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Five first-round picks gone after massive punishment handed out - and Lou Lamoriello's old cap case is back


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Daniel Lucente
September 2, 2026  (4:41 PM)
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MLSE chairman Larry Tanenbaum talks to Toronto Maple Leafs general manager Lou Lamoriello as New York Yankees general manager Brian Cashman looks on while they watch the Toronto Raptors play against the Phoenix Suns at Air Canada Centre. The Suns beat the Raptors 115-103.
Photo credit: IMAGN IMAGES via Reuters Connect

Lou Lamoriello and the Devils once faced NHL punishment for cap circumvention with Ilya Kovalchuk, a case revived by the Clippers NBA ruling.

The NBA just handed down one of the harshest penalties in modern sports history, and hockey people immediately thought of a case that still lives rent free in NHL circles.
Steve Ballmer and the Los Angeles Clippers were stripped of five first round picks, fined $30 million and hit with suspensions for Ballmer, Lawrence Frank and Gillian Zucker after a yearlong salary cap circumvention probe involving Kawhi Leonard.
Leonard has to pay $700,000 in restitution tied to improper benefits given to his uncle and former business rep Dennis Robertson, who is now banned from all NBA business dealings.
No suspension or contract void for Leonard himself.
The scale of it drew instant comparisons to the last time a major North American league came down hard on cap circumvention, back when Lou Lamoriello ran the New Jersey Devils in 2010.

How the Kovalchuk case unfolded

Lamoriello signed Ilya Kovalchuk to a 17 year, $102 million deal built to taper off deep into his 40s, a front loaded structure designed to lower the annual cap hit.
The NHL rejected it, an independent arbitrator agreed it was circumvention, and New Jersey was fined $3 million while forfeiting a third round pick and a deferred first rounder.
That penalty stood as the league's benchmark cap case for years before it was softened in 2014 after Kovalchuk left for the KHL.

Why this still resonates now

Lamoriello, who parted ways with the Islanders GM job last year, built a reputation for pushing every boundary the CBA allowed.
The Clippers ruling shows leagues will swing the hammer hard when they believe a team crossed the line, hockey included.
Whether the NHL would ever hand out something this severe again is worth watching as cap strategists digest the fallout in Los Angeles.
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Five first-round picks gone after massive punishment handed out - and Lou Lamoriello's old cap case is back

Do you think the NHL should crack down on cap circumvention as hard as the NBA just did?


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