High financial toll for Kawhi: Clippers could potentially overspend compared to Leonard's value
In a shocking turn of events, the Los Angeles Clippers and their owner, Steve Ballmer, are under investigation by the NBA for alleged salary cap circumvention in the signing of Kawhi Leonard.
The investigation, led by a hired law firm, has been sparked by allegations that Ballmer set up a no-show job for Leonard to pay him more than the NBA's salary cap allowed. If found guilty, Ballmer's actions could be considered highly illegal activity by the NBA.
The controversy began when Leonard demanded that the Clippers acquire Paul George from the Oklahoma City Thunder before signing with the Clippers. This demand led to a trade that sent Shai Gilgeous-Alexander, Danilo Gallinari, and multiple first-round draft picks to the Thunder in 2019. The Clippers lost access to Gilgeous-Alexander, a promising player who is now with the Thunder.
The potential penalties for the Clippers could be severe. They include fines, loss of draft picks, voiding of Kawhi Leonard's contract, suspensions, and leaves of absence for team officials. The potential loss of future draft picks could be a substantial hit for the Clippers, given that they traded five first-round picks to acquire Paul George in 2019, bringing the total number of first-round picks Leonard has cost the franchise to eight.
The Kawhi Leonard era has been a basketball disappointment for the Clippers, despite the team's value increasing significantly under Ballmer's ownership. The Clippers' value has increased from $2 billion to more than $5 billion since Ballmer took over. However, the potential consequences of the ongoing investigation could impact the team's future.
Interestingly, the Thunder, who now have Gilgeous-Alexander, have a championship that the Clippers have never won with Kawhi Leonard. The voiding of Leonard's contract could potentially lead to him joining a contender this season for the league minimum. However, this is a speculative outcome at this point.
It's worth noting that the Timberwolves faced similar penalties in 2000 for a similar salary cap violation, losing five future first-round picks and facing a $3.5 million fine, among other penalties.
In a separate development, it was also reported that Kawhi Leonard received $28 million in cash and $20 million in shares from Aspiration, a now-bankrupt sustainability company, which was funded by a $50 million cash surge from Steve Ballmer.
As the investigation continues, the future of the Los Angeles Clippers hangs in the balance. The potential penalties could take a long time to recover from, potentially taking longer than they ever could've envisioned when they signed Leonard six summers ago.
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