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Clippers punishment explained: $30M fine, picks revoked

ESPN NBA •
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The NBA has released the findings of its nearly yearlong investigation into the LA Clippers and Kawhi Leonard, punishing both for violating salary cap circumvention rules when the team signed Leonard to an extension in 2021. The league released a statement Wednesday outlining that the investigation found "multiple significant rules violations by the Clippers organization."

Punishments include a $30 million fine and suspension for owner Steve Ballmer (one year), plus suspensions for team president of business operations Gillian Zucker (one year without pay) and president of basketball operations Lawrence Frank (six months without pay). The Clippers must also forfeit first-round picks in 2029, 2030, 2031, 2032 and 2033.

A significant part of this case appears to come down to the words "affirmative" and "responsive" as it pertained to how Leonard and the four companies arrived at endorsement deals. The Clippers believe their actions, connecting interested companies to Leonard for possible endorsement deals, constitutes a role as a middleman, which is permitted by league rules. The investigators do not believe this and presented findings that they feel show the team flagrantly and repeatedly broke cap circumvention rules.

This punishment is in line with the penalty David Stern levied on the Minnesota Timberwolves in 2000 for executing an under-the-table deal with Joe Smith, which included five lost first-round picks, a then-record fine of $3.5 million, and owner and executive suspension and lost pay. As for the size of the fine, the league appears to have imposed the maximum allowed fine for cap circumvention, $7.5 million, and imposed it for all four companies it believes the Clippers conspired with to circumvent cap rules, resulting in a compounded fine of $30 million.