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Richard Lawler
The NBA suspends Steve Ballmer for a year and takes five draft picks over the Kawhi Leonard scandal.

The NBA has announced penalties from its investigation into cap circumvention allegations around the Clippers, Kawhi Leonard, and a string of companies that inked shady “endorsement” deals with the star: Aspiration, Daktronics, Boingo Wireless, and Lockton Insurance, as detailed in a report from the law firm of Wachtell, Lipton, Rosen & Katz.

There are also fines ($30 million for the Clippers, $700,000 for Leonard), suspensions for two team execs and Leonard’s uncle, and the investigation is apparently ongoing.

THERE IS EVIDENCE OF THE CLIPPERS FUNDING AN ENDORSEMENT AGREEMENT The foregoing makes clear that the Clippers violated NBA rules in connection with the Boingo, Daktronics, and Lockton endorsement agreements with Mr. Leonard. Investigators note, however, that the Clippers’ misconduct may have been even more severe. As set forth above, the timing of the three endorsement agreements with Mr. Leonard coincides with each of the companies receiving multi-million dollar payments from the Clippers, purportedly in connection with business to be provided by these companies to the team. But these payments may in fact have been made principally to fund the endorsement deals with Mr. Leonard. Indeed, a credible witness with direct knowledge told investigators that the consulting agreement one company signed with the Clippers was in fact a ruse, designed and intended to be a vehicle for the team to provide the company with funds to be paid to Mr. Leonard. According to this witness, the company was willing to enter into such a sham consulting agreement based on the promise to win a much larger services contract with the Clippers. This confidential information came to investigators late in the investigation, and additional steps are ongoing to corroborate it.
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