Los Angeles Clippers owner Steve Ballmer says he had no idea that a sponsor of his NBA club reportedly was paying superstar Kawhi Leonard $28 million (A$42.5m) for a no-work job.
Ballmer spoke with ESPN following a podcast report by journalist Pablo Torre that the Clippers had circumvented NBA salary cap rules through a now-bankrupt company called Aspiration, one in which Ballmer was an investor.
Torre reported that Leonard signed a contract worth $28 million over four years in 2021 to market and endorse Aspiration but never did so, saying an unidentified Aspiration employee told him the payment was to get around NBA salary cap rules.
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The Clippers denied the allegations in a statement, saying neither the owner nor the team engaged in any misconduct, but Ballmer made his first public comments on the issue late Thursday.
Leonard signed a four-year contract extension worth $173 million with the Clippers in August 2021 and the following month the team signed a $300 sponsor deal with Aspiration, whose name went on team jerseys.
“We were done. We were done with Kawhi, we were done with Aspiration. The deals were all locked and loaded,” Ballmer told ESPN.
“Then, they did request to be introduced to Kawhi, and under the rules, we can introduce our sponsors to our athletes. We just can’t be involved.
“We made an introduction, that was in early November.”
FILE - Steve Ballmer appears at the opening night of the Intuit Dome arena Aug. 15, 2024, in Inglewood, Calif. (Photo by Richard Shotwell/Invision/AP, File)
FILE - Steve Ballmer appears at the opening night of the Intuit Dome arena Aug. 15, 2024, in Inglewood, Calif. (Photo by Richard Shotwell/Invision/AP, File)Source: AP
As part of co-operation with a probe by the US Department of Justice, Ballmer said, he found an e-mail making the Leonard-Aspiration introduction.
“It was early November,” Ballmer said. “The introduction got made and then they were off to the races on, on their own. We weren’t involved.
“I eventually learned that they had reached a deal. I have no idea what the deal was.”
FILE - Los Angeles Clippers forward Kawhi Leonard, right, looks toward the scoreboard during the second half of an NBA basketball game, May 1, 2025, in Inglewood, Calif. (AP Photo/Mark J. Terrill, file)
FILE - Los Angeles Clippers forward Kawhi Leonard, right, looks toward the scoreboard during the second half of an NBA basketball game, May 1, 2025, in Inglewood, Calif. (AP Photo/Mark J. Terrill, file)Source: AP
Asked if he was surprised at the amount of the no-service job terms, Ballmer said, “I don’t know why they did what they did and I don’t know how different it is.
“These were guys who committed fraud. Look, they conned me. They conned me. I made an investment in these guys thinking it was on the up-and-up, and they conned me at this stage.
“I have no ability to predict why they might have done anything they did, let alone the specific contract with Kawhi.” Ballmer told ESPN his first investment into Aspiration was for $50 million and was less than 3% of an ownership stake.
“I had no control over this company,” Ballmer said. “I owned less than 3% of the company. I had no board seat. I had no control. Heck, it was a fraudulent company. It’s possible nobody had any control.”
- ‘Embarrassed’ -
Ballmer said he was embarrassed not to have seen any hint of trouble with Aspiration.
“I reviewed, my staff reviewed primarily fraudulent financials,” Ballmer said. “Should I have sniffed it out? Maybe. I feel embarrassed and kind of silly that I didn’t sniff it out, but I didn’t.
“I made the investment. A lot of other smart investors didn’t sniff it out either.”
ATLANTA, GEORGIA - FEBRUARY 05: James Harden #1 and Kawhi Leonard #2 of the LA Clippers converse during a timeout in the fourth quarter against the Atlanta Hawks at State Farm Arena on February 05, 2024 in Atlanta, Georgia. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and/or using this photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Kevin C. Cox/Getty Images/AFP (Photo by Kevin C. Cox / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
ATLANTA, GEORGIA - FEBRUARY 05: James Harden #1 and Kawhi Leonard #2 of the LA Clippers converse during a timeout in the fourth quarter against the Atlanta Hawks at State Farm Arena on February 05, 2024 in Atlanta, Georgia. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and/or using this photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Kevin C. Cox/Getty Images/AFP (Photo by Kevin C. Cox / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)Source: AFP
Leonard, who won NBA titles in 2014 with San Antonio and 2019 with Toronto, signed with the Clippers in 2019, returning to his hometown.
Leonard also signed a three-year contract extension worth a reported $153 million with the Clippers in January 2024.
The NBA will open an investigation into the matter, according to the report. “I would want the league to investigate, take it seriously,” Ballmer said. “Salary cap circumvention rules are important to the league and I would want the league to investigate.”