Twenty-four years ago, the NBA faced one of its most significant controversies involving the Minnesota Timberwolves and forward Joe Smith. On October 25, 2000, the NBA announced that, as a result of an arbitrator’s ruling, the Timberwolves, Smith, and his agent had entered into a secret agreement that violated the league’s salary cap rules. This decision led to severe penalties imposed by NBA Commissioner David J. Stern.
The investigation revealed that the Timberwolves had promised Smith a lucrative, multi-year deal under the table, bypassing the salary cap restrictions. This clandestine agreement aimed to circumvent league rules, allowing Minnesota to retain Smith’s services without impacting their salary cap. When the deal came to light, it shook the NBA to its core, highlighting the lengths teams might go to secure talent while sidestepping financial regulations.
Commissioner Stern responded decisively, directing the forfeiture of Minnesota’s next five first-round draft picks and imposing a $3.5 million fine on the team. Additionally, all contracts between Smith and the Timberwolves were voided, rendering the agreements null and void.
The loss of five first-round draft picks was a massive blow to the Timberwolves, significantly impacting their ability to build through the draft. The hefty fine and the voided contracts further underscored the seriousness of the violation.
However, on December 8, 2003, the NBA made a surprising move by restoring Minnesota’s first-round draft pick for that year. This decision was seen as a step towards redemption for the Timberwolves, who had been severely penalized for their actions.
The Joe Smith scandal remains one of the most notable salary cap violations in NBA history, serving as a reminder of the importance of maintaining fair play and integrity within the league. The restoration of the draft pick was a small consolation for the Timberwolves, but it marked a significant moment in the team.
