Clippers owner Steve Ballmer, in the wake of the NBA punishing his franchise for circumventing the league’s salary cap by “initiating off-court income opportunities” for star forward Kawhi Leonard, said he has “sincere regrets” and apologized to fans as part of a lengthy statement he issued Sunday night.
“This has been a very difficult time for everybody associated with the Clippers, and for that, I have sincere regrets. 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’s independent investigation, which was conducted by the law firm of Wachtell, Lipton, Rosen & Katz, found a “pattern of misconduct and multiple significant rules violations by the Clippers organization, a prior offender of the salary cap circumvention rules,” per the league’s statement on Sept. 2
Los Angeles Clippers owner Steve Ballmer and Kawhi Leonard received different punishments for the Clippers’ circumventing the league’s salary cap. Getty Images
The league dropped staggering punishments on the Clippers, fining the franchise $30 million, suspending Ballmer for one year and stripping the franchise of five first-round draft picks.
President of business operations Gillian Zucker (one year) and president of basketball operations Lawrence Frank (six months) were also suspended for their roles in the scandal.
It appeared the Clippers were not going down easy after the NBA dropped the hammer on them.
In the immediate aftermath, the franchise issued a statement saying it “vehemently reject the NBA’s findings, which are the result of a heavily biased investigation seeking to justify a predetermined narrative rather than facts and evidence.”
But Ballmer was singing a different tune.
Lawrence Frank was suspended for six months. Jayne Kamin-Oncea-USA TODAY Sports
“We are committing to put this chapter behind us,” Ballmer’s statement continued. “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. The challenges ahead of us are significant, but so is our resolve. 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.”
Leonard was forced to pay the NBA $700,000 for restitution for improper benefits provided by the Clippers, while his uncle and former business manager, Dennis Robertson, has been banned by the NBA from all business dealings for five years.
In a statement he issued after the league’s punishments were announced, Leonard stated he accepted “full responsibility for lapses in judgment by people within my inner circle and regret the distraction this situation has caused the fans and my family.”
His statement continued: “I entered into my contract with the Clippers as well as the agreements in question in good faith, fully committed to fulfilling my obligations and with no knowledge of any intent on anyone’s part to circumvent the salary cap.”
Leonard also alluded to returning to Toronto as part of the trade between the Clippers and Raptors that was agreed upon in late June but was halted in light of the investigation.
Federal prosecutors have opened a criminal investigation into the franchise over allegations it circumvented the NBA’s salary cap.
It wasn’t clear what possible crimes federal prosecutors are investigating, or which people are the target of the federal inquiry. It also wasn’t clear whether criminal charges would come from the investigation.
Spokespeople for the Clippers and the NBA didn’t respond to messages from The California Post on asking about the investigation.
The Department of Justice is the second government entity to investigate the Clippers-Leonard scandal.
Daktronics acting CFO Howard Atkins said during a recent earnings call with investors that the Securities and Exchange Commission is seeking information concerning the South Dakota-based company — which built the $100 million video board inside the Clippers’ Intuit Dome — and its relationship with Leonard.
Daktronics, along with Aspiration Partners, Boingo Wireless and Lockton Insurance, was one of the four companies with endorsement deals with Leonard that were at the center of the NBA’s investigation.
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