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Topics: NBA, Basketball
James Taylor
LA Clippers could face a massive punishment if the Kawhi Leonard salary cap saga does not go their way.
Leonard is at the centre of mounting speculation over a potential breach of the NBA's pay regulations. Journalist Pablo Torre alleged that the Clippers star was improperly paid in an attempt to circumvent the league's salary rules.
The Clippers franchise and majority owner Steve Ballmer have denied any wrongdoing. The league has launched an investigation into a $28 million endorsement contract between Leonard and Aspiration Fund Adviser, LLC.
If the Clippers are found to have violated the rules, there are a range of punishments they could face. In the NBA, teams operate under a collective bargaining agreement (CBA) that sets out league rules.
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Article XIII of the agreement deals with salary cap regulations, prohibiting teams from making deals that violate the cap, or making payments outside a player's main contract.
The most dramatic punishment would be to void Leonard's contract and prohibit him from re-signing with the Clippers.
But that is complicated, as The Athletic reported. Despite his enduring quality, Leonard has struggled with injuries since he joined the Clippers in 2019.
And with the two-time NBA champion set to earn $50 million next year, some might see voiding the contract as a way for the Clippers to free up space on their roster.
It is unlikely the league would void the contract while still keeping the $50 million contract on the Clippers' cap for 2027, but the CBA does not provide clear guidance on that scenario.
With the investigation likely months away from a conclusion, Leonard potentially becoming a free agent halfway through the season could be hugely disruptive to the league.
But there are several alternative punishments on the table, primarily relating to finances.
Leonard could be fined up to $350,000, the Clippers franchise up to $7.5 million and Ballmer up to $1 million, while the owner could also face a suspension. However, those fines would make little impact, given Ballmer's net worth of over $150 billion and the Clippers' valuation of $5.5 billion.
The NBA could also require Leonard to return the money he received from Aspiration if the allegations are proven.
A sporting punishment is also possible, such as forcing the Clippers to forfeit draft picks in future years.
It remains to be seen what penalties the Clippers, Ballmer and Leonard might face, but league commissioner Adam Silver will likely want to establish a strong precedent to prevent similar issues in the future.