The NBA has launched a high-stakes investigation into whether the Los Angeles Clippers and owner Steve Ballmer secretly funneled millions to Kawhi Leonard through a bankrupt sustainability firm.
Ballmer has admitted he invested $50 million into Aspiration Partners, a company that later signed Leonard to a $28 million endorsement deal. Bankruptcy filings show Leonard was paid $21 million and is still owed another $7 million. Questions remain about whether those payments were legitimate endorsements or a way to sidestep the salary cap.
“There’s nothing fun about being highlighted in this way,” Ballmer told the Sports Business Journal. “It’s a whole lot more fun to be highlighted for building a great arena. But this too shall pass.”
Ballmer insists his investment came well before Aspiration’s deal with Leonard.
“I feel quite confident … that we abided [by] the rules. So, I welcome the investigation that the NBA is doing,” he said. He also confirmed to ESPN that he introduced Leonard to Aspiration executives but only after the Clippers had finalized both Leonard’s contract and a $330 million sponsorship deal with the company.
“We were done with Kawhi, we were done with Aspiration,” Ballmer said. “The deals were all locked and loaded. Then, they did request to be introduced to Kawhi, and under the rules, we can introduce our sponsors to our athletes. We just can’t be involved.”
NBA commissioner Adam Silver has called attempts to get around the cap a “cardinal sin.” Several former Aspiration employees described Leonard’s agreement as a “no-show” deal, while former CEO Andrei Cherny countered on X that Leonard’s contract “contained three pages of extensive obligations,” according to The Athletic.
The league could suspend Ballmer for up to one year, fine him $7.5 million, and strip the Clippers of future first-round picks, a devastating blow for a team already short on draft capital.
Whether Ballmer’s reputation as a respected owner can protect him remains to be seen. But around the league, one thing is certain: the NBA isn’t taking this lightly.
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