The NBA has handed down extraordinary penalties against the LA Clippers and Kawhi Leonard after concluding its investigation into salary-cap circumvention.
The league announced Wednesday that an independent investigation found a pattern of misconduct and multiple significant rule violations involving the Clippers' efforts to help Leonard obtain off-court income.
The punishment is severe.
Los Angeles will forfeit five consecutive first-round draft picks from 2029 through 2033 and has been fined $30 million.
Clippers owner Steve Ballmer has also been suspended from all league and team activities for one year.
Kawhi Leonard has been ordered to pay the NBA $700,000.
Clippers Lose Five First-Round Picks
The biggest long-term consequence could be felt for years.
The Clippers will forfeit their first-round selections in each of the following drafts:
2029
2030
2031
2032
2033
Losing five consecutive first-round selections represents an enormous blow to the franchise's ability to build for the future.
It is reminiscent of the punishment handed to the Minnesota Timberwolves following the Joe Smith salary-cap scandal more than 25 years ago.
But draft picks are only one part of the punishment.
The Clippers have also been fined $30 million and will operate under a compliance and monitoring programme overseen by the NBA for the next five years.
Steve Ballmer Suspended for One Year
Clippers owner Steve Ballmer has been suspended from all league and team activities for one year.
The NBA said Ballmer knowingly sought to help Leonard obtain off-court income opportunities and approved a business arrangement that was a precondition for Aspiration to enter into an endorsement agreement with Leonard.
The league also cited Ballmer's failure to create conditions in which the Clippers organisation complied with the NBA's salary-cap circumvention rules.
President of Basketball Operations Lawrence Frank has been suspended without pay for six months.
Clippers President of Business Operations Gillian Zucker has received an even longer punishment, being suspended without pay for one year.
What Did the NBA Find?
The investigation was conducted independently by law firm Wachtell, Lipton, Rosen & Katz.
According to the NBA, investigators found that the Clippers initiated off-court income opportunities between Leonard and four companies doing business with the organisation.
Those companies were Aspiration Partners, Boingo Wireless, Daktronics and Lockton Insurance.
The league said the Clippers facilitated endorsement agreements between those companies and Leonard and offered team business as an incentive for companies to enter into arrangements with him.
Investigators also found that the Clippers paid personal expenses on behalf of Leonard and his representatives.
The organisation additionally failed to report improper requests for off-court income opportunities made on Leonard's behalf.
Kawhi Leonard Also Found to Have Violated NBA Rules
The league did not limit its findings to the Clippers.
Leonard was also found to have violated salary-cap circumvention rules through the conduct of his then-business manager, Dennis Robertson.
According to the NBA, Robertson pressured the Clippers to assist Leonard in obtaining off-court income opportunities.
Leonard subsequently benefited from those opportunities and failed to reimburse payments made by the Clippers for personal expenses.
Leonard has been ordered to pay $700,000 to the league as a result.
Robertson has received an even more significant punishment.
He has been banned for five years from conducting business or otherwise engaging with NBA teams and their affiliates on behalf of players or other league personnel.
One of the NBA's Most Severe Punishments
The scale of the punishment demonstrates how seriously the NBA has treated the violations.
Five first-round selections.
A $30 million fine.
A one-year suspension for the team's owner.
Further suspensions for two senior Clippers executives.
Financial punishment for Leonard.
And five years of league oversight.
NBA Commissioner Adam Silver described the violations as flagrant and said the severity of the punishment reflected both the seriousness of the misconduct and failures within the Clippers' leadership.
The NBA and National Basketball Players Association have agreed that the penalties are final and binding.
The independent investigators may not be completely finished, however.
The NBA said the law firm responsible for the investigation continues to receive relevant information and that the league will consider further action if appropriate.
For the Clippers, the consequences of this investigation could therefore stretch far beyond Wednesday's announcement.