In 2000, the NBA stripped the Minnesota Timberwolves of five first-round picks for a secret handshake deal with Joe Smith. It was a severe punishment that stood as the league’s benchmark for a long time till it was broken this month by Steve Ballmer and the LA Clippers.
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Stephen Curry, watching the fallout from across the league, says none of it caught him off guard. Speaking to CNBC, Curry addressed the NBA’s ruling against Ballmer and the Clippers.
“I wasn’t surprised,” Curry said. “I think the reason the investigation took as long as it did, and the idea that I know Steve Ballmer, who I’ve gotten to know, I know he’s a great guy, there’s a reason that’s all happened the way that it has. At the end of the day, Adam Silver had a job to do, and I think the punishment makes sense, and we all move forward.”
On Sept. 2, the league announced the Clippers must forfeit five consecutive first-round picks from 2029 through 2033. Plus an unprotected 2029 first-rounder acquired from Indiana in the Ivica Zubac trade.
Steve Ballmer was suspended for a full year from all league and team activities. Team president Gillian Zucker received a one-year suspension without pay, and president of basketball operations Lawrence Frank was suspended six months without pay. Leonard himself was fined $700,000, a penalty that cleared the way for his previously agreed trade to Toronto to proceed.
The league’s findings and investigations were done by outside law firm Wachtell, Lipton, Rosen & Katz. They concluded that the Clippers improperly funneled off-court endorsement money to Leonard through corporate partners including Aspiration, Boingo Wireless, Daktronics, and Lockton Insurance, in exchange for team business relationships.
The report also found the franchise covered personal expenses for Leonard and failed to report improper solicitations made by his former business manager and uncle, Dennis Robertson. Commissioner Adam Silver called it “flagrant violations” reflecting “the Clippers’ institutional and leadership failures,” noting that the organization was a repeat offender of the same cap-circumvention rules.
Ballmer initially vowed to fight the ruling. His attorney called the investigation “heavily biased” and argued that the league was “retroactively punishing the Clippers for violating a rule that never existed.” However, Ballmer later confirmed the Clippers had paid the $30 million fine and would accept the punishments, even while maintaining disagreements with some of the report’s findings.
Combined with picks already surrendered to originally acquire Leonard and Paul George in 2019, the Clippers have now given up ten first-round selections in total pursuing and retaining one star player.