Report: Did the Clippers Skirt the Salary Cap with a $28 Million Kawhi Leonard Payment?
A bombshell report has surfaced, alleging that the LA Clippers and owner Steve Ballmer circumvented the NBA's salary cap by funneling **$28 million to Kawhi Leonard through a dubious endorsement deal.** The allegations stem from internal documents of the now-bankrupt tree-planting company, Aspiration, partially funded by Ballmer.
The explosive claims were brought to light by Pablo Torre, a podcaster and former ESPN contributor, on his "Pablo Torre Finds Out" podcast. Torre alleges that the Clippers paid Leonard via Aspiration, a company in which Ballmer invested **$50 million through his personal LLC on Sept. 14, 2021.**
Just weeks later, on Sept. 27, 2021, the Clippers announced a **$300 million partnership with Aspiration**, including sponsorship in the team's new arena and on their jersey patch.
According to Torre's report, the timeline of events raises serious questions:
- April 2022: Leonard allegedly agreed to a four-year, $28 million endorsement deal through his LLC, KL2 Aspire.
- Nine months prior: Leonard signed a four-year, $176.3 million contract with the Clippers – the maximum allowed at the time.
A particularly damning clause within the Aspiration documents reportedly stated that the deal with KL2 Aspire would be voided if Leonard left the Clippers. Furthermore, Leonard could "decline to proceed with any action desired" by Aspiration and continue to receive payment. An anonymous Aspiration employee reportedly told Torre that **the payment to Leonard "was to circumvent the salary cap."**
The Clippers have vehemently denied 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 further stated they ended their relationship with Aspiration during the 2022-23 season due to Aspiration's default on its obligations and were unaware of any improper activity. They have pledged to cooperate with law enforcement.
The NBA has yet to comment on the allegations.
If the allegations are proven true, the Clippers could face severe penalties under the NBA's collective bargaining agreement. These penalties can include:
- Fines up to **$7.5 million**
- Forfeiture of draft picks
- Voiding player contracts
- Suspension for team personnel
This wouldn't be the first time a team has been penalized for salary cap circumvention. The Minnesota Timberwolves faced severe repercussions in 2000 for a secret agreement with Joe Smith.
The Clippers themselves have a history of NBA scrutiny, including fines for tampering and investigations into their pursuit of Kawhi Leonard in 2019.
Leonard, now 34, recently signed a three-year, $153 million extension with the Clippers in January 2024, keeping him with the team through the 2026-27 season.
These are serious allegations that could have significant ramifications for the Clippers organization and the NBA as a whole. The league's investigation, should it occur, will be closely watched to determine the truth behind these claims and ensure the integrity of the game. The situation serves as a stark reminder of the complexities and challenges involved in maintaining a level playing field within professional sports.
Source: https://www.espn.com/nba/story/_/id/46146871/report-clippers-skirted-nba-salary-cap-kawhi-leonard-payment
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