The NBA handed down one of the most severe disciplinary actions in league history Wednesday, penalizing the Los Angeles Clippers, owner Steve Ballmer and star forward Kawhi Leonard following an investigation into alleged salary cap circumvention.

Steve Ballmer Suspended as Clippers Lose Five Draft Picks

The league suspended Ballmer for one year and fined the Clippers $30 million after determining that the organization violated NBA salary cap rules.

The Clippers must also forfeit five first-round draft picks, surrendering one selection annually from 2029 through 2033. The loss of those picks could significantly limit the franchise’s ability to rebuild or acquire players through future trades.

Leonard, a two-time NBA Finals MVP, received a $700,000 penalty. Lawrence Frank, the Clippers’ president of basketball operations, was suspended for six months, while business operations president Gillian Zucker received a one-year suspension.

The penalties followed a nearly yearlong investigation conducted by an outside law firm.

“I am deeply disappointed by the flagrant violations of our rules and by the Clippers’ institutional and leadership failures that led to this misconduct,” NBA Commissioner Adam Silver said in a statement. “The severity of the penalties reflects the seriousness of the violations.”

Clippers Deny Wrongdoing and Plan to Challenge NBA Ruling

Throughout the investigation, the Clippers repeatedly denied violating league rules and said they expected to be cleared.

“I think that we’re going to be in the clear,” Leonard said in April, “so I’m not stressing it.”

Frank also defended Ballmer at the time.

“If you know Steve and know Steve’s integrity, you know there’s nothing to it. We believe and we’ve very confident we’re on the right side of this.”

The organization continued to dispute the allegations after the penalties were announced.

“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,” the team said in a statement. “What the league told us privately differs from what it announced today publicly, and they have not held themselves close to the standard Commissioner (Adam) Silver set at the start of this investigation to ensure its fairness and accuracy.”

The Clippers said they 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 NBA said the league and the National Basketball Players Association agreed that the penalties would be final and binding on all parties.

The league added that the outside law firm continues to receive information connected to the investigation and that it “will consider further action as appropriate.”

Kawhi Leonard’s $28 Million Endorsement Deal Draws Scrutiny

The NBA opened its investigation in September 2025 after journalist Pablo Torre reported on a $28 million endorsement agreement between Leonard and Aspiration Fund Adviser LLC.

League officials examined whether the contract provided Leonard with compensation outside his Clippers contract, potentially allowing the organization to circumvent salary cap restrictions.

Aspiration later filed for bankruptcy. Earlier this year, company 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.

Ballmer’s Attorney Calls Investigation a “Witch Hunt”

The Clippers released a letter sent to Silver by Ballmer’s attorney, David Kelley, who characterized the investigation as “a witch hunt” and the resulting sanctions as a “gross injustice.”

Kelley accused Silver of failing to uphold assurances that the investigation would follow due process and fundamental fairness. He also argued that the league carried the burden of proving the alleged violations with evidence.

“League counsel has acknowledged in our discussions that the league does not believe there was an agreement between the Clippers and Aspiration to funnel money to Kawhi Leonard. League counsel also agreed with the Department of Justice, the Securities and Exchange Commission, and a federal judge that Mr. Ballmer was a victim of Joe Sanberg’s fraud — not a participant,” wrote Kelley, a partner at O’Melveny & Myers.

Penalties Could Affect Clippers for Years

The Clippers now face major leadership disruptions, a substantial financial penalty and the long-term loss of valuable draft assets. Although the organization has pledged to challenge the ruling, the NBA maintains that its penalties are final and binding.