Wednesday afternoon the NBA announced the punishments dropping on Kawhi Leonard, the LA Clippers and Steve Ballmer as a result of the months-long investigation into cap circumvention. There are big winners and big losers all around.
The Cleveland Cavaliers are not one of them.
For the most part, the Cavaliers had nothing to do with the investigation, the wrongdoing or the punishments. With that being said, everything in the NBA is interconnected, so there will be a few shockwaves that extend out to Cleveland as a result of this gigantic hammer coming down on another NBA franchise.
The punishment was severe
The NBA took its time investigating whether the Clippers circumvented the league's salary cap by funneling money through other entities in endorsement deals to augment Kawhi Leonard's salary. The brilliant reporting done by Pablo Torre kicked this off, and over time more and more evidence came out that suggested the Clippers truly did break the rules.
The NBA agreed, as they leveled severe punishments on Wednesday. The Clippers were stripped of five first-round picks and fined $30 million. Owner Steve Ballmer and LA's President of Business Operations were suspended for a full year. President of Basketball Operations Lawrence Frank was suspended for 6 months. Leonard himself got a slap on the wrist by way of a $700,000 fine.
The Clippers have indicated that they will fight the ruling, but it's unclear what mechanisms they have to change any of these punishments.
What does it mean for the Cavaliers?
No penalties were directed toward other NBA teams, as expected. However, there are certainly ways that this ruling impacts other teams.
The Toronto Raptors come out as big winners. They waited to execute the trade they agreed to for Kawhi Leonard, and nothing from Wednesday's announcement will stop them from making the deal in any way. Leonard is not facing a suspension or the nullification of his contract, and the Clippers desperately need the two first-round picks coming their way.
Speaking of draft picks, however, that is the first way that the Cavaliers will benefit from this ruling. The Clippers were stripped entirely of their first-round picks for five consecutive seasons. That means that every team picking behind them in the draft order will move up one spot. Given that LA was already entering something of a retooling, and that they will not have the assets to add to their team, they will almost certainly be higher than Cleveland in the draft order.
That means that for as many as five consecutive seasons, the Cavaliers will get to move up one slot in the draft. A small benefit, to be sure, but a real one.
There is also a scenario where the NBA allowed the Clippers to get away with this, which would have only emboldened other teams to do the same. Rivals of the Cavaliers seeking to recruit free agent stars could have offered under-the-table deals to entice players to sign with them. That possibility has been shut down with a vengeance, which benefits teams whose core of stars is already in place - like Cleveland.
For the most part, this harsh punishment does not directly impact the Cavaliers. The ripples eventually get to them. But they certainly received a clear message from Adam Silver and the league office: don't break these rules.
And Cleveland will come out of it all as teensy tiny winners, while the Clippers are perhaps the biggest losers the NBA has ever seen.
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