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The NBA has penalized the Los Angeles Clippers and Kawhi Leonard for violating the salary cap circumvention rules in the league’s Collective Bargaining Agreement (CBA) with the National Basketball Players Association (NBPA). The determination followed an independent investigation conducted by the law firm Wachtell, Lipton, Rosen & Katz, announced September 2, 2026.
The investigation identified a pattern of misconduct and multiple significant rules violations by the Clippers, who are a prior offender of salary cap circumvention rules. According to a summary report prepared by Wachtell Lipton, the franchise broke the rules by affirmatively initiating off-court income opportunities between Leonard and four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance. The Clippers also facilitated endorsement agreements between those companies and Leonard, induced the companies to enter those agreements by offering them team business, paid personal expenses on behalf of Leonard and his representatives, and failed to report improper solicitations for off-court income opportunities made through Leonard’s then-business manager, Dennis Robertson.
Leonard’s own culpability stems from Robertson’s conduct on his behalf. Robertson pressured the Clippers to assist Leonard in obtaining off-court income opportunities, successfully secured those opportunities, and failed to reimburse the Clippers for personal expense payments.
Penalties Imposed on the Clippers Organization
The NBA’s sanctions against the Clippers organization are extensive:
- Forfeiture of five first-round draft picks, one each in the 2029, 2030, 2031, 2032, and 2033 NBA Drafts
- A $30 million fine
- Owner Steve Ballmer suspended from all league and team activities for one year for knowingly seeking to help Leonard obtain off-court income opportunities, approving a business deal he knew was a precondition for Aspiration to enter into an endorsement agreement with Leonard, and failing to create conditions under which his organization abided by circumvention rules
- President of Business Operations Gillian Zucker suspended without pay for one year for being primarily and directly culpable for the impermissible endorsement arrangements and for providing false and misleading statements to investigators
- President of Basketball Operations Lawrence Frank suspended without pay for six months for his involvement with the impermissible endorsement arrangements and for approving impermissible expenses incurred by Leonard and his family
- The Clippers organization and personnel placed under a compliance and monitoring program overseen by the league office for five years
Individual Sanctions Against Leonard and Robertson
Leonard is required to pay the league $700,000 in connection with his violations. Robertson faces a five-year ban from conducting business or otherwise engaging with NBA teams and their affiliates on behalf of or with respect to any player, employee, or other league or team personnel.
The NBA and NBPA have entered into an agreement confirming these penalties are final and binding on all parties. Wachtell Lipton continues to receive information relevant to the investigation, and the league will consider further action as appropriate.
“The NBA’s collectively bargained system for determining player compensation is a fundamental component of the basketball competition that the league oversees for the benefit of the teams and players and ultimately the fans. I am deeply disappointed by the flagrant violations of our rules and by the Clippers’ institutional and leadership failures that led to this misconduct. The severity of the penalties reflects the seriousness of the violations.” — NBA Commissioner Adam Silver
Read also: Draymond Green Calls for Salary Cap Abolition Amid Kawhi Leonard Clippers Investigation
The scale of these penalties signals the league’s intent to protect the integrity of its compensation system. Follow TipsGG for continued coverage of how these sanctions reshape the Clippers’ roster-building outlook heading into the 2027 and beyond.