Submission + - NBA Suspends Steve Ballmer for 1 Year, Fines Clippers $30M for Salary-Cap Scheme
theodp writes: GeekWire reports, "The NBA dropped the hammer on Los Angeles Clippers owner Steve Ballmer on Wednesday, suspending the former Microsoft CEO from all league and team activities for one year and fining the franchise $30 million following a year-long investigation into illegal salary-cap circumvention involving star forward Kawhi Leonard. The sweeping sanctions mark one of the most severe punitive actions taken against an owner in modern sports history. Beyond Ballmer’s ban and the team fine, the Clippers were stripped of five consecutive first-round draft picks (2029 through 2033), several team executives were suspended, and Leonard was ordered to pay $700,000 in restitution. Leonard’s uncle and advisor, Dennis Robertson, was also banned from league activity for five years."
"Central to what the NBA identified as a salary-cap evasion scheme was Aspiration, a green-banking tech startup that filed for bankruptcy after its co-founder pleaded guilty to a $248 million fraud. Shortly after signing Leonard to a $176 million contract extension in 2021, Ballmer personally poured $50 million into Aspiration, while the team landed a $300 million sponsorship deal and Leonard secured a multimillion-dollar endorsement contract with the firm."
Given today's events, looking prescient in retrospect is a 2014 Deadspin item that quipped, Steve Ballmer Practiced Being Owner With His Son's High School Team, which took note of a Seattle Times investigation into "incoming Clippers owner Steve Ballmer's foray into the shady world of high school prep sports and the wealthy parents living vicariously through their kids." Summarizing Ballmer's aggressive find-a-way-to-win maneuvers, Deadspin wrote, "Ballmer's son's basketball team at Lakeside School in Seattle [which Bill Gates once attended] sucked, and he wanted to make it un-suck. So he created a non-profit as a way to pump money and talent into the school, got friendly faces coaching positions, and pushed for an administration-wide commitment to athletics at the expense of academics. He was basically the owner of Lakeside basketball."
"Central to what the NBA identified as a salary-cap evasion scheme was Aspiration, a green-banking tech startup that filed for bankruptcy after its co-founder pleaded guilty to a $248 million fraud. Shortly after signing Leonard to a $176 million contract extension in 2021, Ballmer personally poured $50 million into Aspiration, while the team landed a $300 million sponsorship deal and Leonard secured a multimillion-dollar endorsement contract with the firm."
Given today's events, looking prescient in retrospect is a 2014 Deadspin item that quipped, Steve Ballmer Practiced Being Owner With His Son's High School Team, which took note of a Seattle Times investigation into "incoming Clippers owner Steve Ballmer's foray into the shady world of high school prep sports and the wealthy parents living vicariously through their kids." Summarizing Ballmer's aggressive find-a-way-to-win maneuvers, Deadspin wrote, "Ballmer's son's basketball team at Lakeside School in Seattle [which Bill Gates once attended] sucked, and he wanted to make it un-suck. So he created a non-profit as a way to pump money and talent into the school, got friendly faces coaching positions, and pushed for an administration-wide commitment to athletics at the expense of academics. He was basically the owner of Lakeside basketball."