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Did Kawhi Leonard get light punishment to head off arbitration?

Then-Los Angeles Clippers forward Kawhi Leonard (2) shoots past Golden State Warriors guard Stephen Curry (30). IMAGN IMAGES via Reuters Connect

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Did Kawhi Leonard get light punishment to head off arbitration?

By Sean Keane | Last updated Sep 2, 2026 9:01 PM ET

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The Los Angeles Clippers drew a massive penalty from the NBA for facilitating illegal endorsement deals for Kawhi Leonard. Leonard himself? Not so much.

Leonard immediately accepted his punishment, a $700K fine that's far less than the extra money he received through his secret business deals. He might have gotten off easy to keep the Players Association — and the Clippers — from going to arbitration.

Los Angeles Clippers may not have options to challenge NBA's ruling

Salary cap circumvention is a violation of the NBA's collective bargaining agreement, which involves both the league and the NBAPA. The parties have to agree on any punishment, or the CBA allows for an arbitration hearing.

However, Leonard issued a statement where he accepted "full responsibility for lapses in judgment by people within my inner circle." It's not the statement of someone who appears likely to appeal his fine, especially since $700K represents less than 1.4 percent of next year's salary.

In this Instagram statement, Kawhi Leonard indicates that he expects to be officially traded to Toronto now that the league has assessed a broad series of sanctions against the Clippers in the wake of a yearlong investigation conducted by Wachtell, Lipton, Rosen & Katz: pic.twitter.com/Q5IZCtDbDb
— Marc Stein (@TheSteinLine) September 2, 2026

If a player isn't challenging the discipline he received from the league, there's no reason for his union to do so. Which means there's no way for the Clippers to appeal or arbitrate the league's decision to suspend owner Steve Ballmer and two Clippers executives, fine the team $30M and take away five first-round picks.

According to a source with knowledge - there is no appeal/arbitration process for the Clippers to pursue with the NBA. It's not a right teams have. The NBPA could've pursued arbitration, but it accepted findings and punishments. They'd need relief elsewhere. https://t.co/ifewhbUeIE
— Dan Woike (@DanWoikeSports) September 2, 2026

Kawhi Leonard got another sweetheart deal

In the NBA's biggest case of salary cap circumvention before this one, the Minnesota Timberwolves were also docked five first-round picks and had owners and executives suspended. But in that case, the NBA also voided the illegal contract of Joe Smith, making him a free agent and ensuring the Wolves didn't keep his Bird rights.

That's not the case with Leonard, who escapes to the Toronto Raptors with his $50.3M contract intact. The NBA may have been fearful of the resources of Ballmer, the NBA's wealthiest owner, in an extended legal process. Negotiating a punishment that Leonard would accept means that the Clippers can promise to "vigorously challenge" the league's ruling, but it's not clear where and how they'd do so.

It's akin to when prosecutors give a reduced sentence to a low-level offender in order to nail his bosses. To really nail the Clippers, the NBA may have had to let Leonard off easy.

After getting four different endorsement deals that paid him tens of millions and required almost no work, Leonard got a sweetheart deal from the NBA. He may have two Finals MVP trophies, but escaping this saga down just $700K might be the biggest win of Leonard's career.

Sean Keane

Sean Keane is a sportswriter and a comedian based in Oakland, California, with experience covering the NBA, MLB, NFL and Ice Cube’s three-on-three basketball league, The Big 3. He’s written for Comedy Central’s “Another Period,” ESPN the Magazine, and Audible. com

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