The NBA is currently investigating the Los Angeles Clippers for alleged salary cap circumvention involving superstar forward Kawhi Leonard. While the investigation is far from over, many wonder what would happen if the Clippers did indeed violate the league CBA.
The Athletic’s John Hollinger, who once worked as Vice President of Basketball Operations for the Memphis Grizzlies, explained the penalties that the NBA could hand down on the Clippers and their implications.
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According to Hollinger, the sanctions for such a violation are expressly listed in the league’s CBA, notably Article XIII beginning on Page 341:
Fine the Clippers up to $7.5 million
Fine Leonard up to $350,000
Forfeit Clippers draft picks
Suspend Ballmer or other Clipper personnel up to a year and fine them up to $1 million each
Void Leonard’s contract and prohibit him from re-signing with the Clippers
Require Leonard to return the money he received from Aspiration.
Voiding Kawhi’s contract will be a big issue.
During last week’s press conference after the Board of Governors meeting, Silver said he had ‘broad powers’ in these cases and mentioned fines, forfeiture of draft picks, and suspensions. However, as Hollinger wrote, a punishment makes the situation tricky and even problematic, voiding Kawhi’s contract.
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Hollinger asked what would happen if the NBA voids Kawhi’s contract. Since Leonard will make $50 million for the 2025-26 season, would that mean that the Clippers will free up that amount in cap space and be eligible to sign a max free agent? Or will the league continue to count the $50 million against their salary cap without Leonard playing for them? Would that be double jeopardy for the Clippers? Also, how would the $28 million he received from Aspiration be treated? Would it be counted against the cap as well since it is considered a part of his salary?
But perhaps the biggest issue would be Kawhi himself. If his contract is voided and he can no longer sign with the Clippers, the question is, where will he play? As a free agent, he will be free to sign with any of the 29 other teams in the league. And considering the investigation is ongoing, there is a possibility that a decision will be made in the middle of the 2025-26 season, which makes the entire situation even more complicated.
“So, can you imagine if Kawhi Leonard were suddenly an unrestricted free agent halfway through the season, one who is forbidden from re-signing with the Clippers? What if he decides he just likes being in L.A. and signs with the Lakers for the minimum? What does that do for competitive balance? For that matter, what if he signs anywhere for a meager salary — won’t that be hugely distorting to the playoff chase?” asked Hollinger.
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Might as well drag the investigation until the end of the 2025-26 season
Whether Kawhi signs with the Lakers or any of the other title contenders, the other 28 teams will definitely be up in arms, considering Leonard’s stature. Hollinger said perhaps the best option would be to suspend Leonard for the rest of the season and let him sign with a new team during the summer to be fair to every team in the league. However, that could have potential issues with the NBPA. Because of that, John had a suggestion:
“In some ways, it’s much easier, from the league side, if it can drag the whole process out until the spring and then void the contract once the regular season has ended, setting up an orderly process for Leonard to find his next team in the summer.”
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Hollinger’s suggestion makes sense. But that only solves the issue of what to do with Kawhi, the player. The others—like the cap hit, treatment of the $28 million no-show contract, and so on will still have to be settled. Given the complex nature of the penalties and the possible confusion that will follow, perhaps the best outcome for Silver and the league is for the investigators to clear Ballmer, Leonard, and the Clippers of the charges, and they can all move on.
This story was originally reported by Basketball Network on Sep 17, 2025, where it first appeared in the Off The Court section. Add Basketball Network as a Preferred Source by clicking here.