Allegations have emerged surrounding Kawhi Leonard, claiming he was part of a scheme to circumvent NBA salary cap regulations through a lucrative, no-show endorsement deal with Aspiration, a now-bankrupt environmental company.
This accusation surfaced on the latest episode of the “Pablo Torre Finds Out” podcast, which aired Wednesday.
Seven former employees of Aspiration, an environmental start-up based in San Francisco that had received a significant investment from LA Clippers’ owner Steve Ballmer, shared their insights anonymously.
According to these individuals, Leonard’s four-year, $28 million contract with Aspiration in 2022 was essentially a no-work agreement designed to help him receive additional compensation without it counting against the NBA’s salary cap.
One former financial official at Aspiration revealed that during discussions about various contracts, it was mentioned, almost jokingly, that the marketing deal with Leonard was intended to sidestep salary cap limits.
“We went through a litany of really, really top-tier name contracts, and then [someone would say], ‘Oh, by the way, we also have a marketing deal with Kawhi Leonard, like a $28 million organic marketing sponsorship deal with Kawhi,'” the official noted.
The Clippers responded to these allegations, stating that Ballmer and the team did not violate salary cap regulations or engage in any misconduct involving Aspiration.
According to the team’s communications, any contrary claims are entirely false.
They emphasized that their relationship ended in the 2022-23 season due to Aspiration’s default on obligations, asserting that neither the Clippers nor Ballmer were aware of any wrongdoing until after the firm became embroiled in a government investigation.
This isn’t the first time Leonard has faced accusations regarding improprieties during his time with the Clippers.
In 2019, the NBA conducted an investigation into claims that Leonard’s chief business partner and uncle, Dennis Robertson, had solicited improper benefits from multiple teams as Leonard was entering free agency.
Reports indicated that Robertson sought benefits ranging from team ownership stakes to private jet access and guaranteed off-court endorsement income.
Ultimately, the investigation found no evidence that the Clippers accommodated those requests when Leonard signed a three-year, $103 million contract that summer.
Still, NBA Commissioner Adam Silver noted that if additional evidence came to light, the league would reopen their investigation into the matter.
The consequences of illegally circumventing the salary cap are severe, with teams and players facing fines, loss of draft picks, and potential suspensions.
In a historical case from 2000, the Minnesota Timberwolves faced significant penalties after circumventing the salary cap with one-year contracts for player Joe Smith, leading to hefty fines, lost draft picks, and contract voiding.
Ballmer, recognized as the wealthiest owner in the NBA with a net worth of $153 billion as per Forbes, has previously drawn the league’s attention for alleged off-court financial handling involving players.
In August 2015, the Clippers were fined $250,000 for including a third-party endorsement deal with Lexus in their pitch to free agent DeAndre Jordan.
As of now, it remains unclear whether Ballmer was directly aware of the employment agreement between Aspiration and Leonard, and what role he may have played in facilitating the endorsement deal.
Aspiration marketed itself as a ‘green bank,’ focusing on offering carbon credits and tree-planting initiatives to offset client emissions.
After filing for bankruptcy protection in March, it was reported that co-founder Joe Sanberg faced legal issues, culminating in a guilty plea for defrauding investors to the tune of $248 million.
Bankruptcy records reveal that the Clippers are among Aspiration’s largest creditors, claiming a $30 million debt, alongside Ballmer’s Forum Entertainment owed $11 million and Leonard’s personal LLC, KL2 Aspire, which claims $7 million.
The podcast alleges that Ballmer approved a $50 million investment in Aspiration a month after Leonard extended his contract with the Clippers for four years at $176 million, effectively creating a sponsorship deal between the team and the company shortly thereafter.
Leonard’s endorsement contract, which reportedly began in April 2022, stipulated that he had significant control over the content and distribution related to his endorsement with Aspiration, alongside a clause allowing the company to terminate the relationship if he left the Clippers.
However, records indicate that there are no available instances of Leonard promoting Aspiration in any social media posts, photographs, or appearances, as the contract would mandate.
Nonetheless, the Clippers did tag Aspiration in social media posts referencing Leonard, yet there has been no retweet or acknowledgment from Leonard himself.
Former finance personnel at Aspiration remarked that fulfilling payments to Leonard was paramount, adding, “Uncle Dennis demanded payment. It was priority one. It was something that had to be done, and it was crucial to our relationships with Ballmer and the Clippers.”
Further information states that Robertson is noted as the ‘designated representative’ in the contract with Aspiration.
Potential sanctions for salary cap circumvention, as defined in Section 3 of Article XIII of the NBA’s policy on penalty provisions, outline extensive penalties, including monetary fines, loss of draft picks, contract voiding, and potential suspensions for team personnel involved.
Pablo Torre’s podcast, distributed through The Athletic, recently entered a licensing agreement, marking the episode highlighting these allegations as the first under this new partnership.
Law Murray contributed reporting, providing insights into this unfolding situation.
image source from：nytimes
