Adam Silver delivered the sanctions on Wednesday. The financial penalty is the largest ever imposed on a franchise, and the draft-pick forfeitures match the record set 26 years ago against the Minnesota Timberwolves.
The league’s official statement traced the scheme to “off-court income opportunities” set up between Leonard and four Clippers business partners: Aspiration Partners, Boingo Wireless, Daktronics and Lockton Insurance. Investigators from law firm Wachtell, Lipton, Rosen & Katz concluded the club induced those companies to hire Leonard by dangling team business, and in some cases paid personal expenses for the player and his representatives.
Ballmer sidelined for 12 months
The most striking sanction lands on the owner himself. Ballmer is barred for a full year from any league or team activity, and the NBA said he had knowingly sought off-court opportunities for Leonard.
Two other executives were pulled with him. Gillian Zucker, president of business operations, was handed a one-year unpaid suspension for what the league called “primary culpability” in the endorsement arrangements and for providing false statements to investigators. Lawrence Frank, president of basketball operations, received a six-month unpaid ban for approving improper expenses tied to the deals.
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Dennis Robertson, Leonard’s uncle and former business manager, was banned for five years from doing business with any NBA team.
$700,000 for Leonard, $28m from Aspiration
Leonard himself was ordered to pay $700,000. He denied any wrongdoing in a written statement.
“I entered into my contract with the Clippers as well as the agreements in question in good faith, fully committed to fulfilling my obligations and with no knowledge of any intent on anyone’s part to circumvent the salary cap.”
The trigger for the investigation was a September 2025 report by journalist Pablo Torre, which laid out a $28 million endorsement contract between Leonard and Aspiration Fund Adviser LLC. Aspiration has since filed for bankruptcy, and its co-founder Joseph Sanberg was sentenced to 14 years in federal prison after pleading guilty to defrauding investors and lenders of at least $248 million.
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Clippers vow to appeal
The Clippers said they vehemently reject the findings, describing the investigation as “heavily biased” with a “predetermined narrative,” and promised to challenge the ruling through every avenue available.
Ballmer’s own legal team went further. His attorney David Kelley called the process a “witch hunt” and the sanctions a “gross injustice,” arguing that the league had not shown any actual agreement to funnel money to Leonard existed between the Clippers and Aspiration.
Silver framed it in institutional terms.
“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 team must also submit to a five-year compliance and monitoring program.
An echo of the Joe Smith case
The last comparable sanction landed in November 2000, when arbitrator Kenneth Dam upheld a $3.5 million fine and the loss of five first-round picks for the Minnesota Timberwolves over a secret multi-year contract with Joe Smith. Two of those picks were later returned. In dollar terms, the fine handed to the Clippers is nearly nine times larger.
Leonard expected to return to Toronto
Leonard is now expected to sign with the Toronto Raptors, the franchise where he won the 2019 NBA championship.
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