NBA says it will investigate report Clippers broke salary cap rules with Kawhi Leonard deal
The NBA announced on Wednesday that it will be launching an investigation into a $28 million endorsement deal between Kawhi Leonard and a California-based sustainability services company, Aspiration Fund Adviser, LLC. This investigation comes after journalist Pablo Torre brought to light concerns that the deal may have allowed the Los Angeles Clippers to bypass salary cap regulations.
The focus of the probe will be on the connections between Leonard, the Clippers, and Aspiration Fund Adviser, LLC, which filed for bankruptcy earlier this year. The company listed the Clippers as creditors owed approximately $30 million, as well as KL2 Aspire LLC, owed $7 million. Leonard is listed as the manager of KL2 Aspire LLC, with “KL” representing his initials and “2” his jersey number. Requests for comment from Leonard’s representatives were left unanswered.
In response to these allegations, NBA spokesman Mike Bass stated, “We are aware of this morning’s media report regarding the LA Clippers and are commencing an investigation.” The Clippers, however, have denied any wrongdoing, insisting that neither owner Steve Ballmer nor the team broke league rules related to their partnership with Aspiration. The team clarified that they severed ties with Aspiration during the 2022-23 season due to the company defaulting on its obligations.
Aspiration’s co-founder, Joseph Sanberg, recently pleaded guilty to federal charges of wire fraud, admitting to defrauding investors and lenders of $248 million. Prosecutors revealed that Aspiration’s financial statements were misleading, reporting significantly higher revenue than what the company actually received.
Pablo Torre obtained documents revealing the $28 million endorsement deal between Leonard and Aspiration, indicating that Leonard was slated to receive $7 million annually for four years. Despite this agreement, there is no evidence that Leonard actively promoted Aspiration.
The NBA has the authority to impose severe penalties on teams found guilty of salary cap violations, including fines of up to $7.5 million, contract nullifications, and loss of future draft picks. The league had previously investigated claims of cap circumvention by Leonard’s representatives during his free agency period.
The Clippers have pledged their cooperation with law enforcement and the NBA throughout the investigation. It remains to be seen how this situation will unfold and what consequences, if any, will be faced by those involved.
