The NBA is opening an investigation after a new report revealed that Kawhi Leonard was paid by a now-bankrupt environmental firm that had close ties to the Los Angeles Clippers and team owner Steve Ballmer in a deal that one former employee of the firm has said was designed to circumvent the NBA’s salary cap.
According to a new report on the podcast Pablo Torre Finds Out published Wednesday, Leonard had a four-year, $28-million endorsement contract with the firm Aspiration, but is alleged to have provided no work as part of the deal. Documents obtained by Torre reveal Ballmer had invested $50 million in the firm shortly before Leonard’s endorsement deal went into effect in April 2022.
“We went through a litany of really, really top-tier name contracts, and then, ‘Oh, by the way, we also have a marketing deal with Kawhi Leonard, like a $28-million organic marketing sponsorship deal with Kawhi,’” a person described as a former financial department employee at Aspiration said in an interview with Torre. “And that if I had any questions about it, essentially don’t (ask), because it was to ‘circumvent the salary cap. LOL.’ There was lots of LOL when things were shared.”
In a statement, the NBA said it was aware of Torre’s reporting and would begin an investigation.
The Clippers provided a statement to Torre denying any wrongdoing by the team or Ballmer.
“Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration,” the team statement read. “Any contrary assertion is provably false: The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations. Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation. The team and Mr. Ballmer stand ready to assist law enforcement in any way they can.”
Aspiration was a firm that promised its clients carbon credits and tree planting to offset carbon costs. The company went bankrupt in March after co-founder Joe Sanberg was arrested for wire fraud. Sanberg has since pleaded guilty to the charges.
Leonard signed a four-year, $176-million contract extension with the Clippers in August 2021. Then, in September 2021, according to documents obtained by Torre, Ballmer wired $50 million to Aspiration as part of a $315-million investment alongside other partners. That same month, Ballmer and Sanberg held a joint press conference during Clippers media day to announce a 23-year, $300-million sponsorship agreement that would see the Aspiration brand appear throughout the Clippers’ new arena, the Intuit Dome.
Leonard registered a limited liability company named KL2 Aspire in November 2021, and an endorsement contract between KL2 Aspire and Aspiration began in April 2022, according to documents obtained by Torre. Leonard’s uncle, Dennis Robertson, is listed as the Clippers star’s “designated representative” on the contract.
The contract included a clause that gave Leonard full control over the content of his endorsement of the company and included a clause that would terminate the deal if Leonard was no longer an employee of the Clippers. Torre reported that there was no evidence Leonard ever provided any endorsements for Aspiration on social media or other platforms.
“(Leonard) didn’t have to do anything,” the former finance department employee at Aspiration told Torre. “Uncle Dennis demanded payment. It was Priority 1. It was something that had to be done, and it was crucial to our relationships with Ballmer and the Clippers.”
