NBA insider John Hollinger warned in The Athletic that the league would act decisively if the Clippers are found guilty of salary cap circumvention. He dismissed any notion that other teams’ minor rule-bending would soften the NBA’s response.
Hollinger stressed that routine violations, like early free agency talks, are incomparable to potential circumvention involving Kawhi Leonard’s Aspiration deal. He described the case as “beyond the pale” and widely regarded by executives as deserving of serious punishment.
Article XIII of the NBA rulebook outlines penalties, which include fines, draft pick forfeitures, suspensions, contract voiding, and returning illicitly received funds. Hollinger noted that voiding Leonard’s contract is the most direct but complex penalty.
The issue with voiding the contract, he explained, is its potential impact on both the Clippers and the broader league. Without Leonard’s $50 million cap hit for next season, the Clippers could gain substantial flexibility, possibly reshaping their roster or pursuing high-profile free agents like LeBron James.
Hollinger emphasized that other measures, including fines up to $7.5 million for the Clippers or $350,000 for Leonard, are also on the table. Suspension of team personnel and the requirement for Leonard to return Aspiration funds remain possible as well.
The ongoing investigation, led by law firm Wachtell, Lipton, Rosen & Katz, continues under NBA Commissioner Adam Silver’s guidance. Silver has consistently emphasized due process and the presumption of innocence while reviewing documents and financial transactions.
Clippers owner Steve Ballmer, who holds a minor stake in Aspiration, has denied any involvement with Leonard’s endorsement agreement. The team has maintained that all actions complied with NBA rules.
League insiders indicate that unless direct evidence ties the endorsement payments to salary cap circumvention, severe penalties are unlikely. However, Hollinger’s assessment suggests the NBA would not hesitate to impose maximum sanctions if violations are confirmed.
