The NBA fined the Clippers $30 million and punished Kawhi Leonard in a cap-circumvention case.
Why it matters: This is a major sports-business and governance case involving a marquee franchise, a star player and the league's cap rules. The penalties could shape how teams structure compensation around the NBA's labor system.
- The NBA announced the penalties on 2026-09-02 after an independent investigation by Wachtell Lipton, Rosen & Katz.
- The league fined the Clippers $30 million and forced them to forfeit five first-round picks from 2029 through 2033.
- Steve Ballmer received a one-year suspension, while Gillian Zucker was suspended for one year without pay and Lawrence Frank for six months without pay.
- The NBA said the Clippers helped create off-court income opportunities for Leonard through four companies doing business with the team: Aspiration Partners, Boingo Wireless, Daktronics and Lockton Insurance.
The NBA said the Clippers violated salary-cap circumvention rules under the league's collective bargaining agreement after a nearly yearlong investigation led by Wachtell Lipton, Rosen & Katz.
In its findings, the league said the Clippers initiated off-court income opportunities for Kawhi Leonard, facilitated endorsement agreements, induced companies by offering team business, paid personal expenses for Leonard and his representatives, and failed to report improper solicitation made through Dennis Robertson.
The NBA also said Leonard, through Robertson, violated circumvention rules by pressuring the Clippers to help him secure off-court income opportunities and by failing to reimburse team-paid personal expenses. Leonard was fined $700,000, and Robertson was banned from engaging with NBA teams and affiliates on behalf of players or personnel for five years.
The league said its penalties are final and binding under an agreement with the NBPA, though it may consider further action as appropriate. The Clippers said they "vehemently reject" the findings and plan to challenge the penalties through available avenues, according to AP.
AP reported that the NBA opened the investigation in September 2025 after reporting by Pablo Torre tied Leonard to a $28 million endorsement contract with Aspiration Fund Adviser LLC. AP also reported that Aspiration later filed for bankruptcy and that co-founder Joseph Sanberg was sentenced in 2026 after pleading guilty in an unrelated federal fraud case.
The Clippers had previously been fined in 2015 for violating NBA rules against offering unauthorized business or investment opportunities to free agents during recruitment.
By the numbers
- $30 million - Fine the NBA imposed on the Clippers
- 5 - First-round picks forfeited, spanning 2029 to 2033
- 1 year - Suspension handed to owner Steve Ballmer
Yes, but: The Clippers are disputing the NBA's findings and say they will challenge the penalties, even as the league says the sanctions are final and binding.
What's next: The Clippers are expected to pursue available avenues to challenge the penalties.