Clippers owner Steve Ballmer released a lengthy statement Sunday night apologizing to fans and accepting the findings of an NBA investigation of salary cap violations.
“This has been a very difficult time for everybody associated with the Clippers, and for that, I have sincere regrets,” Ballmer’s statement read. “I want to apologize to our fans, employees, and my fellow NBA team owners for the distraction and distress this matter has caused, for which I accept responsibility as principal owner.”
The NBA handed down stiff penalties to Ballmer and the Clippers after the law firm of Wachtell, Lipton, Rosen & Katz found “a pattern of misconduct and multiple significant rules violations” that benefited Clippers star Kawhi Leonard.
The investigation found Leonard received $66 million in cash and equity from four companies facilitated by Ballmer and Clippers executives at the behest of Dennis Robertson, Leonard’s uncle and then-agent. Ballmer invested $60 million in Aspiration Partners, while Boingo Wireless, Daktronics and Lockton Insurance received $22 million from the Clippers in consulting fees.
The Clippers initially protested and vowed to use all means available to contest sanctions that included banning Ballmer from all league activities for a year, fining the team $30 million and taking away five first-round draft picks in the 2029, 2030, 2031, 2032 and 2033 drafts.
Leonard previously agreed to pay a $700,000 fine and did not contest the sanctions, removing the possibility of the case going to arbitration because the mechanism only exists for players and not teams.
“We are committing to put this chapter behind us,” Ballmer’s statement read. “We have communicated to the NBA that we are complying with the penalties assessed by the league, have paid the fine and are moving forward. While there are still disagreements concerning the findings in the report, this is not where I want to focus. Team owners should support, not distract.”
Two of Ballmer’s top executives were also sanctioned, altering the way the team will have to operate moving forward.
Clippers president of business operations Gillian Zucker was 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 was 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.”
Ballmer, however, has assembled a deep front office staff, giving the Clippers a number of options to offset the loss of those who are suspended.
“The challenges ahead of us are significant, but so is our resolve,” Ballmer wrote. “We will continue to build our team and invest in our community. The confidence of our fans is our priority. With our talented roster, outstanding staff and clear vision, I am certain that we will compete at the highest level and be an organization our fans can be proud of.”
The decision to comply with the sanctions rather than attempting to contest them in the court could help resolve one of the biggest outstanding offseason items the Clippers face.
Leonard’s trade to the Toronto Raptors in exchange for forward Brandon Ingram, shooting guard Gradey Dick, two first-round draft picks, a pick swap and two second-round picks was put on hold while both teams awaited investigation results.
With the NBA stripping the Clippers of five future first-round picks, the package they are expected to receive when the Leonard trade is completed would have a substantial impact on their future roster-building options.
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