news-engine

The NBA announced its findings from its investigation into allegations that the Clippers violated league rules to circumvent the salary cap in 2021 on Wednesday. The results of the probe proved costly for Los Angeles. The league found that the Clippers ran afoul of the league's rules, using a sustainability company called Aspiration to funnel an additional $28 million into Leonard's coffers. The punishment doled out to the offenders was the most severe in league history. With that, here's what you need to know about how the league condemned those deemed to be part of the Aspiration scheme with Leonard. MORE: Kawhi Leonard trade grades Clippers-Kawhi Leonard investigation punishment The NBA announced that law firm Wachtell, Lipton, Rosen & Katz had found the Clippers and Leonard breached the CBA's salary cap circumvention rules. “The NBA’s collectively bargained system for determining player compensation is a fundamental component of the basketball competition that the league oversees for the benefit of the teams and players and ultimately the fans," said commissioner Adam Silver in a statement. "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.” Investigators "found a pattern of misconduct and multiple rules violations" by Los Angeles brass, according to the NBA's statement. For their violations, the Clippers, Leonard and his associates were roundly punished. The penalties are as follows: - Clippers are stripped of five first-round picks, spanning the 2029, 2030, 2031, 2032 and 2033 Drafts - 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 Leonard obtain off-court income opportunities", "approving a deal that served as a precondition for Aspiration to enter into an endorsement agreement with Leonard" and failing to steers his franchise towards abiding by the league's circumvention rules. - Clippers president of business operations Gillian Zucker is suspended one year without pay 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 suspended six months without pay "for his involvement with the impermissible endorsement arrangements and for approving impermissible expenses incurred by Mr. Leonard and his family." - Clippers organization and personnel are required to enroll in a compliance and monitoring program overseen by NBA's league office for five years. - Leonard is required to pay the league $700,000 in restitution - Leonard's agent, Dennis Robertson, is banned five years 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." Leonard avoided suspension for his part in the ploy. He'll be allowed to play for the Raptors as soon as the 2026-27 seasons starts. According to the NBA's press release, Wachtell Lipton is continuing to gather information on the case. The league announced it will seek further punishment if it deems appropriate based on the results of Wachtell Lipton's probe. Which draft picks will the Clippers lose? Los Angeles was stripped of five first round picks for its actions. The Clippers will be without their first rounder in the 2027, 2028, 2029, 2030 and 2031 Drafts. During those years, there will be just 29 first round picks instead of the customary 30, meaning one player from each year will be unable to collect a first-round selection — and the multi-year contract that comes with it. That punishment has precedent. The Timberwolves were initially docked five first rounders after being found to have circumvented salary cap rules to sign Joe Smith in 2000. The league eventually returned two of the selections. In the NBA's statement announcing its discipline, it confirmed that the league and player union entered into an agreement ensuring the penalties are "final and binding." Barring something unforeseen, it seems that Los Angeles will be left without its own first-rounder until the 2032 season.