By Johnny Askounis/ info@eurohoops.net
The Los Angeles Clippers and owner Steve Ballmer have been cleared of allegations that they funneled money through team sponsors to circumvent the salary cap to pay forward Kawhi Leonard, as reported by ESPN on Monday.
The update regarding the 11-month investigation noted that instead of direct financial misconduct, investigators are now focusing on whether the team’s practice of introducing Leonard to corporate partners constitutes a violation of league rules.
This dispute has put Leonard’s pending trade to the Toronto Raptors on hold while the NBA, the Clippers, and the NBPA negotiate a resolution or prepare for potential arbitration. However, the player continues to operate as if the trade will ultimately be completed.
The league’s inquiry initially focused on a $28 million endorsement deal between the two-time NBA champion and the now-defunct green banking firm Aspiration. The probe began after a podcast report by Pablo Torre revealed that Ballmer had personally invested $50 million in Aspiration, while the Clippers secured a separate $300 million partnership with the firm. The investigation later expanded to include multi-million-dollar deals with Daktronics and Boingo Wireless. Investigators are currently exploring a failure-to-supervise charge against the team, though the exact rules violated remain unclear.
Leonard’s championships in 2014 and 2019 were combined with Finals Most Valuable Player nods. Renowned for his elite two-way play, the six-time All-Star won titles with the San Antonio Spurs and Raptors before joining the Clippers in 2019.
Clippers, NBA reactions
Responding to the ESPN report, the Clippers issued an announcement.
Per the press release: “The Clippers introduced players, including Kawhi Leonard, to companies with which we had business relationships. Making introductions between players and team partners is both ordinary practice by NBA teams and a common request of players and representatives. From there, Kawhi and his representatives handled their own negotiations. The Clippers did not negotiate or dictate the terms of Kawhi’s endorsement agreements or determine what he would be paid.
Our commercial relationships stood on their own merits. We chose sponsors, vendors, and other business partners based on normal business considerations, including the value they provided, the quality of their products and services, and their ability to meet our business needs. We did not overpay any vendor or provide any sponsor, vendor, or business partner with discounts or favorable terms in order to funnel money to Kawhi.
The fact that a player has an endorsement relationship with a company that also does business with his team is not evidence of salary-cap circumvention.
After nearly a year of scrutiny, the central fact remains true and unchanged: the Clippers did not funnel money to Kawhi Leonard, arrange for others to compensate him on our behalf, or otherwise provide him with undisclosed compensation outside of his NBA contract.”
Furthermore, the NBA released a statement by spokesman Mike Bass.
“ESPN’s article regarding the L.A. Clippers investigation – for which the NBA declined to cooperate – contains numerous and significant inaccuracies. The results in this matter will be made clear once the investigation is concluded.”
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