NBA Suspends Steve Ballmer, Fines Clippers $30M Over Kawhi Leonard Endorsement Deal

NBA Imposes Penalties on Clippers and Ballmer

The NBA has suspended Steve Ballmer, owner of the LA Clippers, for one year. Additionally, the Clippers organization faces a $30 million fine and will forfeit five future draft picks. These penalties stem from an NBA investigation into a $28 million endorsement deal involving player Kawhi Leonard.

Investigation Findings Contradict Previous Statements

A 35-page report commissioned by the NBA, conducted by Wachtell, Lipton, Rosen & Katz, concluded that statements made by Ballmer and Clippers president of business operations Gillian Zucker regarding the endorsement deal were inaccurate. Zucker also received a one-year suspension. Kawhi Leonard was fined $700,000 and his business manager banned.

Podcast Initiated League Inquiry

The NBA's investigation was prompted by a podcast, "Pablo Torre Finds Out," which questioned the legitimacy of the endorsement deal. The podcast highlighted the involvement of fintech startup Aspiration and the role of partners like Daktronics in facilitating payments to Leonard beyond the NBA's salary cap, linking it to a scoreboard contract for the team's new arena.

Clippers Dispute Investigation's Bias

The Clippers have responded by sending letters to the NBA, alleging that the investigation was biased and spurred by "a podcaster’s baseless claims." The team claims the investigation has resulted in significant financial and reputational costs for Ballmer and has upset business partners such as Daktronics.

Daktronics' Role in the Deal

In 2020, Daktronics competed for a contract to supply digital scoreboard technology for the Intuit Dome. The Clippers informed Daktronics it was the preferred provider but requested a "spend back" arrangement, where Daktronics would provide business back to the Clippers. This arrangement was tied to the endorsement deal for Kawhi Leonard.