NBA Clippers, Leonard Investigation: $30M Fine, Loss Of Five Top Draft Picks

By Barry Janoff

September 2, 2026: The NBA said today that the LA Clippers and Kawhi Leonard have been penalized for violating the salary cap circumvention rules contained in the league’s Collective Bargaining Agreement with the National Basketball Players Assn.

This determination was based upon information developed through an independent year-long investigation conducted by the law firm of Wachtell, Lipton, Rosen & Katz.

The investigation “found a pattern of misconduct and multiple significant rules violations by the Clippers organization, a prior offender of the salary cap circumvention rules.”

 “The NBA’s collectively bargained system for determining player cossmpensation is a fundamental component of the basketball competition that the league oversees for the benefit of the teams and players and ultimately the fans,” NBA commissioner Adam Silver said via the league.

“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.”

Leonard was traded to the Toronto Raptors in late June via a deal that was not — but can now be — finalized due to the NBA's investigation.

NBA has imposed penalties on the team, including the Clippers forfeiting five first-round Draft picks, one in each of the 2029, 2030, 2031, 2032 and 2033 NBA Drafts; fined $30 million; and Clippers owner Steve Ballmer  being suspended from all league and team activities for one year. 

According to the league, as described in a summary report prepared by Wachtell Lipton, the Clippers broke the rules by:

• 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.

Based on this misconduct, the NBA has imposed the following penalties:

• The Clippers forfeit five first-round draft picks, one in each of the 2029, 2030, 2031, 2032, and 2033 NBA Drafts.

• The Clippers are fined $30 million.

• Clippers owner Steve Ballmer is suspended from all league and team activities for one year for knowingly seeking to help Mr. Leonard obtain off-court income opportunities, for approving a business deal that he knew was a precondition for Aspiration to enter into an endorsement agreement with Mr. Leonard, and for his failure to create conditions under which his organization abided by the NBA’s circumvention rules.

• Clippers president of business operations Gillian Zucker is 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.

• Clippers president of basketball operations Lawrence Frank is suspended without pay for six months for his involvement with the impermissible endorsement arrangements and for approving impermissible expenses incurred by Mr. Leonard and his family.

• The Clippers organization and personnel are subject to a compliance and monitoring program overseen by the league office for a period of five years.

• In connection with his violations, Mr. Leonard is required to pay the league $700,000.

• Mr. Robertson is banned 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 for a period of five years.

The NBA and the NBPA said they 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.

Leonard, through his new agent, Harrison Gaines, issued a statement regarding the findings of the NBA’s investigation.

“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.  

“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." 

"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 Clippers said via the team.

"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."




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