New reports reveal Kawhi Leonard’s Aspiration deal was larger than first reported, with an additional $20 million in stock.
Kawhi Leonard no-show scandal keeps growing, with new reports revealing that the Los Angeles Clippers star’s side deal with Aspiration Partners was even larger than initially reported.
Boston Sports Journal claims Leonard was set to receive an additional $20 million in company stock from Aspiration, on top of the $48 million previously reported. The stock was reportedly paid out from personal holdings of Aspiration co-founder Joseph Sanberg over four years.
The report alleges that none of Aspiration’s executives were consulted about the deal and that it was never presented to the company’s board of directors.
“Had they followed typical procedures, they would have objected to the deal,” the report stated. Cherny, Aspiration’s CEO at the time, signed off on the deal despite the management team’s concerns that it was a poor use of cash resources.
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Unlike other celebrity endorsers, including Robert Downey Jr. and Drake, Leonard apparently did no promotional work for the company. The NBA has launched an investigation into the matter.
Sanberg recently pled guilty to a $248 million scheme to defraud investors, and Aspiration filed for bankruptcy months before. “This so-called ‘anti-poverty’ activist has admitted to being nothing more than a self-serving fraudster,” said Acting U.S. Attorney Bill Essayli.
The controversy also draws attention to the Clippers’ owner, Steve Ballmer. With the team set to host NBA All-Star Weekend at the new Intuit Dome in February, questions about the organization’s oversight of Leonard’s deal will remain in the spotlight.
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