On Wednesday, NBA Commissioner Adam Silver expressed a cautious yet patient stance regarding the ongoing investigation into the Los Angeles Clippers for allegedly attempting to circumvent the salary cap in collaboration with team sponsor Aspiration. Following a meeting with all NBA owners, Silver remarked, “I’m a big believer in due process and fairness, and we need to now let the investigation run its course.” He emphasized the need for “substantial proof” of any wrongdoing by the Clippers, highlighting that the burden of proof lies with the league.
Additional reporting from Pablo Torre and the Pablo Torre Finds Out podcast has raised questions about the Clippers' claims of ignorance regarding the situation. The investigation details significant background context that is crucial to understanding the allegations against the franchise.
In 2021, Kawhi Leonard entered into a four-year, $28 million endorsement contract with Aspiration, a company focused on carbon credits that has since filed for bankruptcy. Notably, this endorsement was set to pay Leonard $7 million annually, with payments distributed quarterly at $1.75 million each. However, the controversy centers around the fact that Leonard did not perform any services for Aspiration—no public appearances, marketing efforts, or even social media promotions were made, making this effectively a “no-show” job.
Clippers owner Steve Ballmer had previously invested $50 million in Aspiration prior to Leonard's endorsement deal, which later grew into a $300 million sponsorship for the team. While Ballmer and the Clippers assert they merely facilitated the introduction between Leonard and Aspiration, they claim to have been unaware of the specifics of Leonard’s endorsement contract. The Clippers terminated their relationship with Aspiration in 2023 after the company defaulted on its financial obligations. Ballmer stated, “I was duped” by Aspiration, reflecting the sentiments of many investors.
The latest revelations from Torre's investigation focus on significant events from late 2022. In September, Aspiration missed a scheduled payment of $1.75 million to Leonard as the company was struggling financially. Leonard's uncle and business manager, Dennis Robertson, was actively pursuing Aspiration for the overdue payments, which were deposited into a specially formed LLC for Leonard's endorsement earnings.
Interestingly, on December 6, 2022, Aspiration received a $1.99 million wire transfer from Dennis J. Wong, the vice chairman of the Clippers, despite the company’s deteriorating financial state. This timing raises eyebrows, as Wong should have been aware of Aspiration's struggles, as indicated by public disclosures. Following the transfer, Leonard received his quarterly payment of $1.75 million on December 15, the same day Aspiration laid off 10% of its workforce.
A finance executive from Aspiration remarked to Torre, “It is not a rational investment that someone would make. So it is very shocking to me that $2 million was made as an investment by Dennis Wong, who in my texts is identified as the ‘Clippers’ and Steve ‘Ballmer’s partner.’” This statement raises concerns regarding the nature of Wong’s investment in the company just before Leonard's payment was processed.
The NBA has enlisted an independent law firm to conduct the investigation into Aspiration, the Clippers, and Leonard's endorsement deal. As public speculation runs rampant, Silver has reiterated his desire to complete the investigation before discussing any potential penalties for the Clippers. He stated, “We and our investigators look at the totality of the evidence... I would be reluctant to act if there was sort of a mere appearance of impropriety.”
Ballmer and the Clippers may maintain plausible deniability, claiming Wong's investment was merely to support a failing company where his daughter worked. However, the circumstantial evidence, including the timing of payments and Wong's investment, cannot easily be dismissed. As the NBA season approaches, this controversy looms large, threatening to overshadow the league and its reputation.
