NBA sanctions Clippers over alleged off-books payments to Kawhi Leonard

An investigation described in the supplied evidence alleges that Los Angeles Clippers owner Steve Ballmer arranged payments to Kawhi Leonard through four companies, including Aspiration, Locked In Insurance, Boingo Wireless and a scoreboard manufacturer. Documents reportedly specified $48 million for Leonard—$20 million in stock and $28 million in cash—for an unannounced deal, while the arrangements were presented as jobs, consulting agreements or fees. The evidence does not establish a final judicial finding on every allegation.

The NBA fined Leonard $700,000 and suspended Ballmer for one year. The league also took five first-round picks from the Clippers, imposed a $30 million penalty and required Ballmer to pay $50 million in outside legal fees. The Clippers’ president of business operations was suspended for a year, while the general manager and president of basketball operations received six-month suspensions.

Ballmer has threatened litigation against NBA commissioner Adam Silver. After Leonard reached a settlement with the league, the arbitration option was legally removed, according to the supplied account. The loss of draft picks is expected to create long-term competitive difficulties for the Clippers, while a possible sale of the franchise remains uncertain.