The NBA announced on Wednesday, September 2, 2026, that it has suspended Los Angeles Clippers owner Steve Ballmer for one year and fined the franchise $30 million for violating salary cap circumvention rules. The league also ordered the team to forfeit five first-round draft picks and imposed a $700,000 penalty on Kawhi Leonard following an independent investigation into undisclosed endorsement deals and off-court income opportunities.
The investigation, conducted by the law firm Wachtell, Lipton, Rosen and Katz, followed a 2025 report by the "Pablo Torre Finds Out" podcast regarding an endorsement deal between Leonard and the fintech company Aspiration. Investigators conducted 73 interviews with 60 people to determine if the Clippers facilitated business agreements that bypassed league rules governing player compensation.
According to the NBA's findings, the Clippers induced four companies—Aspiration, Boingo Wireless, Daktronics, and Lockton Insurance—to provide endorsement deals to Leonard by offering those companies business from the team. The league also stated the team paid personal expenses for Leonard and his representatives and failed to report solicitations for off-court income made by Leonard's uncle, Dennis Robertson. Robertson has been banned from conducting business with NBA teams for five years.
In addition to Ballmer's suspension, the NBA suspended president of basketball operations Lawrence Frank for six months and president of business operations Gillian Zucker for one year. The Clippers issued a statement "vehemently" rejecting the findings, characterizing the investigation as biased and based on a "predetermined narrative." The team stated it intends to challenge the penalties through arbitration. Leonard, who was traded to the Toronto Raptors in July, said in a statement that he accepts responsibility for "lapses in judgment by people within my inner circle."
The scale of the sanctions is significant for the team's long-term operations. The loss of five first-round draft picks limits the franchise’s ability to build its roster. While owner Steve Ballmer is the wealthiest owner in North American sports, his one-year removal from all league and team activities creates a leadership vacuum at the top of the organization.
The day-to-day impact will be felt by the Clippers' front office, as both Lawrence Frank and Gillian Zucker must vacate their roles for six months and one year, respectively. The league moved to enforce rules against using third-party business partners to supplement player pay outside the salary cap. The next step in the process will be the arbitration sought by the Clippers.