The NBA has suspended Los Angeles Clippers owner Steve Ballmer for one year and fined the team a record $100 million for violating league rules regarding salary cap circumvention. The penalties stem from an 11-month investigation into allegations that Ballmer funneled money to star player Kawhi Leonard through team sponsors. Specifically, the league found that the Clippers failed to supervise employees who facilitated endorsement deals for Leonard with companies like Aspiration, Daktronics, and Boingo Wireless, creating a conflict of interest.
The investigation, led by the law firm Wachtell, Lipton, Rosen & Katz, found no direct evidence that Ballmer personally funneled money to Leonard. However, the NBA concluded that the Clippers' introduction of Leonard to team sponsors, particularly Aspiration, constituted a violation. Aspiration, a green banking company that later filed for bankruptcy, signed a $300 million deal with the Clippers for the Intuit Dome's founding partnership and subsequently inked a $28 million endorsement deal with Leonard. Ballmer had also invested $60 million into Aspiration through his personal LLC, which he reportedly lost entirely.
While the NBA and Ballmer's legal team, led by David N. Kelley, engaged in "spirited" negotiations, Ballmer reportedly insisted he would not accept a finding of intentional salary cap circumvention. The one-year suspension means Ballmer cannot attend NBA games, participate in team operations, or represent the Clippers publicly. The record fine and suspension highlight the league's firm stance against actions that could undermine the integrity of the salary cap system, despite the absence of a "murder charge" for direct funneling of funds. The players' union had also been involved in discussions to ensure Leonard would not face a voided contract or significant personal penalties, though he may have to pay restitution for improper benefits received.
