives, and failed to report improper solicitations for income opportunities by Leonard's then-business manager, Dennis Robertson.

Leonard, through Robertson, violated salary cap rules by obtaining improper off-court income, pressuring the Clippers to assist him in getting those opportunities and failing to reimburse the Clippers for expenses.

Robertson was banned from engaging with NBA teams on behalf of any player, employee or other NBA or team personnel for five years.

- 'No knowledge' -

Leonard accepted responsibility for actions by his representatives but said he had no clue salary cap violations were involved.

"Integrity and respect for this game are fundamental to who I am. 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," Leonard said in a statement.

"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."

The NBA and the National Basketball Players Association agreed the penalties are final and binding to all parties but the league said it will "consider further action as appropriate."

(T.Burkhard--BBZ)