NBA rules on Clippers, Kawhi Leonard salary cap circumvention investigation

LOS ANGELES - The NBA has announced a decision one year after a report alleged salary cap circumvention against the Los Angeles Clippers involving superstar Kawhi Leonard.

Punishments announced

What we know:

On Wednesday, the NBA stripped the Clippers of five first-round draft picks – for the years 2029-2033 – issued owner Steve Ballmer a $30 million fine and Leonard has been ordered to pay $700,000 in restitution for improper benefits. 

In addition, Ballmer, along with Clippers president of basketball operations, Lawrence Frank, as well as the team's president of business operations, Gillian Zucker, have been suspended. 

Ballmer is suspended for a year from all league and team activities, Zucker is suspended for a year without pay, while Frank is suspended without pay for six months.

Why were Ballmer, Zucker and Frank suspended? 

• Steve Ballmer: Suspended 1 year for helping Kawhi Leonard secure off-court income, approving a linked business deal, and failing to enforce NBA cap rules.
• Gillian Zucker: Suspended 1 year (without pay) for leading the illegal endorsement arrangements and lying to investigators.
• Lawrence Frank: Suspended 6 months (without pay) for involvement in the endorsement scheme and approving improper family expenses.

"The Clippers organization and personnel are subject to a compliance and monitoring program overseen by the league office for a period of five years," league officials wrote. 

The backstory:

In September 2025, Pablo Torre published an explosive report alleging Clippers owner Steve Ballmer attempted to evade the salary cap by having Leonard sign an alleged fraudulent $28 million endorsement deal with Aspiration Partners Inc.

Torre alleged the two-time NBA Finals MVP signed the endorsement deal with no obligations to perform work—subsequently labeled a "no-show job"—allowing Leonard to make more money under the table.

Subsequent reports alleged Leonard also held a sponsorship with Daktronics, the company that manufactured the scoreboard at Intuit Dome, and was a private investor in Rhode Island FC.

Ballmer invested $60 million into the company, and both sides repeatedly denied any wrongdoing.

Kawhi Leonard, NBA Commissioner, Clippers issue statements

What they're saying:

Leonard's agent, Harrison Gaines, issued a statement on his client's behalf after the ruling.

"Integrity and respect for this game are fundamental to who I am. I accept full responsibility for lapses in judgment by people within my inner circle and regret the distraction this situation has caused the fans and my family.

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.

For 15 years, my priority has been giving everything to my family, the game, and those I share the court with. As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate."

"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.  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," NBA Commissioner Adam Silver said in a statement. 

Clippers push back

The Clippers issued a statement, saying they reject the investigation's findings.

"We vehemently reject the NBA's findings, which are the result of a heavily biased investigation seeking to justify a predetermined narrative rather than facts and evidence. What the league told us privately differs from what it announced today publicly, and they have not held themselves close to the standard Commissioner Silver set at the start of this investigation to ensure it’s fairness and accuracy. For the past year, we cooperated fully and in good faith and we will now fight just as hard to demonstrate our innocence. We intend to vigorously challenge these findings and penalties through every avenue available to us and look forward to an ethical and impartial arbitration process."

The Toronto Raptors have yet to issue a statement. However, the trade is expected to go through. 

The ‘Uncle Dennis’ connection

The Athletic published an in-depth report in late September 2025 regarding Dennis Robertson, Leonard’s uncle, who was frequently mentioned throughout the investigation.

Robertson, who took on a prominent role in Leonard’s life after his father was murdered in 2008, was accused of requesting additional perks for his nephew.

Before Leonard signed with the Clippers after winning his second Finals MVP with the Toronto Raptors, his camp entertained other teams, including the Lakers.

During a meeting with the Lakers, Robertson reportedly asked for benefits beyond a maximum contract, including a private plane, a house, and guaranteed off-court earnings. The team denied the requests.

Sources also indicated that Robertson made similar requests during discussions with the Raptors and San Antonio Spurs.

"With my dad passing away, there aren’t too many men in the family, and he’s a great guy to just talk to that has been through my experiences at my age," Leonard told the San Antonio Express-News in 2014. "He’s just been through life already; good guy to talk to."

Robertson is not a registered agent. 

After 14 seasons in the league, Leonard hired Harrison Gaines of SLASH Sports in July 2026. 

On Wednesday, it was announced Robertson was banned by the NBA from all business dealings. 

Dig deeper:

Aspiration filed for bankruptcy in March 2025. In June 2026, Aspiration co-founder Joseph Sanberg was sentenced to 14 years in prison for what federal officials described as a $248 million scheme to defraud investors and lenders.

"This serial fraudster used his Cinderella-like background, impressive educational credentials, and virtue signaling skills to swindle investors and lenders out of hundreds of millions of dollars," said First Assistant U.S. Attorney Bill Essayli of the Central District of California. "This criminal case serves as a warning: Anyone can get duped by a con man."

PREVIOUS COVERAGE: 

• Kawhi Leonard investigation: Clippers-Raptors trade on hold until probe is complete
• NBA investigation into Clippers, Kawhi Leonard salary cap circumvention allegations to wrap up soon: Silver
• Kawhi Leonard investigation: Adam Silver gives update during All-Star Weekend
•  Kawhi Leonard scandal: What we know about the alleged $28M ‘no-show job’
• Kawhi Leonard appears unfazed by scandal: 'I've been through times like these before'
• NBA will not rush judgment in Kawhi Leonard investigation, Commissioner Adam Silver says