The NBA is opening an investigation into Clippers owner Steve Ballmer and star player Kawhi Leonard following a report on Wednesday that the two broke salary cap rules to complete a deal.
Former ESPN journalist Pablo Torre, who recently started the podcast Pablo Torre Finds Out, reported on Wednesday that “Kawhi Leonard signed a $28M endorsement deal for a ‘no-show job’ with a fraudulent tree-planting company funded by $50M from Clippers owner Steve Ballmer.”
Torre, who said he spent seven months on the report, added that he was told by a source that the deal was done to "circumvent the salary cap."
The NBA told ESPN’s Shams Charania on Wednesday afternoon that it is aware of the report from Torre and is opening an investigation.
“NBA spokesman Mike Bass tells ESPN: ‘We are aware of this morning’s media report regarding the LA Clippers and are commencing an investigation,’” Charani posted on X.
According to the Associated Press, the investigation is focusing on ties between Kawhi Leonard, the Clippers and a company named Aspiration Fund Adviser, LLC.
The company filed for bankruptcy earlier this year, according to the AP. At that time, it reportedly owed $30 million to the Clippers and $7 million to Kawhi Leonard.
Torre reported that Leonard was to be paid $7 million per year for four years by Aspiration as a part of the deal he signed. He would have been owed the final $7 million when Aspiration filed for bankruptcy.
The Clippers organization sent a release to the AP denying that it did anything wrong.
"Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration,” the statement said. “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.”
The Associated Press added that Aspiration co-founder Joseph Sanberg plead guilty last month after facing federal charges of wire fraud. He was accused of defrauding investors and lenders out of $248 million.
“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 Clippers’ statement continued. “The team and Mr. Ballmer stand ready to assist law enforcement in any way they can.”
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