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The NBA just hammered the Clippers — now they must extend their longest winning streak while crippled

September 7, 2026 · 8 min

Devin Cross & Jonathan Ingles

The NBA fined the LA Clippers $30 million, stripped five first-round picks, suspended owner Steve Ballmer for one year, and fined Kawhi Leonard $700,000 for cap circumvention involving a sham $28 million endorsement deal — with analysts arguing the draft capital loss, not the fine, is the real punishment.

On September 2, 2026, the NBA announced sweeping punishments against the Los Angeles Clippers following an approximately 11-month investigation into salary-cap circumvention.

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About this episode

The NBA's punishment of the LA Clippers looks, on the surface, like a landmark reckoning: a $30 million fine, five first-round picks stripped, owner Steve Ballmer suspended for a year, and Kawhi Leonard fined $700,000. But the moment you set those numbers side by side — and against Ballmer's $80 billion net worth — the picture gets more complicated. This episode works through what the ruling actually means. The scheme at the center of it wasn't just cap circumvention: the Clippers allegedly funneled supplemental pay to Kawhi through a $28 million endorsement deal with a company that turned out to be a Ponzi operation. Its co-founder was sentenced to 14 years in federal prison for defrauding investors of at least $248 million. The front office, according to the NBA's findings, never asked where the money was coming from. Then there's the Kawhi asymmetry — the gap between what the player at the center of the scheme paid ($700K) and what the franchise lost (five first-rounders). The episode examines why the NBA structurally couldn't suspend Leonard harder, what that means for future deterrence, and why the 'vigorous challenge' the Clippers announced may already be dead, given they're reportedly shopping Darius Garland. The picks, not the fine, are the real sentence. And they land on whoever eventually runs basketball operations for a team that hasn't missed the playoffs in 15 years.

Frequently asked

What punishment did the NBA give the Clippers for the Kawhi Leonard cap circumvention case?

The NBA fined the LA Clippers $30 million, revoked five first-round draft picks, suspended owner Steve Ballmer for one year from team operations, and fined Kawhi Leonard $700,000. The loss of five first-round picks is widely seen as the consequential penalty, reshaping the franchise's rebuilding options through at least 2030.

How did the Clippers circumvent the NBA salary cap with Kawhi Leonard?

The Clippers arranged a $28 million endorsement deal between Kawhi Leonard and Aspiration Fund Adviser LLC — a no-show arrangement where Leonard was paid to exist on paper. His official salary stayed low on paper while at least four companies supplemented his real compensation, keeping the Clippers under the cap on paper.

Why was Kawhi Leonard only fined $700,000 and not suspended?

The NBA fined Kawhi Leonard $700,000 but did not suspend him. The NBA's public ruling document does not explain the reasoning, and multiple analysts noted the omission. One interpretation: suspending a superstar risks signaling to players that the league will punish them to protect its own financial infrastructure, making suspension politically untenable.

How does the Clippers' punishment compare to the Minnesota Timberwolves' Joe Smith case?

The Clippers' punishment exceeds the Minnesota Timberwolves' 2000 Joe Smith cap circumvention case in scale. The key escalating factor was the Clippers' prior offender status — the NBA had already cited them in 2015 over a DeAndre Jordan endorsement deal — which raised the ceiling on penalties under league rules.

Is the $30 million NBA fine enough to deter future cap circumvention by billionaire owners?

Most analysts say no. Steve Ballmer's net worth is approximately $80 billion, making a $30 million fine effectively a rounding error with a press release attached. The five first-round picks are the only part of the Clippers' punishment that cannot be offset by spending, because no amount of money buys back forfeited draft capital.

Grounded in 10 sources
NBA suspends Clippers owner Ballmer, fines team $30M, Kawhi Leonard $700K in cap circumvention case · apnews.com
**NBA strips Clippers of five first-round picks over Kawhi Leonard salary-cap circumvention** · newyorker.com
NBA punishes LA Clippers over salary cap scheme : NPR · npr.org
Was Clippers punishment from NBA too harsh, too soft or just right? Writers weigh in - The Athletic · nytimes.com
Clippers 'vehemently reject' NBA's findings, will 'vigorously challenge' penalties - Yahoo Sports · sports.yahoo.com
'The Hoop Collective': Episodes of Brian Windhorst's NBA podcast - ESPN · espn.com
NBA punishes Clippers after Kawhi investigation: Top questions · espn.com
NBA hammers Clippers, Steve Ballmer for salary cap circumvention as Kawhi Leonard avoids suspension - CBS Sports · cbssports.com
Worst deal in NBA history? With Clippers' penalties, the Kawhi Leonard signing now rivals Luka Dončić trade - CBS Sports · cbssports.com
Brian Windhorst and Shams Charania break down how the Clippers’ salary cap scandal worked, why Kawhi Leonard escaped and what’s next for Steve Ballmer - cleveland.com · cleveland.com
Read transcript

Jonathan Ingles: Quick question before we get into it — did you see the Kawhi number? Seven hundred thousand. That is what Adam Silver decided the guy at the center of this whole scheme owes.

Devin Cross: Good to be here — and yeah, I saw it. Seven hundred thousand while the Clippers lose five first-round picks. Those two numbers next to each other are insane.

Jonathan Ingles: Five first-rounders. Ballmer out for a full year. And Kawhi Leonard walks to the Toronto Raptors. That is the ruling, in full.

Devin Cross: Hold on — Steve Ballmer can't — he's suspended from his own team for a year?

Jonathan Ingles: One year. Cannot participate in team operations. And before anyone calls this the harshest punishment in league history — go look at what happened to the Minnesota Timberwolves in 2000 over the Joe Smith case. The Clippers are not alone in losing this kind of draft capital over circumvention.

Devin Cross: No, but — five picks though. That's — I mean, that's a rebuild timeline. That's not a fine, that's restructuring what this franchise looks like in 2030.

Jonathan Ingles: It is. And the person most responsible for triggering it collects his seven hundred K fine, gets traded, and the Clippers are left holding the wreckage. That's the part that should bother every fan watching this.

Devin Cross: It bothers me. It bothers me a lot. Five picks is not this year's problem — it's the next general manager's nightmare.

Jonathan Ingles: But before we keep torching Kawhi — the Clippers didn't just break a rule. Pablo Torre reported the whole thing: a $28 million endorsement deal with Aspiration Fund Adviser LLC. Fake. No-show. Kawhi Leonard signing paperwork for a company that was essentially paying him to exist so the Clippers could hide the money off the cap.

Devin Cross: Wait — explain that like I work a normal job. Because I'm not sure everyone's tracking what 'no-show endorsement' actually means.

Jonathan Ingles: Your employer secretly arranges for three shell companies to pay you extra every month. Your official salary stays low. On paper, you're underpaid. In reality, you're collecting the full number. That's the whole scheme.

Devin Cross: And the NBA found at least four companies doing this. Not one — four.

Jonathan Ingles: Four. And then Aspiration Fund Adviser filed for bankruptcy. And then — co-founder Joseph Sanberg got sentenced to 14 years in federal prison for defrauding investors of at least $248 million.

Devin Cross: Hold on. The company paying Kawhi Leonard was running a Ponzi scheme?

Jonathan Ingles: Fourteen years. Federal prison. The Clippers funneled Kawhi's supplemental pay through a company that was actively defrauding its own investors. That's not cap circumvention anymore — that's a front office that didn't ask a single question about where the money was coming from.

Devin Cross: Okay — and this is why the prior offender thing matters. Because the NBA already tagged them in 2015 over DeAndre Jordan. Same category — improperly facilitating an endorsement deal. They knew exactly what line they were crossing and they crossed it again with a company that turned out to be committing federal crimes.

Jonathan Ingles: That's why the punishment exceeds the Joe Smith Minnesota Timberwolves precedent. Silver didn't pull the number from thin air — the prior offender designation escalated everything. The Clippers built the ceiling on their own punishment.

Devin Cross: And that's the thing that I — wait, no, because they built the ceiling but Kawhi didn't. His contract wasn't voided. Not voided. The scheme was literally designed to supplement his compensation and his punishment is seven hundred thousand dollars.

Jonathan Ingles: Picture Kawhi's agent the morning the ruling drops. Reading that number off his phone. Seven hundred K. He laughed. I'd bet everything on it.

Devin Cross: Come on — you think he laughed?

Jonathan Ingles: The NBA's own findings do not explain the reasoning. Multiple analysts have said this — the public document does not justify why Leonard isn't suspended. That's not spin. That's the actual record.

Devin Cross: And Brian Windhorst — I mean, Windhorst is not someone who throws grenades casually — he flagged that the Clippers' whole 'we vehemently reject these findings, we will vigorously challenge' posture could actually make things worse for them on appeal.

Jonathan Ingles: Fighting Adam Silver in public while you're also trying to trade Darius Garland to recoup assets? That's two strategies that cancel each other out.

Devin Cross: Wait — Garland is actually on the table? That's — okay, that's the part that tells me the front office already knows the appeal is theater. You don't start moving roster pieces if you think the picks are coming back.

Jonathan Ingles: And look — I'll give you your partial win here. You've always said I root for the star to skate. Fine. But the NBA structurally cannot touch Kawhi. Suspend a superstar and every player in the league reads it as: the league will burn you to protect itself. That's the real ceiling on his punishment. Not fairness — asset protection.

Devin Cross: The bigger question — and we'll get into this — is whether any of this actually stops the next billionaire owner from running the same math. Because thirty million and five picks against an eighty billion dollar net worth is a different calculation than it looks.

Jonathan Ingles: But that's exactly what breaks the deterrence argument. Thirty million to Steve Ballmer — worth eighty billion — is not a fine. It's a tax. A rounding error with a press release attached. The only number that actually hurts is five first-round picks, because Ballmer can't write a check to get those back.

Devin Cross: That's the verdict right there, isn't it.

Jonathan Ingles: The fine is theater. The picks are the sentence.

Devin Cross: And the picks land hardest because — wait, no — the Clippers have had fifteen straight winning seasons. Fifteen. They're trying to get to sixteen with no one named to run basketball operations yet. No interim, nobody. And five first-rounders just got pulled from whoever that person eventually is.

Jonathan Ingles: Frankly, that leadership vacuum might be the most underrated part of this whole story. The executive bench is suspended or implicated and the organization has to function anyway.

Devin Cross: So the calibrated version — the one that actually holds up — is: Kawhi's fine is wrong, the $30 million is basically symbolic, and the thing that bites is those five picks costing the next GM a decade of rebuilding runway. That's the real punishment. Not Ballmer's suspension year, not the fine — the draft capital.

Jonathan Ingles: Agreed on the picks. But the Kawhi asymmetry is still the story I can't let go. The NBA protected its asset, punished the infrastructure around him, and called it justice. If the next billionaire owner does this math — and they will — they'll just make sure the superstar is worth protecting too.

Devin Cross: Which means the incentive to cheat is basically intact. The deterrence is fake at the financial level, real only in the draft capital — and only then if you're a franchise that actually needs to draft. Ballmer bought this team for two billion dollars. He'll spend his way around the picks wherever he legally can.

Jonathan Ingles: Okay, fine. Maybe it's not a full conspiracy. Maybe it's just the NBA being the NBA — protect the asset, punish the infrastructure, write a press release, call it a reckoning. Adam Silver didn't design a system. He just ran the incentives to their logical end.

Devin Cross: That's — I mean, that's the cleanest way anyone's put it. My call: Kawhi's in Toronto, the five picks are gone forever, and the Clippers miss the playoffs for the first time in fifteen years. That's the actual sentence. Not Ballmer's suspension year, not the thirty million — a losing season. First one in a decade and a half.

Jonathan Ingles: Missing the playoffs. Bold. I'll go further — the appeal gets dropped within sixty days. They're already shopping Darius Garland. You don't move guards when you think the picks are coming back. My call stands: the 'vigorous challenge' is dead before training camp.

Devin Cross: We are absolutely clipping this. Kawhi's in Toronto, the picks are gone, and Adam Silver handed us a press release and called it a reckoning.

The NBA just hammered the Clippers — now they must extend their longest winning streak while crippled · Onpode