Steve Ballmer, owner of the LA Clippers, has backed down and announced via the franchise's social media that the team will comply with the sanctions imposed by the NBA, following an investigation that uncovered salary cap violations related to Kawhi Leonard's contract.
In a statement released 11 days after the penalties were announced—the harshest in NBA history—Ballmer apologized to fans and took responsibility for the events.
"This has been a very difficult period for everyone associated with the Clippers, and for that, I am truly sorry," Ballmer stated. "I want to apologize to our fans, staff, and my fellow NBA team owners for the distraction and distress this matter has caused, for which I accept responsibility as the principal owner."
In an initial reaction to the NBA's penalties, the Clippers had announced their intention to legally challenge the sanctions, accusing the NBA of failing to uphold prior commitments.
The investigation, conducted by the law firm Wachtell, Lipton, Rosen & Katz, concluded that there was a "pattern of misconduct and multiple significant rule violations" that benefited team star Kawhi Leonard. According to the report, Leonard received €57 million in cash and stakes in four companies, a process facilitated by Ballmer and Clippers executives at the request of Dennis Robertson, the player's uncle and then-agent.
Ballmer, individually, and the Clippers, through inflated sponsorship and service contracts, allegedly channeled money to companies Aspiration Partners, Boingo Wireless, Daktronics, and Lockton Insurance, which then rerouted it to Leonard in exchange for supposed advertising agreements that never materialized.
Initially, the team protested and threatened to challenge the hefty sanctions, which included a one-year suspension for Steve Ballmer from all league activities, a $30 million fine (€26 million), and the forfeiture of five first-round draft picks from 2029 to 2033. However, the team has since reversed its stance.
"We are committed to turning this page," Ballmer's statement read. "We have informed the NBA that we are complying with the penalties imposed by the league, have paid the fine, and are moving forward. While there are still disagreements regarding the report's findings, that is not my focus. Team owners should support, not distract."
Kawhi Leonard himself had already agreed to pay a $700,000 fine, not contesting the sanctions, which eliminated the possibility of the case proceeding to arbitration, a mechanism available only to players.
The sanctions extended to two high-ranking Clippers executives. Gillian Zucker, President of Business Operations, was suspended without pay for one year for being "primarily and directly culpable for the impermissible sponsorship agreements and for providing false and misleading statements to investigators." Lawrence Frank, President of Basketball Operations, was suspended for six months, also without pay, for "his involvement in the impermissible sponsorship agreements and for approving impermissible expenses incurred by Mr. Leonard and his family."
Despite the suspensions, Ballmer expressed confidence in the future, highlighting the depth of his management team. "The challenges ahead are significant, but so is our determination," he wrote. "The trust of our fans is our priority. With our talented roster, exceptional team, and clear vision, I am confident that we will compete at the highest level."
The decision to accept the sanctions could also expedite the resolution of one of the Clippers' major pending issues: the trade of Kawhi Leonard to the Toronto Raptors. The deal, which involves the transfer of Brandon Ingram, Gradey Dick, two first-round picks, a pick swap, and two second-round picks to the Clippers, had been on hold awaiting the investigation's results.