NEW YORK — The NBA announced Wednesday that the Los Angeles Clippers will lose five first-round draft picks and pay a $30 million fine for violating the salary cap circumvention rules in its collective bargaining agreement with the National Basketball Players Association. The penalties were released with a summary report from the firm that handled the investigation.
The picks are from the 2029, 2030, 2031, 2032, and 2033 drafts.
Steve Ballmer received a one-year suspension from league and team activities. According to the NBA, Ballmer knowingly sought to help Kawhi Leonard obtain off-court income. The league also said Ballmer approved a business arrangement while knowing it was required for Aspiration Partners to enter an endorsement deal with Leonard. It faulted him as well for failing to create conditions under which the organization followed the circumvention rules.
The NBA suspended president of business operations Gillian Zucker for one year without pay. According to the league, Zucker had primary and direct responsibility for the impermissible endorsement arrangements. The league also said she provided false and misleading statements to investigators.
President of basketball operations Lawrence Frank was suspended for six months without pay. The NBA tied Frank to the arrangements and said he signed off on expenses for Leonard and his family that violated league rules.
The league ordered Leonard to pay $700,000. Its findings say Leonard, through then-business manager Dennis Robertson, pushed the Clippers to help secure off-court income and received that income. The NBA also found that Leonard did not repay personal expenses the Clippers had covered. His contract was left intact, and the league did not suspend him.
Robertson is banned for five years from conducting business or otherwise engaging with NBA teams and their affiliates on behalf of any player, employee, or league or team personnel.
The Clippers organization and its personnel will operate under a compliance and monitoring program run by the league office for five years.
What The Wachtell Lipton Investigation Found
Wachtell, Lipton, Rosen & Katz conducted the investigation and authored the summary report released with the NBA’s announcement Wednesday. The league said investigators uncovered a pattern of misconduct that included multiple significant violations. The Clippers were also identified as a previous circumvention offender.
The league found that the Clippers initiated off-court income opportunities between Leonard and four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance. The team facilitated endorsement agreements between those companies and Leonard, induced the companies to sign by offering them business from the franchise, paid personal expenses for Leonard and his representatives, and failed to report improper solicitations made on Leonard’s behalf through Robertson.
Commissioner Adam Silver said the collectively bargained system for determining player compensation is a fundamental component of the competition the league oversees for teams, players, and 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,” Silver said. “The severity of the penalties reflects the seriousness of the violations.”
An agreement between the NBA and NBPA makes the discipline final and binding. Wachtell Lipton is continuing to receive information connected to the investigation, and the league said it will consider further action as appropriate.
How The Case Reached This Point
Pablo Torre reported on Sept. 3, 2025, that Leonard had signed a four-year, $28 million endorsement deal with Aspiration, a company Ballmer backed with $50 million. Aspiration co-founder Joe Sanberg pleaded guilty in October 2025 to defrauding investors and was sentenced to 14 years in prison. In a letter to the judge sentencing Sanberg, Ballmer’s attorney said Ballmer was defrauded and lost his entire $60 million investment.
Torre reported Aug. 7, with Hunterbrook Media, that Leonard had a second undisclosed sponsorship agreement with Daktronics, the manufacturer that designed the Halo Board inside Intuit Dome.
ESPN reported Aug. 17 that investigators had found no evidence Ballmer funneled money to Leonard through team sponsors. The NBA disputed that report the same day, saying it contained significant inaccuracies and that the investigation was ongoing.
The NBA dealt with a similar circumvention case involving the Minnesota Timberwolves in 2000. Commissioner David Stern voided Joe Smith‘s contract, and Minnesota was fined $3.5 million. The Timberwolves also lost five first-round picks, and owner Glen Taylor and general manager Kevin McHale were suspended. The NBA later gave Minnesota two of the picks back.
Where The Toronto Raptors Trade Stands
A June 30 agreement would send Leonard from the Clippers to the Toronto Raptors for Brandon Ingram, Gradey Dick, unprotected first-round picks in 2031 and 2033, a 2027 first-round pick swap, and second-round picks in 2030 and 2033. The trade was placed on hold July 9 after the NBA informed Toronto that any punishment imposed on Leonard would follow him in the deal.
Leonard appeared in 65 games last season. He averaged 27.9 points, 6.4 rebounds, and 3.6 assists while shooting 50.5% from the field and 38.7% from 3-point range. He placed seventh in MVP voting and was selected to the All-NBA Second Team. The 27.9-point average was the highest of Leonard’s 14 NBA seasons. Six of those seasons came with the Clippers.
Earlier Wednesday, Daktronics acting chief financial officer Howard Atkins said on the company’s fiscal 2027 first-quarter earnings call that the Securities and Exchange Commission is seeking information involving the company and Leonard, as DSJ reported. Atkins also said Daktronics had received information requests from the NBA.
