From Business Insider · Brent D. Griffiths · · 1m 30s
Ballmer folds on the Kawhi Leonard scandal
The Clippers owner stops fighting the NBA's record penalty and takes the year-long ban, but the investigations aren't over.
In brief
The Clippers owner stops fighting the NBA's record penalty and takes the year-long ban, but the investigations aren't over. Ballmer accepted a $30M fine, five lost first-round picks, and a one-year ban, yet federal and SEC probes mean the Leonard saga still has room to run. Originally reported by Business Insider.
Ballmer says sorry
In a Sunday night statement, the Clippers owner apologized to fans, employees, and other NBA owners for the mess around Kawhi Leonard's contracts and took responsibility as principal owner.
“This has been a very difficult time for everybody associated with the Clippers, and for that, I have sincere regrets.”
What the report found
An NBA-commissioned Wachtell Lipton report said the Clippers beat the salary cap by steering team business partners into deals with Leonard and covering his personal expenses.
“knowingly sought to help Mr. Leonard obtain off-court income opportunities”
The biggest fine ever
Adam Silver hit the Clippers with a $30 million fine, the largest in league history, stripped five first-round picks from 2029 through 2033, and suspended Ballmer for a year.
A podcast started it
Journalist Pablo Torre's show "Pablo Finds Out" raised questions about whether Leonard's endorsement deals were no-show jobs. The reporting later won a Pulitzer Prize.
From lawsuit threats to peace
The Clippers first vowed to challenge the findings through every avenue, hinting at suing the NBA. Ballmer reversed course, saying he still disagrees but won't make it his focus.
“Team owners should support, not distract.”
Not over yet
Leonard was fined $700,000 and his uncle got a five-year ban. The DOJ is now looking into the matter, the SEC is probing Daktronics, and investigators keep taking in new information.
“Wachtell Lipton continues to receive information relevant to the investigation.”
The short version
Ballmer accepted a $30M fine, five lost first-round picks, and a one-year ban, yet federal and SEC probes mean the Leonard saga still has room to run.
