The best corporate regulator in America isn’t the SEC. It’s the NBA.
Stripping the Los Angeles Clippers of draft picks is enforcement that hits misbehaving companies where it hurts.
The NBA's recent decision to penalize the Los Angeles Clippers might just be the most effective corporate regulation America has seen. Unlike the Securities and Exchange Commission, Commodity Futures Trading Commission, Occupational Safety and Health Administration, or Environmental Protection Agency, the NBA's punishment was both harsh and memorable.
The team will forfeit their next five first-round draft picks as punishment for their role in circumventing the salary cap to retain star player Kawhi Leonard. This unique approach to corporate regulation gets straight to the heart of why billionaires invest in sports teams - to be cool and win. NBA Commissioner Adam Silver stated that this penalty "gets to the core of why these billionaires buy sports teams.
They've been losers since high school so they want to be cool, be literal winners and have trophies." This innovative punishment may lead to the Clippers being nothing more than a footnote in sports history, a stark reminder of the consequences of breaking the rules.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
