NBA Suspends Steve Ballmer One Year, Clippers Forfeit Draft Picks Over $28M Kawhi Leonard Endorsement Scandal
The NBA has imposed significant penalties on Los Angeles Clippers owner Steve Ballmer following an investigation into a $28 million endorsement deal involving star player Kawhi Leonard that reportedly involved no actual endorsing.
Ballmer, the former Microsoft CEO, received a one-year suspension from the league, while the Clippers organization will forfeit five future draft picks and pay a $30 million fine. Additional penalties may also apply.
The investigation was conducted by the law firm Wachtell, Lipton, Rosen & Katz, which produced a 35-page report commissioned by the NBA. According to the findings, Ballmer's previous public denials about the Clippers' involvement in the deal were "inaccurate (at best) with respect to Mr. Ballmer" and "clearly false" when it came to Clippers president.
The controversy centers on an endorsement arrangement that raised questions about its legitimacy. Last September, Ballmer had insisted in an ESPN interview that the Clippers were not involved in the deal, which appeared suspicious given the large sum involved and the lack of actual endorsement activity.
The case represents a significant governance issue for the league, resulting in one of the more substantial penalties imposed on an NBA team owner in recent history.