Kawahi Leonard offered a free multi-million dollar penthouse if he stays

[Mike Pemulis]

Read this on Complex.

"The Raptors Republic has not been shy when it comes to enticing him before he becomes a free agent on July 1. Simon Mass, the CEO of Condo Store Realty Inc., is also trying to sweeten the deal for Leonard.

Narcity reports that Mass is ready to gift Leonard a multi-million-dollar penthouse in Toronto if he re-signs with the Raptors. A representative confirmed as such, adding that he'll be able to choose between a number of different penthouse condos in the city. Needless to say, the places on offer look very extravagant."

Uh... How do you stop this level of tampering? 

[A Future of Stevens]

Read this on Complex.

"The Raptors Republic has not been shy when it comes to enticing him before he becomes a free agent on July 1. Simon Mass, the CEO of Condo Store Realty Inc., is also trying to sweeten the deal for Leonard.

Narcity reports that Mass is ready to gift Leonard a multi-million-dollar penthouse in Toronto if he re-signs with the Raptors. A representative confirmed as such, adding that he'll be able to choose between a number of different penthouse condos in the city. Needless to say, the places on offer look very extravagant."

Uh... How do you stop this level of tampering?

Is it really tampering though? Superfans have no affiliation with the team. The Raptors don't have a hand in any of this from what I have read. Anyone can gift anybody anything as long as the appropriate tax guidelines are followed.

[Fafnir]

Read this on Complex.

"The Raptors Republic has not been shy when it comes to enticing him before he becomes a free agent on July 1. Simon Mass, the CEO of Condo Store Realty Inc., is also trying to sweeten the deal for Leonard.

Narcity reports that Mass is ready to gift Leonard a multi-million-dollar penthouse in Toronto if he re-signs with the Raptors. A representative confirmed as such, adding that he'll be able to choose between a number of different penthouse condos in the city. Needless to say, the places on offer look very extravagant."

Uh... How do you stop this level of tampering?

Is it really tampering though? Superfans have no affiliation with the team. The Raptors don't have a hand in any of this from what I have read. Anyone can gift anybody anything as long as the appropriate tax guidelines are followed.

NBA teams AND players are obligated to follow the CBA/Salary Cap rules against circumvention. Millions of dollars in free gifts would be ruled circumvention and be punished/disallowed.

[Fafnir]

Uh... How do you stop this level of tampering?

Easy, if it happens you do can void Kawhi's contract with Toronto and take away draft picks from the Raptors. They could even bar him from signing with the Raptors.

The NBA has extremely broad powers on circumvention.

Now sneakier methods of under the table payments might be hard to find, but this sort of stuff is easy. The reason Minnesota got slammed so hard is that the league wanted to make any team too scared to even entertain such notions.

[Monkhouse]

Read this on Complex.

"The Raptors Republic has not been shy when it comes to enticing him before he becomes a free agent on July 1. Simon Mass, the CEO of Condo Store Realty Inc., is also trying to sweeten the deal for Leonard.

Narcity reports that Mass is ready to gift Leonard a multi-million-dollar penthouse in Toronto if he re-signs with the Raptors. A representative confirmed as such, adding that he'll be able to choose between a number of different penthouse condos in the city. Needless to say, the places on offer look very extravagant."

Uh... How do you stop this level of tampering?

Is it really tampering though? Superfans have no affiliation with the team. The Raptors don't have a hand in any of this from what I have read. Anyone can gift anybody anything as long as the appropriate tax guidelines are followed.

NBA teams AND players are obligated to follow the CBA/Salary Cap rules against circumvention. Millions of dollars in free gifts would be ruled circumvention and be punished/disallowed.

Well... On a federal level, you're allowed a lifetime exception of $11.4 million in gift tax.

I don't know exactly how circumvention in NBA works, I might admit that I'm not familiar with it. But if the penthouse is multi million, Kawhi could technically pay a certain amount as a down payment, and then receive the other half of the estimated amount via the gift tax rule.

I'd assume this is what you're talking about Fafnir?

It shall constitute a violation of Section 1(a) above for a Team (or Team Affiliate) to enter into an agreement or understanding with any sponsor or business partner or third-party under which such sponsor, business partner or third-party pays or agrees to pay compensation for basketball services (even if such compensation is ostensibly designated as being for non-basketball services) to a player under Contract to the Team. Such an agreement with a sponsor or business partner or third-party may be inferred where: (i) such compensation from the sponsor or business partner or third-party is substantially in excess of the fair market value of any services to be rendered by the player for such sponsor or business partner or third-party; and (ii) the Compensation in the Player Contract between the player and the Team is substantially below the fair market value of such Contract.

At no time shall there be any agreements or transactions of any kind (whether disclosed or undisclosed to the NBA), express or implied,oral or written, or promises, undertakings, representations, commitments, inducements, assurances of intent, or understandings of any kind (whether disclosed or undisclosed to the NBA), between a player (or any person or entity controlled by, related to, or acting with authority on behalf of, such player) and any Team (or Team Affiliate):
concerning any future Renegotiation, Extension, or other amendment of an existing Player Contract, or entry into a new Player Contract; or
except as permitted by this Agreement or as set forth in a Uniform Player Contract (provided that the Team has not intentionally delayed submitting such Uniform Player Contract for approval by the NBA), involving compensation or consideration of any kind or anything else of value, to be paid, furnished or made available by, to, or for the benefit of the player, or any person or entity controlled by, related to, or acting with authority on behalf of the player; or
except as permitted by this Agreement, involving an investment or business opportunity to be furnished or made available by, to, or for the benefit of the player, or any person or entity controlled by, related to, or acting with authority on behalf of the player).

[Fafnir]

I don't know exactly how circumvention in NBA works, I might admit that I'm not familiar with it. But if the penthouse is multi million, Kawhi could technically pay a certain amount as a down payment, and then receive the other half of the estimated amount via the gift tax rule.

http://www.cbafaq.com/salarycap.htm#Q106

As any league executive will tell you, the CBA isn't a list of the things teams can't do; it's a list of the things teams can do. The league operates in a "disallow by default" mode -- actions are not allowed except where the CBA specifically permits them.

In other words, teams aren't allowed to put anything into a player's contract that wasn't negotiated between the league and players association and included in the CBA. For example, a team signing a known drug offender can't insist on a "one strike and you're out" policy or that the player attend mandatory drug counseling -- instead they must follow the negotiated drug program (see question number 109).

The CBA also has a general prohibition on circumvention which states that the rules exist to preserve the benefit derived by the teams and players, and that nobody shall do anything to defeat or circumvent the intent of the agreement. The league can use this prohibition to disallow a signing or trade that they feel circumvents the CBA, even though it is not specifically prohibited by the agreement.

Examples of conduct considered to be circumvention include:

A team owner allowing a player to invest in a business or investment fund controlled by the owner or a friend of the owner.
A team executive assisting a player in obtaining a product endorsement.
Any "under the table" promises for a future contract (see question number 30).
A team's arena renting retail space to a player on the team.
A team selling a sponsorship to a business in which a player has an interest.
A team hiring a player's relative or business partner as an employee.
A team owner allowing a player the use of his private plane.
A company affiliated with a team's owner making a home available to one of the team's players.
Whenever a contract is signed, extended, renegotiated or otherwise amended, the team, player, and player's agent must certify, under penalty of perjury, that there are no side agreements or understandings of any kind relating to:

Any future contract, or future extension, renegotiation or amendment of the player's current contract.
Any outside compensation, investment, business opportunity or anything else of value furnished to the player or any other person or entity controlled by, related to, or acting on behalf of the player.
The intent of these rules is to ensure that the only agreement from which either the player or the team can benefit is the current, signed player contract. The rules extend to sponsors, business partners and other team affiliates, and to player agents, representatives and family members.

http://www.cbafaq.com/salarycap.htm#Q112

It's when a contract is canceled, i.e., rendered "null and void" because its terms were broken. This is not the same as merely terminating a contract by waiving the player (see question number 64). When a player is waived, some of the terms of the contract remain in effect -- for example, the player is still paid any remaining guaranteed salary. When a contract is voided, none of its terms remain in effect. It's treated the same as if the contract had never existed.

Contracts might be voided under the following circumstances:

At the start of a contract, if a player fails his physical examination. For example, Ronny Turiaf's initial contract with the Lakers in 2005 was voided when his physical examination uncovered a heart abnormality.
At the start of a contract, if the contract is disapproved by the league. For example, the league will disapprove a new contract if its first year salary is higher than the player's maximum, or greater than the team's room.
If the "trade" portion of a sign-and-trade transaction is not completed within 48 hours.
When a player is disqualified from the league per the terms of the league's drug program (see question number 109).
When certain instances of circumvention are discovered (see question numbers 29, 30 and 106), at the Commissioner's discretion.
When the player violates Paragraph 16 of the standard NBA contract. The team can void the contract when the player:
Fails, refuses, or neglects to conform his personal conduct to standards of good citizenship, good moral character (defined as not engaging in acts of moral turpitude, whether or not these acts constitute a crime), and good sportsmanship.
Commits a significant and inexcusable physical attack against any official or employee of the team or the NBA (other than another player), or any person in attendance at any NBA game or event. The determination as to whether the attack was significant and inexcusable considers the totality of the circumstances, such as the nature of any provocation.
When the player is in violation of sections of Article 35 of the NBA Constitution dealing with game fixing and gambling on NBA games.
During the 2011 lockout, the league suggested it had the power to void all player contracts. Their reasoning was that player contracts existed under the purview of the CBA, and without a CBA, all player contracts were unenforceable. It is unclear whether the league actually would have tried to void all player contracts had the lockout continued, and if they did so, if they would have prevailed in court.
Any attempt at voiding a contract likely would be met with a grievance filed by the players association on behalf of the player. Grievance arbitrators have consistently denied attempts to void contracts. For example:

The Boston Celtics were not allowed to void Vin Baker's contract in 2004, despite his alcohol abuse preventing him from playing, and his failure to comply with his treatment program.
The Golden State Warriors were not allowed to void Latrell Sprewell's contract in 1997 after he choked his coach, P.J. Carlesimo.

[Tr1boy]

Balmer will prob one up this with a mansion

He could stay as a Raptor though

They think of Leonard as a basketball god already

[Fafnir]

Yup that is it. If Raptor's "boosters" give Kawhi millions of dollars of free stuff for staying they would be acting as agents or affiliates of the team to circumvent the cap. His contract would be voided at the least and likely other punishments would rain down from on high.

[Monkhouse]

I don't know exactly how circumvention in NBA works, I might admit that I'm not familiar with it. But if the penthouse is multi million, Kawhi could technically pay a certain amount as a down payment, and then receive the other half of the estimated amount via the gift tax rule.

http://www.cbafaq.com/salarycap.htm#Q106

As any league executive will tell you, the CBA isn't a list of the things teams can't do; it's a list of the things teams can do. The league operates in a "disallow by default" mode -- actions are not allowed except where the CBA specifically permits them.

In other words, teams aren't allowed to put anything into a player's contract that wasn't negotiated between the league and players association and included in the CBA. For example, a team signing a known drug offender can't insist on a "one strike and you're out" policy or that the player attend mandatory drug counseling -- instead they must follow the negotiated drug program (see question number 109).

The CBA also has a general prohibition on circumvention which states that the rules exist to preserve the benefit derived by the teams and players, and that nobody shall do anything to defeat or circumvent the intent of the agreement. The league can use this prohibition to disallow a signing or trade that they feel circumvents the CBA, even though it is not specifically prohibited by the agreement.

Examples of conduct considered to be circumvention include:

A team owner allowing a player to invest in a business or investment fund controlled by the owner or a friend of the owner.
A team executive assisting a player in obtaining a product endorsement.
Any "under the table" promises for a future contract (see question number 30).
A team's arena renting retail space to a player on the team.
A team selling a sponsorship to a business in which a player has an interest.
A team hiring a player's relative or business partner as an employee.
A team owner allowing a player the use of his private plane.
A company affiliated with a team's owner making a home available to one of the team's players.
Whenever a contract is signed, extended, renegotiated or otherwise amended, the team, player, and player's agent must certify, under penalty of perjury, that there are no side agreements or understandings of any kind relating to:

Any future contract, or future extension, renegotiation or amendment of the player's current contract.
Any outside compensation, investment, business opportunity or anything else of value furnished to the player or any other person or entity controlled by, related to, or acting on behalf of the player.
The intent of these rules is to ensure that the only agreement from which either the player or the team can benefit is the current, signed player contract. The rules extend to sponsors, business partners and other team affiliates, and to player agents, representatives and family members.

http://www.cbafaq.com/salarycap.htm#Q112

It's when a contract is canceled, i.e., rendered "null and void" because its terms were broken. This is not the same as merely terminating a contract by waiving the player (see question number 64). When a player is waived, some of the terms of the contract remain in effect -- for example, the player is still paid any remaining guaranteed salary. When a contract is voided, none of its terms remain in effect. It's treated the same as if the contract had never existed.

Contracts might be voided under the following circumstances:

At the start of a contract, if a player fails his physical examination. For example, Ronny Turiaf's initial contract with the Lakers in 2005 was voided when his physical examination uncovered a heart abnormality.
At the start of a contract, if the contract is disapproved by the league. For example, the league will disapprove a new contract if its first year salary is higher than the player's maximum, or greater than the team's room.
If the "trade" portion of a sign-and-trade transaction is not completed within 48 hours.
When a player is disqualified from the league per the terms of the league's drug program (see question number 109).
When certain instances of circumvention are discovered (see question numbers 29, 30 and 106), at the Commissioner's discretion.
When the player violates Paragraph 16 of the standard NBA contract. The team can void the contract when the player:
Fails, refuses, or neglects to conform his personal conduct to standards of good citizenship, good moral character (defined as not engaging in acts of moral turpitude, whether or not these acts constitute a crime), and good sportsmanship.
Commits a significant and inexcusable physical attack against any official or employee of the team or the NBA (other than another player), or any person in attendance at any NBA game or event. The determination as to whether the attack was significant and inexcusable considers the totality of the circumstances, such as the nature of any provocation.
When the player is in violation of sections of Article 35 of the NBA Constitution dealing with game fixing and gambling on NBA games.
During the 2011 lockout, the league suggested it had the power to void all player contracts. Their reasoning was that player contracts existed under the purview of the CBA, and without a CBA, all player contracts were unenforceable. It is unclear whether the league actually would have tried to void all player contracts had the lockout continued, and if they did so, if they would have prevailed in court.
Any attempt at voiding a contract likely would be met with a grievance filed by the players association on behalf of the player. Grievance arbitrators have consistently denied attempts to void contracts. For example:

The Boston Celtics were not allowed to void Vin Baker's contract in 2004, despite his alcohol abuse preventing him from playing, and his failure to comply with his treatment program.
The Golden State Warriors were not allowed to void Latrell Sprewell's contract in 1997 after he choked his coach, P.J. Carlesimo.

That makes sense.

But from my understanding of reading those examples, and skimming over it... Kawhi can always re-sign for a contract, and 'technically,' receive the house, and do what I suggested. Cover half the cost through a down payment, and use his lifetime gift tax.

Anyways, Kawhi has plenty of money, so this isn't even a big deal. Plus Balmer's tech affiliations/correspondences looks far more appealing than a free multi million dollar 'pent house.'

The woes of being known as a famous basketball player!

[Fafnir]

A company affiliated with a team's owner making a home available to one of the team's players.

Getting a free house is specifically mentioned as circumvention, its not a tax issue with the US/Canadian governments, its a CBA violation.

[Mike Pemulis]

Thanks for the cba links, sorry for not researching them first... @aFutureOS yeah, i'm not sure it is either, but it does seem like an advantage in the "spirit" of tampering. I'm also not familiar with the taxes of gifting, etc. The questions I had were: Will Adam Silver have to meet with Canadian government, can it be called tampering if he leaves anyway, and what generally more informed people think about the likelihood of the league intervening. 

[SparzWizard]

Isn't this a form of bribery lol

[CKilo]

How is this different than any endorsement deal?  Have Kawahi do a commercial or appearance for the company and receive condo as payment if nothing else.     

[Fafnir]

Thanks for the cba links, sorry for not researching them first... @aFutureOS yeah, i'm not sure it is either, but it does seem like an advantage in the "spirit" of tampering. I'm also not familiar with the taxes of gifting, etc. The questions I had were: Will Adam Silver have to meet with Canadian government, can it be called tampering if he leaves anyway, and what generally more informed people think about the likelihood of the league intervening.

Once again its not a government issue. Why would Silver have to talk to the Canadian government over an internal labor issue?

You are not breaking any laws giving a man a Condo. (and its not like tax's have to be filed immediately either)

[Fafnir]

How is this different than any endorsement deal?  Have Kawahi do a commercial or appearance for the company and receive condo as payment if nothing else.   

Receiving more than fair market value for an endorsement is considered circumvention.