NEW YORK -- NBA commissioner Adam Silver considers the investigation into the LA Clippers and Kawhi Leonard "closed" following a landmark penalty that included suspending owner Steve Ballmer for a year, fining the Clippers $30 million and stripping them of five first-round draft picks.
In his first public remarks since those penalties were announced earlier this month, Silver said a long discussion about the stewardship of the game took place at the league's board of governors meeting over the past two days.
"I think everyone in the room understands that part of the core responsibility of the league is to have a set of rules that everyone agrees to operate under, and the league's responsibility to enforce those rules," Silver said at his news conference Tuesday. "And that if those rules are found to be violated, there then will be appropriate consequences."
After initially disputing the league's findings, Ballmer issued a statement late Sunday accepting the punishment, saying "we are complying with the penalties assessed by the league, have paid the fine and are moving forward."
Ballmer and the Clippers also face a Department of Justice investigation, according to a report by The New York Times.
Silver said he spoke with Leonard, whom he fined $700,000 but did not issue a suspension to. While he wouldn't reveal the contents of the discussion, Silver said he and Leonard agreed to move forward. Leonard's trade from the Clippers to the Toronto Raptors, which has been delayed for months amid the investigation, was finalized Monday.
The penalty handed down by Silver ranks among the highest in NBA history, not dissimilar to the punishment late commissioner David Stern handed down to the Minnesota Timberwolves for circumventing the cap with free agent Joe Smith in 2000. Stern also stripped the Timberwolves of five first-round picks and suspended then-owner Glen Taylor and executive Kevin McHale for a year.
In the Timberwolves' case, however, Stern returned two picks years later. Silver wouldn't commit to repeating that concession, saying it hasn't been discussed with Ballmer.
"Because while there have to be competitive consequences, our view, if these rules are violated, we still want to be a 30-team league," Silver said. "And we recognize that in some ways, we're unfortunately punishing the fans of that team as well, and so that's the balance we're trying to seek.
"I don't think in any way we've done permanent damage to this franchise, but there's no question this is a setback for the team."
Silver strongly denied the belief that cap circumvention was something widespread across the NBA, saying he doesn't believe this is an indication that he and the league should be probing more into player deals with team sponsors.
"I've been around the league for decades," Silver said. "I pick up chatter here and there when other things are happening around the league. I've had lots of conversations with general managers, team presidents, owners as to the kind of conduct that goes on. We know around the lines there's been slippage over the years, but nothing of this nature that I'm aware of."
Potential expansion with Seattle and Las Vegas
Silver said there has been more discussion surrounding the possibility of expanding to Las Vegas than Seattle, stating there's "several active groups" in the bidding. Silver said the next-round bids will be coming shortly, but that those will not be the final bids, just the next step in the process.
"There's real excitement around T-Mobile Arena," said Silver, referencing the Las Vegas venue that houses several sporting events, including the NBA Cup for the first three years of its existence. "I think everyone acknowledges if a team were to stay there, it needs some significant improvements.
"But at the same time, there are groups who have presented plans to build what I would call a modern entertainment palace in Las Vegas. It's a unique market where you could truly see essentially 365-day-a-year activity."
Seattle, on the other hand, has a state-of-the-art arena in Climate Pledge Arena, but "It's a much longer timeline before we can throw the ball up for NBA basketball," according to Silver.
League officials told ESPN there is a scenario where expansion can involve either Las Vegas or Seattle, rather than both, as well as a scenario where the league doesn't expand -- although the latter feels unlikely. Silver reiterated wanting a final decision by the end of the calendar year.
Lakers' latest sale
Silver said Mark Walter, who is facing a federal investigation, was "fully vetted" before he purchased the Los Angeles Lakers from the Buss family in October for $10 billion. Walter agreed to sell the Lakers in a shocking move to a group led by Josh Kushner and Bob Iger for $12.5 billion last month. The sale came amid news that Walter was under investigation for allegedly using funds from his insurance companies illegally.
"We found no red flags," Silver said. "Again, even to this day, as you know, these are -- call them allegations. There are issues that are now being looked into. ... I had no prior notion that he was intending to sell his team until I heard from the buyers that they had a handshake [deal] with him."
NBA Europe
Silver believes the league is "making progress" with the target date of starting a 12-team league one year from now. Silver wants to join with the existing EuroLeague, and ongoing negotiations were discussed at the board of governors meeting.
A salary system, aggregating television rights and plans for multiple new arenas across Europe are on the docket, yet to be determined. Silver reiterated he wants to get it right and has tasked deputy commissioner Mark Tatum with heading up the process.
"I do think it's important that we introduce competition into the market next summer," Silver said. "The initial product you'd likely see a year from now will be different than when we ultimately will have brought all the teams together and are formally operating the league."
Portland arena
Silver addressed rumors that new Trail Blazers owner Tom Dundon would try to move the team from Portland if he doesn't get funding for a new arena, saying it would be a "failure" for the league if the city loses its team.
Since Silver has taken over stewardship in 2014, nearly half the teams have been sold but none have been relocated.
"I want to be very direct about it," Silver said. "I would see it as a failure if we did not keep the team in Portland. I've spent a lot of time in that community over the years. They've shown amazing support for the Trail Blazers. They're some of our best fans around the league."
The state of Oregon has already pledged $365 million toward the deal for a new arena, provided Portland contributes $120 million and Multnomah County also provides funds. Negotiations have become contentious, and Silver said he hoped "that we can lower the temperature honestly a bit."
New WNBA commissioner
Cathy Engelbert, who announced she is retiring after this season, was the first figure to hold the commissioner title in the WNBA's near three-decade run. Silver said that wasn't a symbolic gesture but one that signifies where the league is in its growth, and one he hopes to build on as she announced her retirement.
The NBA will hire a search firm to help look for her replacement, according to Silver.
"I oversee the greater organization, but Cathy had enormous independence in those areas -- player relations, when it came to overseeing collective bargaining discussions, certainly when it comes to potential rule changes in the WNBA," Silver said.
Silver also pointed out that record ratings, growth in salary and expansion has all happened under Engelbert's watch.
However, Engelbert has several critics, including many of the WNBA's players who say the league has thrived in spite of her leadership, not because of it. Silver believes the incoming commissioner will have his or her own ideas of the league's structure as it continues to grow.
"I think at least for now the WNBA is the beneficiary of the decades of experience of people in the NBA," Silver said. "I think also from a cost structure standpoint, not repeating certain core administrative functions separately for each league allows for cost savings and efficiency."
