NBA says it will open investigation into report that Clippers broke cap rules with Leonard deal
Sports
The team ended its relationship with Aspiration after two years
LOS ANGELES (AP) — The NBA said Wednesday that it will investigate if a $28 million endorsement contract between Kawhi Leonard and a California-based sustainability services company allowed the Los Angeles Clippers to circumvent league salary cap rules, following a report by journalist Pablo Torre.
The Clippers strongly denied that any rules were broken and said they welcomed the league’s investigation.
The probe will focus on ties between Leonard, the Clippers and a company called Aspiration Fund Adviser, LLC, which filed for bankruptcy this year. It listed several creditors at that time, among them the Clippers (who were owed about $30 million) and a company called KL2 Aspire LLC that was owed $7 million.
Leonard is listed as the manager of that company in California filings. KL is his initials, and 2 is his jersey number. Emails sent to his listed representatives seeking comment Wednesday were not immediately returned.
“We are aware of this morning’s media report regarding the LA Clippers and are commencing an investigation,” NBA spokesman Mike Bass said Wednesday.
Clippers owner Steve Ballmer made a $50 million investment in Aspiration, and the company and the team announced a $300 million partnership in September 2021. That was about a month after Leonard signed a four-year, $176 million extension with the Clippers.
The team ended its relationship with Aspiration after two years, saying the contract was in default.
“Neither the Clippers nor Steve Ballmer circumvented the salary cap,” the team said. “The notion that Steve invested in Aspiration in order to funnel money to Kawhi Leonard is absurd. Steve invested because Aspiration’s co-founders presented themselves as committed to doing right by their customers while protecting the environment.
“After a long campaign of market manipulation, which defrauded not only Steve but numerous other investors and sports teams, Aspiration filed for bankruptcy. ... Neither Steve nor the Clippers had knowledge of any improper activity by Aspiration or its co-founder until after the government initiated its investigation.”
