Recent reports allege that the LA Clippers and their owner, Steve Ballmer, have been involved in a scheme to improperly circumvent the NBA`s salary cap. The core of these accusations centers on a purported $28 million payment to star player Kawhi Leonard, characterized as compensation for a “no-show job.”
These claims were brought to public attention on Wednesday by podcaster Pablo Torre, formerly an ESPN contributor, on his podcast “Pablo Torre Finds Out.” Torre states that the Clippers channeled these payments to Leonard via Aspiration, a tree-planting company that Ballmer had financially backed and which has since declared bankruptcy.
Torre’s report draws upon a collection of internal documents from Aspiration. These records purportedly indicate that Ballmer invested $50 million into Aspiration through his personal LLC in September 2021. Later that same month, the Clippers announced a substantial $300 million partnership with Aspiration. This collaboration included sponsorship for the team`s new arena and placement of the company`s logo on the team`s jersey patch.
The alleged endorsement deal, a four-year agreement worth $28 million, was reportedly finalized in April 2022 between Aspiration and Leonard’s personal LLC, KL2 Aspire. This significant deal was struck just nine months after Leonard had signed a four-year, $176.3 million contract to remain with the Clippers—the maximum allowable under the NBA’s collective bargaining agreement at that time.
According to documents Torre obtained, a critical clause in the Aspiration-KL2 Aspire agreement stipulated that the deal would become void if Leonard departed the Clippers. Furthermore, Leonard reportedly maintained the option to decline any actions requested by Aspiration while still receiving payments. An anonymous former employee of Aspiration allegedly confirmed to Torre that the payment structure was explicitly intended “to circumvent the salary cap.”
The Clippers have issued a strong denial of the allegations, stating:
“Neither Mr. Ballmer nor the Clippers circumvented the salary-cap or engaged in any misconduct related to Aspiration. 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.”
As of now, the NBA has not yet provided an official response to the inquiries regarding Torre`s allegations. The league`s collective bargaining agreement specifies severe penalties for salary cap circumvention. These can include fines up to $7.5 million, the forfeiture of draft picks, the voiding of player contracts, and suspensions—up to a year—for any team personnel found guilty of such violations.
Historically, the NBA has imposed significant sanctions for similar infractions. In 2000, the Minnesota Timberwolves were penalized for a secret agreement with player Joe Smith. The Timberwolves lost five first-round draft picks, faced a $3.5 million fine, and saw their head coach and owner banned for a season, with Smith`s contracts ultimately voided.
The Clippers themselves have a prior record of facing scrutiny and fines from the league. In May 2019, they were fined $50,000 for tampering after then-head coach Doc Rivers publicly compared Kawhi Leonard, who was then with the Toronto Raptors, to Michael Jordan. Later that year, in November 2019, the team received another $50,000 fine for comments Rivers made that were deemed “inconsistent” with Leonard`s health status. Additionally, the league investigated allegations in 2019 that Leonard`s representatives made improper requests during his free agency, such as demands for team ownership stakes or private planes; however, no penalty was issued at that time. A December 2020 lawsuit by Johnny Wilkes, which alleged a $2.5 million payment to a consultant to aid in acquiring Leonard, was dismissed without league-imposed penalties.
Leonard, now 34, recently extended his commitment to the Clippers in January 2024, signing a three-year, $153 million deal that secures his presence with the team through the 2026-27 season. In a separate legal matter, the Clippers are currently defending against a 2024 lawsuit filed by former strength and conditioning coach Randy Shelton, who alleges wrongful termination after raising concerns about the management of Leonard`s health and injuries.
