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Justice Department prosecutors have opened a criminal investigation into revelations the Clippers helped arrange secret sponsorship contracts for the star player Kawhi Leonard that circumvented the salary cap.
Shams Charania has posted the following:
BREAKING: The NBA has ruled on the Los Angeles Clippers in for salary cap circumvention investigations on Kawhi Leonard after yearlong probe -- stripping the franchise of 5 first-round picks, issuing a $30 million fine to owner Steve Ballmer and suspensions for Ballmer, Lawrence Frank and Gillian Zucker, sources tell ESPN.
Kawhi Leonard will have to pay $700,000 in restitution for improper benefits by the Clippers for his uncle and former business rep, Dennis Robertson. No contract void or suspension for Leonard. And Robertson -- who was fired by Leonard in June -- is being banned by the NBA from all business dealings.
Link to the story:
Follow up:
Per NBA: The Clippers shall forfeit five first-round draft picks, one in each of the 2029, 2030, 2031, 2032, and 2033 NBA Drafts.
Clippers owner Steve Ballmer is suspended from all league and team activities for one year for knowingly seeking to help Mr. Leonard obtain off-court income opportunities, for approving a business deal that he knew was a precondition for Aspiration to enter into an endorsement agreement with Mr. Leonard, and for his failure to create conditions under which his organization abided by the NBA’s circumvention rules.
Clippers President of Business Operations Gillian Zucker is suspended without pay for one year 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 is suspended without pay for six months for his involvement with the impermissible endorsement arrangements and for approving impermissible expenses incurred by Mr. Leonard and his family.
The Clippers organization and personnel are subject to a compliance and monitoring program overseen by the league office for a period of five years.
Source:
League observers are wondering aloud if the Clippers are holding off on the trade or even “considering something even more drastic” to spite Kawhi Leonard for accepting the league’s punishment rather than pursuing an appeal
If true, it's very stupid on LA's part but very believable that they would be this level of petty. This is the franchise that just let Bradley Beal of all people wear Chris Paul's number and didn't even let him ride out his final season with them. Ironically, that trade saw CP3 become a Raptor ever so briefly.
This is also ignoring that the Raptors pausing the trade potentially spared the Clippers losing another 2 additional picks should the Kawhi trade go through without alterations.
