On Wednesday, the NBA handed out a massive penalty to the Los Angeles Clippers and Kawhi Leonard for violating the league's salary cap circumvention rules. A day later, more surprising details are surfacing about this cap circumvention scheme, with NBA insider Shams Charania indicating Leonard "did not have any knowledge" of what was going on behind his back. "I had one executive tell me last night that the Clippers were essentially acting like a power agent, brokering deals for Kawhi Leonard's business representative in the time in Dennis Robertson," Charania said on "Get Up," adding, "And that's millions and millions of cashflow coming into Kawhi Leonard in a point in time in the calendar, when we were in a pandemic in 2020 and 2021." Charania said that in that timeframe, Kawhi had "pocketed tens of millions of dollars in endorsement deals" that didn't require obligations to participate in anything.
More news: Diana Taurasi Compares Rising WNBA Star to Kyrie Irving "And the investigation, I do have to make it clear, did show that Kawhi did not have any knowledge of this salary cap circumvention that was going on," Charania said, mentioning that Leonard "essentially gave all of the power to his uncle, Dennis Robertson." On Wednesday, Charania reported from his sources that the Clippers received historic penalties in the NBA's ruling on these salary cap circumvention investigations. The Clippers lost five future first-round picks, and owner Steve Ballmer was fined $30 million. In addition, Ballmer was suspended from attending all team and league activities for one year.
Clippers President of Basketball Operations Lawrence Frank received a six-month suspension without pay, and Clippers President of Business Operations Gillian Zucker was suspended for a year without pay for their involvement, according to the NBA's ruling. Leonard was ordered to pay $700,000 in restitution, per the NBA's ruling. According to Charania, this was due to Leonard receiving "improper benefits from his uncle and the Clippers organization." Read more: NBA Hits Clippers With Massive Punishment After Kawhi Leonard Scandal Leonard's uncle, Dennis Robertson, also received a five-year ban from "conducting business or otherwise engaging with NBA teams and their affiliates on behalf of or with respect to any player, employee, or other league or team personnel." It's certainly eye-opening to see what can happen behind a player's back when they allow a trusted individual to act on their behalf financially.
Based on Charania's recent report, Leonard didn't know this circumvention scheme was occurring as all that money flowed in. In late June, Leonard was traded from the Clippers to the Toronto Raptors, but the trade was put on hold as the NBA continued its investigation. Per ESPN, Charania said there is a "full expectation" that this trade will happen now that the investigation is finished and a ruling has been made.
Leonard's only penalty was the $700,000 restitution mentioned above. Based on the NBA's ruling, Leonard has not been suspended for this salary cap circumvention scheme. "For 15 years, my priority has been giving everything to my family, the game, and those I share the court with.
As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate," Leonard said in part of a statement through his new agent, Harrison Gaines. Still, one has to wonder how much of a distraction this might be for him and his new team as they prepare for the upcoming regular season in the weeks ahead. The Raptors host the Chicago Bulls in Toronto on Wednesday, Oct. 21, to officially tip off their season.
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