NBA Brings the Hammer on the Clippers — $30 Million Fine, 5 First-Round Draft Picks, and Steve Ballmer Is Banned for a Year

On Wednesday, the NBA handed down the largest punishment in its history to the Los Angeles Clippers and their owner, Steve Ballmer, following a year-long investigation into the team's circumvention of the league's salary cap rules for the benefit of Kawhi Leonard. The Clippers will be without five first-round draft picks from 2029 to 2033, while owner Steve Ballmer has been suspended for a year due to his alleged knowledge of helping Leonard secure off-court income opportunities.

The NBA found Ballmer guilty of approving a deal with Aspiration, a now-bankrupt startup that served as the Clippers' jersey-patch sponsor. Aspiration subsequently signed Leonard to a $28 million no-show endorsement deal after he joined the Clippers, exceeding his on-the-books salary. The NBA deemed the team's "novel theory" that it was permissible to introduce business partners to players when requested by the player or their representative unpersuasive.

While there's no legal violation, the NBA considers this a breach of its rules, much like Microsoft faced severe penalties in the past for similar "dirty-tricks" moves. The Clippers, a franchise without a championship and no Finals appearances, will suffer long-term consequences from this decision.