You wouldn’t have seen this coming. Not because it was unlikely. But judging by how the Los Angeles Clippers and Steve Ballmer reacted to the punishments the NBA levied against them after Adam Silver hired the law firm Wachtell, Lipton, Rosen & Katz, whose investigation exposed the LA franchise badly. Ballmer, banned for a year, called the NBA’s efforts to get to the truth “heavily biased.”

Last week, the New York Times reported that the Clippers and their owner were still trying to “figure out” how to respond to the league. Two avenues were being discussed: suing the league + asking a judge to issue “a restraining order.” But in reality, only days later, Ballmer has instead declared his compliance…

“This has been a very difficult time for everybody associated with the Clippers, and for that, I have sincere regrets,” Ballmer said in an official statement. “I want to apologize to our fans, employees, and my fellow NBA team owners for the distraction and distress this matter has caused, for which I accept responsibility as principal owner.

“We are committing to put this chapter behind us. We have communicated to the NBA that we are complying with the penalties assessed by the league, have paid the fine, and are moving forward. While there are still disagreements concerning the findings in the report, this is not where I want to focus. Team owners should support, not distract. The challenges ahead of us are significant, but so is our resolve.”

So, Ballmer confirmed that the Clippers have already paid the $30 million fine. The path ahead, though, won’t be easy because they face major penalties: the team is stripped of five consecutive first-round draft picks from 2029 to 2033, and Ballmer was suspended for a year. Clippers President of Business Operations Gillian Zucker was suspended without pay for a year, and President of Basketball Operations Lawrence Frank was suspended without pay for six months.

“We will continue to build our team and invest in our community,” Ballmer continued. “The confidence of our fans is our priority. With our talented roster, outstanding staff and clear vision, I am certain that we will compete at the highest level and be an organization our fans can be proud of.”

But crucially, complying isn’t the end of their troubles. According to a report from The New York Times, the U.S. Attorney’s Office for the Eastern District of New York has opened an early-stage criminal investigation into the Clippers’ dealings involving Leonard. Prosecutors have reportedly issued at least one subpoena.

The federal inquiry adds to a complex web of legal issues facing the organization. Investigative reporter Pablo Torre has also highlighted a separate civil lawsuit in which 11 former Aspiration investors are suing Ballmer and other defendants over alleged fraud tied to the company’s dealings and the Leonard controversy.

Furthermore, the SEC has sought information from Daktronics about the company and Leonard, and it previously brought an enforcement action against Aspiration co-founder Joseph Sanberg over financial fraud. Both Aspiration and Daktronics were among the four companies identified in the NBA’s investigation. Torre suggests the civil and federal investigations may help explain why Ballmer continues to dispute the findings even as he accepts the NBA’s penalties.

Why Steve Ballmer could’ve suddenly decided to comply

The NBA restored two of the five forfeited first-round picks to the Minnesota Timberwolves based on the team’s cooperation in the 2000 Joe Smith salary-cap circumvention case. This time, the Clippers have forfeited five picks. The fine is also significantly larger, at $30 million, compared with Minnesota’s $3.5 million.

Any further legal proceedings would only cost the Clippers more, regardless of the outcome. With Ballmer and two key front-office members suspended, no one is actually running the franchise. This move to comply may be a plea for help, probably not on the financial side, but an attempt to ease the yearlong bans.

Ballmer’s decision came only hours before the NBA’s two-day Board of Governors meeting, where Kawhi Leonard’s trade to the Toronto Raptors will be a definite agenda item. The agreement would send Brandon Ingram, Gradey Dick, two unprotected first-rounders, two first-round pick swaps and a second-rounder to LA, but was paused amid news about the ongoing investigation.

But when the trade didn’t resume after the investigation ended, league sources said the Clippers needed to “restructure” their front office to move forward. Respective camps have “remained confident” that the move will go through. Leonard also publicly told his fanbase, “I hope so,” when asked about the trade.

While Ballmer and his team have absorbed historic fines from the NBA, Leonard was only penalized $700,000. He made it clear that he had no knowledge of cap circumvention occurring under his name through his uncle, Dennis Robertson, who’s been banned for five years from conducting business with NBA teams.

Another reason Ballmer could’ve decided to comply is that the NBA said in its investigation that it had agreed with the players’ union on the findings about the Clippers and that they were “final and binding on all parties.” There was legally no route within NBA bylaws to contest the 35-page report, either.

Although Ballmer’s concession prevents a prolonged courtroom clash with the NBA Board of Governors, the looming Department of Justice inquiry means the franchise must navigate severe long-term ramifications on and off the court.