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Pending reunion with Kawhi Leonard rewards Raptors, MLSE for rejecting absurd demands

Pending reunion with Kawhi Leonard rewards Raptors, MLSE for rejecting absurd demands



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Kawhi Leonard spent parts of his summer in Toronto, including taking in the National Bank Open tennis tournament last month.Dan Hamilton/Reuters

Too many pro athletes have an Uncle Dennis in their entourage, a family member or childhood friend who drops the ball after being trusted to take care of business while the player focuses on winning games.

Dennis Robertson, basketball star Kawhi Leonard’s uncle and now former business manager, had a well-earned reputation as a hustler in National Basketball Association circles.

On Wednesday, as part of sweeping sanctions against the L.A. Clippers, the NBA banned Robertson from engaging with any team, player or employee for five years over his role in the team’s circumvention of salary cap rules essential to league integrity.

Long before the hammer dropped, basketball insiders knew Robertson was making outrageous demands from potential employers. The shenanigans played out in 2019, when Leonard hit free agency after winning Finals MVP honours in the Toronto Raptors’ championship run.

The Raptors burnished their reputation among NBA players and in business circles by refusing to play the game by Robertson’s rules, then bringing back Leonard, a transcendent talent, to play in Toronto this season. He will join the team once a trade with the Clippers, agreed to in principle in June, is officially processed.

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For Larry Tanenbaum, chair emeritus at Raptors parent Maple Leaf Sports & Entertainment, or MLSE, Leonard’s return helps vindicate a career spent trying to win the right way.

For Rogers Communications Inc. executive chair Edward Rogers, Leonard’s arrival adds sizzle to a sales pitch, as the telecom titan tries to raise money and pay down debt by selling institutional investors on a minority stake in pro sports assets the company values at $25-billon.

Leonard’s face, and legendary series-winning shot against the Philadelphia 76ers, will undoubtedly feature in Rogers’ marketing campaign to the world’s largest fund managers.

Wednesday’s announcement of penalties against the Clippers, after a year-long investigation by law firm Wachtell, Lipton, Rosen & Katz, confirms what has long been whispered in NBA circles.

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Leonard, right, signed with the Clippers immediately after he led the Raptors to the 2019 NBA title.Frank Gunn/The Canadian Press

The Raptors, L.A. Lakers and Clippers, according to the law firm’s report, all had Robertson make “numerous requests for benefits that were prohibited under the Collective Bargaining Agreement, including equity in teams, housing, access to private transportation, and off-court income such as endorsement deals.”

Raptors owners, in a top-of-house decision that went to Tanenbaum and Rogers, said no to Uncle Dennis. They were willing to make Leonard fabulously wealthy. They weren’t willing to break the rules.

Clippers owner Steve Ballmer, by far the richest owner in the NBA courtesy of his years as CEO of Microsoft Corp., said yes to much of what Uncle Dennis demanded, according to the league.

Robertson targeted US$10-million in endorsement income for Leonard, on top of a basketball contract that will earn Leonard US$50.3-million next season. The Clippers made it happen.

Leonard made tens of millions of dollars on deals with four companies that did business with the Clippers. Three of the companies paid US$18-million to Leonard without him doing a lick of work. The report said: “Mr. Leonard’s only confirmed activity under any of the agreements was a visit to a military base on a single occasion under one agreement and signing some memorabilia under another.”

On Wednesday, NBA commissioner Adam Silver announced penalties against the Clippers that included the loss of five first-round draft picks – the life blood of an NBA team – and a US$30-million fine.

Ballmer, a member of the NBA’s board and a courtside fan, is suspended from all league activities for one year. The NBA said the billionaire is sidelined for “knowingly seeking to help Mr. Leonard obtain off-court income opportunities.”

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Leonard attended Kyle Lowry’s retirement press conference in July, shortly after the Raptors and Clippers agreed to trade terms.Chris Young/The Canadian Press

As Leonard prepares to suit up for the Raptors this season, the final year of a US$149.5-million, three-year contract, he is owning what his uncle did, while paying a pittance to resolve his sins.

Robertson became a mentor to Leonard after the then 16-year-old’s father was murdered at the car wash he owned. As part of the NBA’s sanctions, Leonard will pay the league US$700,000 for travel, tickets and gifts he received and never paid for.

On Wednesday, through a statement issued by his new agent, Leonard said he accepted “full responsibility for lapses in judgment by people within my inner circle and regret the distraction this situation has caused the fans and my family.”

Leonard, who kept a low public profile during his first stint with the Raptors, has been out-and-about with the team during the off-season. This summer, the L.A. native stood next to Tanenbaum, both smiling ear-to-ear, at a news conference that saw former Raptors point guard Kyle Lowry rejoin the team for a day in order to retire a Raptor.

“As I return to Toronto, I am focused on what I can control, closing this chapter, and moving forward with a clean slate,” said Leonard in his statement on Wednesday.

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Landing an NBA superstar on a team that has struggled to sign free agents in the past says all the right things about the Raptors culture.

For Tanenbaum, who is expected to sell his stake in MLSE to Rogers for $4.35-billion this fall, Leonard’s return is a bittersweet parting gift. For Rogers, the Raptors’ return to relevance couldn’t come at a better time.