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Clippers Send Letter To Adam Silver As They Explore 'Every Legal Remedy To Address This Gross Injustice'

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The Los Angeles Clippers released a letter they sent to Adam Silver in response to the NBA's decision to strip the franchise of five first round picks as well as issue suspensions to Steve Ballmer, Gillian Zucker and Lawrence Frank.

"Dear Commissioner Silver:

"Almost one year ago today, you announced that the league would be investigating podcast allegations that the Los Angeles Clippers engaged in salary cap circumvention by funneling money to Kawhi Leonard through a "no-show" contract with a Clippers sponsor, Aspiration. In announcing that investigation, you represented that "due process" and "a fundamental sense of fairness" would govern the process. You made clear that the "burden [would be] on the league" to prove any violation through actual evidence, not "mere appearances." And you concluded by promising that everyone involved in the investigation would be treated "the same way I would want to be treated if people were making allegations against me."

"Unfortunately, none of those promises have been kept. In the last year, Steve Ballmer has spent nearly $50 million funding an investigation by Wachtell, Lipton, Rosen & Katz that has stretched far beyond the bounds of what the league set out to investigate, let alone the bounds of "fundamental fairness." The Clippers have produced more than 30,000 documents and provided more than 20 witnesses who have sat for 30 interviews. Third parties, including Clippers business partners and sponsors, have likewise provided documents, interviews, and statements to investigators. Mr. Ballmer has reimbursed the costs of at least six law firms, many of which were hired at the demand of the league's lawyers. To say the investigation has been a distraction would be an understatement-Clippers employees have spent thousands of hours scouring document repositories, phones, messaging systems, central files, and accounting records, working with counsel, and sitting for interviews. This investigation has permanently strained relationships with key Clippers stakeholders.

"And Mr. Ballmer's reputation has been irreparably damaged as he now finds himself embroiled not only in this heavily biased investigation, but in civil litigation, the Aspiration bankruptcy proceeding, and more. It seems increasingly likely that Mr. Ballmer will spend years defending himself and the team against a podcaster's baseless claims. We have already detailed for Wachtell our concerns about the ways in which this process was designed to substantiate a predetermined outcome. But suffice it to say that you would not want to be treated the way that Mr. Ballmer and Clippers personnel have been treated during the past year. To what end? League counsel has acknowledged in our discussions that the league does not believe there was an agreement between the Clippers and Aspiration to funnel money to Kawhi Leonard. League counsel also agreed with the Department of Justice, the Securities and Exchange Commission, and a federal judge that Mr. Ballmer was a victim of Joe Sanberg's fraud-not a participant. Nonetheless, with less than an hour's warning, and no opportunity to respond, the league has issued a report and accompanying press release purporting to conclude the exact opposite of what it has said privately. None of this comports with any "fundamental sense of fairness."

"Instead, the league is intent on punishing Mr. Ballmer and the Clippers based on an entirely new theory: that the Clippers introduced Kawhi Leonard, at his request, to certain team vendors and sponsors. Wachtell has known about these introductions for months, yet raised them only at the eleventh hour-a pivot that demonstrates the league's predetermined decision to reach an adverse finding here. But more importantly, and as you well know, such introductions are both proper and commonplace in the league. We are confident that if the league spent $50 million investigating any team, it would find plenty of instances of team personnel making introductions to both sponsors and vendors in response to player requests. That is unsurprising because no league rule prohibits teams from making such introductions. Indeed, the Clippers' agreement to introduce Kawhi Leonard to team sponsors and vendors was the subject of a league investigation conducted more than seven years ago-an investigation that was concluded with no penalty or finding of wrongdoing. And as you know, high-ranking league officials, including Rick Buchanan, knew the Clippers were making introductions like these, in response to a player's requests, and raised no concerns about that approach. There is no due process in relitigating the league's prior investigation and finding fault with behavior that the league knew about back in 2019. And retroactively punishing the Clippers for violating a rule that never existed is hardly consistent with due process.

"Even worse, this investigation and report are harming third parties-Clippers' sponsors Boingo Wireless, Daktronics, and Lockton, to name a few-some of whom have reported to us that they were threatened if they declined to provide the information the league demanded, whose goodfaith efforts to cooperate were disregarded if the information they provided did not align with the league's predetermined conclusions, and whose confidential business arrangements have been included in a public report without proper consideration for their confidentiality.

"This investigation has been flawed from the outset. And your decision to issue this report without any notice to the Clippers or their counsel is inexcusable. This type of witch hunt flies in the face of fundamental fairness and of the integrity of the league and of this sport that we all love. We are exploring every legal remedy to address this gross injustice.

"Sincerely,
/s/ David N. Kelley
David N. Kelley
of O'MELVENY & MYERS LLP"

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