Steve Ballmer had little to gain and plenty to lose by suing NBA

Steve Ballmer’s sudden surrender to the NBA looked surprising.

Legally, it may have been the first sensible move the Clippers made in weeks.

Michael McCann of Sportico explained that Ballmer and the Clippers faced considerable obstacles if they followed through on threats to sue the league over its salary-cap circumvention penalties.

The NBA constitution operates as a contract among the league, its teams and owners. It describes decisions by the commissioner as “final and binding” and treats them similarly to arbitration awards, which courts generally are reluctant to disturb.

The Clippers could have argued that the investigation lacked due process or that the NBA retroactively punished conduct not expressly prohibited. The league’s response would have been simple: Ballmer agreed to these rules when he bought the team.

Kawhi Leonard and the players’ union also accepted his $700,000 penalty, eliminating another potential avenue for challenging the investigation through player arbitration.

Then there is the federal investigation. The Department of Justice reportedly is examining the underlying transactions involving Leonard, the Clippers and four outside companies. A lawsuit against the NBA could have invited judicial scrutiny of the same emails, contracts, payments and communications that federal prosecutors may be seeking.

Starting a civil fight while the government is examining whether any crimes occurred would have been quite a strategy.

McCann raised another possibility. Ballmer’s apology and compliance could represent a longer play for eventual leniency. The NBA previously reduced draft-pick penalties against the Timberwolves in the Joe Smith salary-cap case after Minnesota accepted its punishment.

There is no guarantee commissioner Adam Silver will do the same here. Reducing the Clippers’ penalties could create an uncomfortable precedent.

Still, Ballmer now has a chance to ask for mercy someday. Suing the NBA would have eliminated whatever goodwill remained. So he paid the $30 million fine, accepted his suspension and apologized for the “distraction and distress.”

Sometimes the best legal strategy is recognizing that your other legal strategies are worse.