[Pablo Torre] Steve Balmer paid Kawhi Leonard under the table to avoid salary cap

Why can't they just make Kawhi show up in a lame commercial for like 2 sec (amid other endorsers) and avoid the fraud label altogether? $7mil for 2 sec work is still work, are they too lazy even for that?

 

It doesn't even matter. They have to prove in writing or testimony from someone associated with the company that this was all a way to circumvent the cap. If the company never chose to exercise any option to have Kawhi do promotional work, that's technically the company's prerogative. Doing no work versus doing a 2 second spot is not materially different.

Ultimately offers to promote companies being tied to specific teams isn't new. And while this probably was a fake company designed to circumvent the cap and should be punished, it'll be hard to actually prove. Contracts are written that give the company optionality in how and when promotions are done. If the company just chooses not to do any promotions, that doesn't run afoul of anything.

 

Honestly, this is worse if it holds true. Smith's deal was honestly something that seems reasonable. A promise of a future payday when they could offer it to him (I assume it was in writing though). Not secret payments. Joe Smith was the big loser in that whole ordeal as it cost him millions.

The penalties are primarily set by the CBA. Violating salary cap is $4.5M + 1 1st rounder. Secret agreements have a fine of $7.5M, forfeiture of picks, and suspension of personnel.

I think Kwahi's contract gets voided. Balmer is suspended for one year. They don't control their own pick until 2030, making it harder to punish them via draft penalties, though 2 of those are for pick swaps.

 

So, now I’m wondering if Tilman will get into trouble for handing out 50% off coupons to Joe’s Crab Shack to Rockets players?

 

The NBA must have some rules about this. It's just too easy to get around cap restriction if this kind of thing is allowed.

 

Waiting when will the Warriors Owners and Stephen Curry be exposed for under the table money. Stephen Curry was really underpaid.

 

It's just NIL for NBA players. I hope the league cracks down on this but I am very skeptical. Maybe some employees come out and testify that this was explicitly an attempt to bypass the cap but if no one snitches (or maybe something in writing emerges). Otherwise, I just don't see how they'll get punished.