In a development that could shake the foundations of NBA regulations, Los Angeles Clippers owner Steve Ballmer and star player Kawhi Leonard are accused of circumventing the league’s salary cap through a US$28 million (AU$43 million) marketing agreement. This claim was brought to light by a former employee of Aspiration, a financial firm once backed by Ballmer, during an episode of the “Pablo Torre Finds Out” podcast.
The former employee alleged that staff were instructed not to question Leonard’s deal with Aspiration, which has since declared bankruptcy. The purported aim of this arrangement was to “circumvent the salary cap.” In response, Ballmer and the Clippers have categorically denied any wrongdoing, stating, “Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration.”
NBA spokesman Mike Bass confirmed that the league is “aware of this morning’s media report regarding the LA Clippers and are commencing an investigation.” This comes as the Clippers, under Ballmer’s ownership, managed to secure Leonard in a high-profile signing in July 2019, inking him to a four-year, US$141 million (AU$215 million) contract.
Background of the Allegations
The Clippers’ acquisition of Leonard was a coup, given that other franchises, including the storied Los Angeles Lakers, were vying for his signature. Reports at the time suggested that Leonard’s uncle, Dennis Robertson, had made demands during the recruiting process that fell outside the NBA’s collective bargaining agreement.
According to a December 2019 report by The Athletic, Robertson allegedly requested “part ownership of the team, a private plane, a house, and guaranteed off-court endorsement money.” These requests were reportedly made to several teams, including the Lakers and Raptors, though no violations were found against the Clippers at that time.
The Aspiration Connection
The new allegations suggest that the Clippers may have found a way to meet some of these demands through a deal with Aspiration. The company, which filed for Chapter 11 bankruptcy in March, listed LA Clippers LLC as its top creditor, owed over $30 million.
Documents revealed by Torre on his podcast indicate that KL2 Aspire LLC, a company linked to Leonard, was to receive $28 million from Aspiration in $7 million annual payments starting April 2022. The agreement named Leonard explicitly and appointed Dennis Robertson as his “designated representative.”
“The single-largest payment to an individual for marketing that Aspiration has ever made has completely evaded all press. It’s honestly incredible. Nothing. He didn’t have to do anything,” a former Aspiration finance employee reportedly told Torre.
Implications for the NBA and the Clippers
The allegations, if proven true, could have significant repercussions for the Clippers and the NBA. The league has strict rules about salary caps and player compensation to ensure competitive balance. Any proven attempt to circumvent these rules could lead to severe penalties, including fines and loss of draft picks.
For Leonard, who has been a key figure for the Clippers since his signing, the controversy adds another layer of complexity to his legacy. Despite leading previous teams like the Spurs and Raptors to championships, his tenure with the Clippers has not yet yielded similar success.
Looking Ahead
As the NBA’s investigation unfolds, the focus will be on uncovering the truth behind the Aspiration deal. The league’s findings could influence future contract negotiations and endorsement deals across the NBA.
Meanwhile, Leonard is preparing for his 14th NBA season, aiming to lead the Clippers beyond their recent playoff disappointments. The team has consistently reached the playoffs but has struggled to advance past the first round in recent years.
This story originally appeared in the New York Post and has been reproduced with permission.
