The NBA has opened an investigation into allegations that the Los Angeles Clippers and owner Steve Ballmer tried to go around salary-cap rules by facilitating a $28 million “no-show” endorsement deal for All-Star forward Kawhi Leonard.
Was There A Secret Deal?
The probe stems from journalist Pablo Torre’s podcast “Pablo Torre Finds Out,” which revealed Leonard signed a four-year, $28 million agreement with Aspiration, a now-bankrupt environmental services company partially funded by Ballmer. According to Torre, the deal was made through Leonard’s company, KL2 Aspire LLC, and allegedly allowed Leonard to be paid without performing any promotional duties. All it seems he had to do was remain with the Clippers, according to Yahoo Sports.
An anonymous former Aspiration employee told Torre the agreement “was to circumvent the salary cap.” Legal documents cited in the report claim Aspiration has already paid Leonard $21 million and still owes him $7 million.
The controversy deepened after revelations that Ballmer invested $50 million in Aspiration in September 2021. Two weeks later, the Clippers announced a $300 million sponsorship deal with the company. Shortly after, Leonard’s lucrative endorsement deal was finalized.
The Clippers strongly denied wrongdoing in a statement, “Neither Mr. Ballmer nor the Clippers circumvented the salary-cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false: The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations.”
Ballmer, speaking to ESPN, stressed he had no role in structuring Leonard’s deal. “We made an investment in the company. I had no control over this company…The introduction got made. And they were off to the races on their own. We weren’t involved.”
Aspiration’s co-founder Joe Sanberg pleaded guilty on Aug. 21 to wire fraud, admitting he defrauded investors of over $248 million, according to a DOJ press release.
NBA spokesman Mike Bass confirmed the league is “commencing an investigation.” Potential penalties for the Clippers remain unclear, but Torre reported “a bit of panic” among league insiders as the probe develops.
