Los Angeles Clippers owner Steve Ballmer has been suspended for one year by the NBA following an investigation into salary cap violations involving Kawhi Leonard. The team also received a $30 million fine and was ordered to forfeit five first-round draft picks. President of basketball operations Lawrence Frank was banned for six months, while team president of business operations Gillian Zucker was suspended for one year.
Leonard himself was fined $700,000, according to kark.com. The investigation began after a report by investigative journalist Pablo Torre revealed that Leonard had an endorsement deal with Aspiration Fund Adviser LLC, a company that later filed for bankruptcy, according to a report from CBS Sports. The league said Ballmer was suspended for “knowingly seeking to help Mr. Leonard obtain off-court income opportunities,” among other issues.
Aspiration had raised hundreds of millions of dollars under the guise of sustainability, but it was later revealed that the company was a now-bankrupt entity. Joseph Sanberg, a co-founder of Aspiration, was sentenced to 14 years in prison after pleading guilty to defrauding investors and lenders. Leonard said he entered into the contract in good faith and had no knowledge of any intent to circumvent salary cap rules.
He also stated that he accepted full responsibility for mistakes made by people in his inner circle and expressed regret over the distraction caused to fans and his family. The NBA said that Leonard’s trade to the Toronto Raptors has been delayed pending the outcome of the investigation. Despite the penalties, Leonard will not have his contract voided or face a suspension.
The league also found that the Clippers had facilitated endorsement agreements with four companies: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance. The Clippers were also found to have paid personal expenses for Leonard and his representatives and failed to report improper solicitations for off-court income opportunities. Lawrence Frank was suspended for involvement in the endorsement arrangements and for approving expenses incurred by Leonard and his family, The Boston Globe reported.
Gillian Zucker was banned for being primarily and directly culpable for the illegal endorsement arrangements and for lying to investigators. The Clippers maintained that they had done nothing wrong and rejected the findings of the investigation. The team said it would continue to fight to prove its innocence.
NBA Commissioner Adam Silver said the league was disappointed by the flagrant violations and the failures of leadership within the Clippers organization. Silver emphasized that the collective bargaining system for player compensation is essential to the integrity of the league. The league and players’ union agreed to confirm the penalties as final and binding on all parties involved.
Leonard’s return to the Toronto Raptors has been delayed pending the outcome of the investigation, though both teams have expressed interest in moving forward with the trade. Leonard said he is focused on closing this chapter and moving forward with a clean slate.
IMAGE: kawhi leonard playing for toronto raptors scotiabank arena v charlotte hornets nba. Photo: Chensiyuan / Wikimedia, taken 2019-03-25, CC BY-SA 4.0