Report: Massive Penalties Coming for Clippers on Cap Circumvention Controversy

March 12, 2026


The NBA is getting closer to making its decision on discipline for the Los Angeles Clippers and Kawhi Leonard over the alleged cap circumvention affair. We heard last month about the potential for Kawhi's contract to be voided. Now we're getting word that the Clippers could be punished with some franchise-crippling draft pick penalties. 

Frank Isola of NBA Radio on SiriusXM today said he's hearing that the Clippers could lose THREE first-round picks and be fined more than $30 million. 

With allegations becoming public that Leonard signed an endorsement deal that was essentially a sham designed to pay him outside of his official contract, the NBA has been investigating the scandal for the past several months. 

Specifically, the allegations are that the LA Clippers circumvented the salary cap by funneling payments to Leonard through an endorsement deal with Aspiration, a sustainability company. Reports suggest Leonard received a $28 million, four-year deal and $20 million in stock for limited to no work at all, potentially acting as an illegal "no-show" payment. 

Penalties could be levied against Leonard, Clippers owner Steve Ballmer, and/or the team as a whole. 

Kawhi, meanwhile, is naturally tuning it all out, and having one of his best seasons in years, averaging a career high 28.3 points per game, along with 6.4 rebounds, 3.8 assists, and a 38% rate from three point range. He's played in 51 of the Clips' 65 games, which puts him on pace for his second-highest games-played total in his seven years in Los Angeles.

The Clippers are currently sitting 8th in the Western Conference playoff race, one game up on the Warriors, with a 33-32 record. LA is riding a three-game win streak.

Photo: © Gary A. Vasquez-Imagn Images

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