Last week, the NBA Commissioner, Adam Silver, said he had “very broad powers.” In situations like the LA Clippers’ case, Article XIII of the league could trouble Kawhi Leonard and Steve Ballmer. Cap circumvention is a heinous offense in the world of basketball, where every team is fighting through aprons and financial caps. And while Silver didn’t explicitly mention fines, draft picks, and suspensions, it seems like these are on their way.
Meanwhile, Article XIII lays out the penalties for circumvention, and a few could spell trouble. However, Silver has a menu set out before him:
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
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In the meantime, Clippers boss Steve Ballmer sent a clear message to the NBA commissioner and every other franchise. Well, to begin with, the 69-year-old billionaire isn’t hesitant to address the pressing matter. “This is not a fun thing to be through. I was personally defrauded through our interactions with the company and some of the staff. The fraud sort of extended broadly through that,” Ballmer told the Sports Business Journal in LA.
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Ballmer further addressed the controversy with sharp clarity, stressing that while ties with the sponsor ran deep, player and team dealings stayed separate. He admitted the setup was complex, involving carbon credits, yet insisted on compliance with NBA rules. Moreover, he voiced confidence, declaring their actions stood firm under scrutiny. “And so I welcome the investigation that the NBA is doing. It’s a great way, from our perspective, to get the facts out there. As I say, there’s nothing fun about being highlighted in this way,” he added.
“It’s a whole lot more fun to be highlighted for building a great arena. But this, too, shall pass. Like I said, I feel very good about what we did. We welcome the NBA taking a look at it and hopefully agreeing with us,” Ballmer concluded.
Now, fines of $1 million for Steve Ballmer or $7.5 million for the LA Clippers barely scratch the surface, while draft pick losses loom as the real punishment, echoing the Timberwolves’ five-pick penalty in 1999. But if the allegations hold, could the fallout extend further, putting Kawhi Leonard’s future with the Clippers in genuine jeopardy?
Kawhi Leonard could be standing at the edge of a Clippers exit
In 2000, the NBA crushed the Minnesota Timberwolves for a covert salary scheme tied to Joe Smith, stripping three of five first-round selections, imposing a $3.5 million penalty, and canceling his contract along with Bird Rights. Commissioner David Stern, backed by arbitrator Kenneth Dam, nullified deals, while Glen Taylor and Kevin McHale faced suspensions. Smith departed after Minnesota’s $611,000 cap left rivals offering $1 million to $6 million.
Coming back to the present, the NBA could remove every remaining draft asset tied to the Los Angeles Clippers, including three first-rounders in 2030, 2031, and 2032, as well as swaps in 2027 and 2029. The league might also take second-rounders in 2031 and 2032 and a conditional 2026 selection from Memphis. Precedent suggests a chance of partial restoration if the franchise complies.
Yet the fiercest penalty may touch Kawhi Leonard. His contract, valued at $50 million for next season, could be voided, echoing the harshest tools in the collective bargaining arsenal. That move, however, presents a dilemma. It could relieve Steve Ballmer’s club by freeing maximum cap room for 2026. Alternatively, the commissioner may count Aspiration-related earnings against future salary sheets to block an advantage.
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