NBA investigating whether salary cap was violated
Published 12:00 am Thursday, July 25, 2019
The NBA has begun an investigation into how teams handled free agency this summer, focusing on whether improper inducements were offered to players to circumvent the salary cap, according to a person with direct knowledge of the situation.
The issue was raised by multiple team owners at a meeting of the league’s board of governors this month in Las Vegas, according to the source, who requested anonymity because of a lack of authorization to speak publicly on the subject.
ESPN first reported on the existence of the investigation.
Also, multiple reports this month suggested that Kawhi Leonard’s representatives, in arranging his blockbuster move from the Toronto Raptors to the Los Angeles Clippers, had asked for perks that would violate the league’s collective bargaining agreement.
ESPN commentator Stephen A. Smith, citing “people in NBA circles,” said on the air that Leonard’s uncle — Dennis Robertson (known in NBA circles as “Uncle Dennis”) — had asked other teams for houses, planes and guaranteed sponsorship money. Smith added, “I have no idea whether this is true or not.”
In another report, The Sports Network in Canada said Robertson had asked for “things players don’t generally ask for in standard contract negotiations,” without specifying what those things might be.
It is unclear what the scope of the investigation is, or whether the league, which declined to comment, is acting on information other than reports in the news media. The investigation follows one of the most tumultuous offseasons in NBA history, with numerous high-profile players switching teams.
The NBA is also exploring whether it needs to change its rules against tampering. Several players committed to signing with a team as soon as free-agency negotiations officially opened at 6 p.m. on June 30 — even though teams were not allowed to begin recruiting before then. League rules prohibit players, coaches and front-office executives from enticing an athlete under contract with another team to come play for their franchise.
Commissioner Adam Silver said during an interview with Sports Illustrated in April that he did not think tampering was significantly worse today than in the past. But after the spirited board of governors meeting, Silver acknowledged that changes might be necessary. He cited increased coverage of the league and communication through social media as reasons why teams and players might feel pressure to push the established boundaries.
“I think it’s pointless at the end of the day to have rules that we can’t enforce. I think it hurts the perception of integrity around the league,” Silver said at a news conference in Las Vegas. He added later, “My sense in the room today was, especially when it comes to free agency and the rules around it, that we’ve got work to do.”
A number of deals seemed to be completed at breakneck speed. Kemba Walker committed to the Boston Celtics and Kyrie Irving to the Brooklyn Nets almost immediately when free agency began, and the likelihood of the moves was essentially known for days.
Also close to the time free agency started, Kevin Durant posted a video on Instagram announcing his decision to leave the Golden State Warriors and become a Net. The video appeared on the account of “The Boardroom,” Durant’s sports business channel.
Several news media reports indicated that his teaming up with Irving had long been in the works.
The New York Times reported last month that representatives for Leonard, now the centerpiece of the Clippers, had made it known that he was interested in teaming up with Jimmy Butler, who was becoming a free agent. In addition, according to an ESPN report, Leonard tried to recruit Durant days before he officially committed to the Nets.
(Nets general manager Sean Marks said at NBA Summer League that Durant had committed on Instagram before ever meeting with the team.)
On ESPN’s website, testimonials from two players — the Milwaukee Bucks’ Khris Middleton and the Philadelphia 76ers’ Tobias Harris — were posted within minutes of each other at about 7 p.m. Eastern time on June 30, an hour after free agency technically began, to explain why they were staying with their teams.
Agents for several other players, including Jonas Valanciunas, Terrence Ross and Gerald Green, confirmed to The Times, ESPN, The Athletic and other outlets that their players had committed to teams within minutes of free agency opening. Bobby Portis told The Athletic that the New York Knicks had reached out to set up a meeting a full five days before free agency began.
“The one strong conviction I have is that we should not have rules that are not strictly enforced,” Silver said in Las Vegas. “We know that’s the case right now. Whether that’s by virtue of practice, whether it’s because just the world around us has changed, whether it’s because players have power that they didn’t used to have, I’m not so sure.”
There is some precedent for under-the-table deals that break league rules. It was discovered that Joe Smith, a No. 1 draft pick who played in the NBA from 1995 to 2011, had signed short-term deals with the Minnesota Timberwolves for less than his market value, with a secret promise that he would eventually get a more lucrative contract. The NBA handed down what at the time was the harshest penalty ever from an American sports league: a $3.5 million fine and the stripping of five Minnesota first-round draft picks.