As part of their penalties from the NBA to the Clippers, sources confirm to ClutchPoints that LA will lose the Pacers’ 2029 1st-round pick.
The NBA handed down one of the largest punishments in league history to the LA Clippers and owner Steve Ballmer on Wednesday afternoon after their year-long investigation into potential salary cap circumvention.
Of the many penalties involved, the Clippers will be forced to forfeit five first-round picks, one in each of the 2029, 2030, 2031, 2032, and 2033 NBA Drafts.
However, as a result of the team previously trading its own 2029 first-round pick, which is currently owned by the Philadelphia 76ers, the league is stripping the 2029 first-round pick that LA received from the Indiana Pacers in February as part of the Ivica Zubac trade, league sources confirmed to ClutchPoints. This caveat was first reported by NBA reporter Zach Lowe.
No protections existed on the draft pick sent by Indiana to LA, which is why it can now be voided by the league.
The pick currently owned by the 76ers is a more favorable swap that Philadelphia has the right to exercise and send their own first-round pick in 2029 to the Clippers instead. This pick currently has top-3 protections attached to it, meaning it would go back to the Clippers if their pick ends up being first, second, or third overall in 2029.
At the conclusion of its investigation, the NBA determined that there was foul play between the Clippers and Leonard that directly resulted in a violation of the salary cap circumvention rules contained in the league’s Collective Bargaining Agreement. This determination was based upon information and data collected through an independent investigation conducted by the law firm of Wachtell, Lipton, Rosen & Katz.
A pattern of misconduct and multiple significant rules violations by the Clippers were found in this investigation, which resulted in the league and Commissioner Adam Silver handing out the following penalties:
The Clippers forfeit five first-round draft picks, one in each of the 2029, 2030, 2031, 2032, and 2033 NBA Drafts.
The Clippers are fined $30 million.
Clippers owner Steve Ballmer is suspended from all league and team activities for one year for knowingly seeking to help Mr. Leonard obtain off-court income opportunities, for approving a business deal that he knew was a precondition for Aspiration to enter into an endorsement agreement with Mr. Leonard, and for his failure to create conditions under which his organization abided by the NBA’s circumvention rules.
Clippers President of Business Operations Gillian Zucker is suspended without pay for one year for being primarily and directly culpable for the impermissible endorsement arrangements and for providing false and misleading statements to investigators.
Clippers President of Basketball Operations Lawrence Frank is suspended without pay for six months for his involvement with the impermissible endorsement arrangements and for approving impermissible expenses incurred by Mr. Leonard and his family.
The Clippers organization and personnel are subject to a compliance and monitoring program overseen by the league office for a period of five years.
In connection with his violations, Mr. Leonard is required to pay the league $700,000.
Mr. Robertson (also known as “Uncle” Dennis Robertson) is banned from conducting business or otherwise engaging with NBA teams and their affiliates on behalf of or with respect to any player, employee, or other league or team personnel for a period of five years.
Based on the NBA’s investigation, the Clippers attempted to evade the league’s rules on salary cap circumvention by claiming that there was nothing wrong in introducing business partners of the organization to players if such a meeting was requested by the player or their representation.
The investigative summary provided by Wachtell Lipton claims that Leonard, through the conduct of Mr. Dennis Robertson on his behalf, violated the circumvention rules by “pressuring the Clippers to assist him in obtaining off-court income opportunities, successfully obtaining those opportunities, and failing to reimburse payments by the Clippers for personal expenses.”
For these reasons is why the NBA has concluded that cap circumvention took place, leading to stern punishment being handed down to Ballmer and the Clippers. Although this ruling is final and cannot be challenged through a formal appeal or arbitration, the Clippers made it clear in their statement that they will take every avenue possible to fight what is being labeled as a “biased investigation.”
“We vehemently reject the NBA’s findings, which are the result of a heavily biased investigation seeking to justify a predetermined narrative rather than facts and evidence,” the team’s statement read. “What the league told us privately differs from what it announced today publicly, and they have not held themselves close to the standard Commissioner Silver set at the start of this investigation to ensure it’s fairness and accuracy.
For the past year, we cooperated fully and in good faith and we will now fight just as hard to demonstrate our innocence. We intend to vigorously challenge these findings and penalties through every avenue available to us and look forward to an ethical and impartial arbitration process.”
The NBA handed down one of the largest punishments in league history to the LA Clippers and owner Steve Ballmer on Wednesday afternoon after their year-long investigation into potential salary cap circumvention. Of the many penalties involved, the Clippers will be forced to forfeit five first-round picks, one in each of the 2029, 2030, 2031, 2032, and 2033 NBA Drafts.