SEATTLE — Adam Silver said there has been no movement on NBA expansion after yet another meeting of the NBA Board of Governors.
He also said the league has launched an investigation into former Microsoft CEO and LA Clippers owner Steve Ballmer, regarding allegations he avoided league salary cap rules with the signing of Kawhi Leonard.
The NBA Board of Governors is made up of league owners and representatives, and meets routinely on league business. Silver normally addresses the media on those business matters after the meeting.
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“I think there are independent people looking at potential domestic expansion and then others looking at opportunities in Europe, and I see them as completely independent opportunities,” Silver responded after a question from ESPN’s Tim Bontemps about the league’s interest in international expansion versus domestic expansion.
“The fact is no new news to report today on domestic expansion, but it’s something we continue to look at,” Silver added. “We did discuss it at the board meeting. I think that we’ve spent a fair amount of time on the economic models around expansion. We’ve gotten into more of, I’d say, a deeper dive than when I last addressed the media on it. Certainly, now that we know what our media contracts are. That helps in doing the math, at least over the next decade. Part of the difficulty in potentially assessing it is a sense of long-term value of the league, and a little bit, maybe it’s a high-class problem, but as with some of the recent jumps in franchise valuations, that sort of creates some confusion in the marketplace about how you might even price an expansion franchise. So I’ll only say it’s something that we continue to actively look at.”
“But to the extent anyone has taken from me a suggestion that Europe is more a priority than potential expansion in the U.S., it’s not the case. I view it as two independent work streams here,” said Silver.
The biggest news was the fact that the NBA is probing Ballmer—the wealthiest owner in the league—over his handling of the signing of Leonard.
Pablo Torre, a longtime reporter and podcaster, broke a story about the connections between Ballmer, a now-defunct startup, and Leonard’s endorsement deal. The reporting circled around whether the startup was used to circumvent league salary cap rules.
Silver was asked repeatedly about it by reporters.
“When the podcast came out, it was news to me,” Silver said. “I’d frankly never heard of the company Aspiration before, and I’d never heard a whiff of anything around an endorsement deal with Kawhi or anything around engagement with the Los Angeles Clippers. So it was all new to me. I heard it. I saw some of the follow-up information.”
“We spoke internally,” Silver added. “Rick Buchanan, our general counsel, is here, who oversees any investigations. Rick had a conversation with Steve Ballmer, and we quickly concluded this was something that rose to the level that necessitates an investigation, and in fact one that’s done outside of our office. Wachtell Lipton, the New York law firm that we’ve used in the past for investigations like this, is overseeing it.”
Silver also said he’s a “big believer in due process and fairness, and we need to now let the investigation run its course.”
Although he didn’t lay out a plan for punishment, he discussed potential penalties.
“My powers are very broad,” Silver said. “Full range of financial penalties — draft picks, suspensions, et cetera. I have very broad powers in these situations.”
Ballmer bought the Clippers in 2014 in a then-record $2 billion sale.