Just one year after the NBA started its investigation into the LA Clippers circumventing the salary cap through Kawhi Leonard's contract, the league has completed its investigation and has handed the Clippers a historic and hefty punishment.
Journalist Pablo Torre first broke the news about the salary cap circumvention executed by the Clippers last year, before the league started its investigation.
The investigation centred on the team adding extra outside compensation, specifically a reported $28 million endorsement and stock arrangement with the then-partner company Aspiration, allowing customers to fund global-tree initiatives.
Torre released a series of podcasts highlighting evidence of how the Clippers had broken NBA rules.
The NBA announced its ruling on September 2, 2026, USA time, in a statement.
The league confirmed they will strip the Clippers of 5 first-round picks from 2029 all the way through to 2033, imposing a $30 million fine on Steve Ballmer, the owner of the Clippers, as well as handing suspensions to Ballmer, Lawrence Frank, the President of Basketball Operations, and Gillian Zucker, the President of Business Operations for the Clippers.
On top of that, the Clippers will also have to be overseen in a compliance and monitoring program for five years.
Kawhi Leonard's contract was not voided, instead been fined just $700,000.
Leonard's business manager and uncle, Dennis Robertson, is banned from engaging in and conducting business with any NBA organisation and its affiliates, including players, employees, or team personnel, for five years.
In the NBA's statement, the investigation, which was independently led by the law firm of Wachtell, Lipton, Rosen & Katz, found that the Clippers had broken the rules.
A summary was provided by Wachtell Lipton.
- Affirmatively initiating off-court income opportunities between Mr. Leonard and four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance;
- Facilitating endorsement agreements between these companies and Mr. Leonard;
- Inducing the companies to enter into these agreements by offering them business from the team;
- Paying personal expenses on behalf of Mr. Leonard and his representatives; and
- Failing to report improper solicitations for off-court income opportunities made on Mr. Leonard's behalf through his then-business manager, Dennis Robertson.
Adam Silver spoke passionately in a statement about the salary circumvention.
"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," he said.
"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."
Kawhi Leonard had joined the Clippers in the 2019 off-season after the organisation made one of the biggest trades in NBA history, receiving Paul George for Shai Gilgeous-Alexander, Danilo Gallinari, the No.12 pick in the 2022 Draft, which became Jalen Williams, the No.15 pick in 2025, which became Thomas Sorber, No.12 in 2026 (Aday Mara) and No.44 in 2026 (Brooks Barnhizer).
The Clippers released a statement on what the NBA found.
"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," the organisation said.
"What the league told us privately differs from what it announced today publicly, and they have not held themselves close to the standard Commissioner Silver set at the start of this investigation to ensure its fairness and accuracy.
"For the past year, we cooperated fully and in good faith, and we will now fight just as hard to demonstrate our innocence. 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."
Kawhi was not made aware of the salary cap circumvention and the arrangements made with his business manager at the time.
Leonard agreed to receiving his punishment under the NBA's collective bargaining agreement and released a statement through his new agent, Harrison Gaines.
"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," he said.
"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.
"For 15 years, my priority has been giving everything to my family, the game, and those I share the court with. As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate."
There is no formal appeal or arbitration process the Clippers can start to challenge the punishment. The only way they can fight is by going to court, with the NBA's rulings final.
The Kawhi Leonard trade conducted between the Clippers and the Toronto Raptors in the off-season is expected to be finalised.
On June 30, the two sides agreed to a trade sending Leonard to the Raptors in exchange for Brandon Ingram, Gradey Dick, 2 first-round picks in 2031 and 2033, and a 2027 first-round swap.
For the Clippers, this means that they have limited assets and will be banking on their most recent pick, Keaton Wagler, from the 2026 draft to become a superstar.
The total cost of Kawhi Leonard signing with the Clippers was 10 first-round picks and 2 first-round swaps.
Leonard averaged 47 games in his seven seasons with the organisation.
