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NBA investigation into Kawhi-Aspiration deal carries major stakes

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TITLE: NBA probe into Kawhi Leonard’s Aspiration endorsement could reshape Clippers’ cap outlook
SLUG: nba-probe-kawhi-aspiration-deal-stakes

CONTENT:

The NBA has opened a formal investigation into Kawhi Leonard’s 2021 endorsement agreement with the now-bankrupt financial firm Aspiration, a probe that league observers say carries major competitive and financial implications for the Los Angeles Clippers and the entire salary-cap system.

Commissioner Adam Silver authorized the review after reports suggested the deal might have provided off-the-books income to keep Leonard in Los Angeles despite the league’s strict “second-apron” luxury-tax constraints. “You cannot have a hard-cap environment and then potentially allow side deals that put money in star players’ pockets,” The Athletic’s Sam Amick told Sactown Sports 1140.

According to Amick, potential penalties include voiding Leonard’s multi-year player contract and suspending Clippers executives for up to one year. Monetary fines are considered negligible for owner Steve Ballmer, whose net worth is estimated at more than $100 billion.

Ballmer acknowledged introducing Leonard to Aspiration executives in 2021 but denied any further involvement. “These were guys who committed fraud. They conned me,” he told ESPN’s Ramona Shelburne.

ESPN’s Shams Charania reported that league investigators plan to interview Ballmer, Leonard and former Aspiration officials while searching bankruptcy filings and internal correspondence for evidence of cap circumvention. Amick credited journalist Pablo Torre’s document review for bringing key details to light, calling it “old-school sleuthing.”

One league source joked to Amick that voiding Leonard’s contract could actually benefit the Clippers by freeing significant cap space for a player who “has barely played the last couple of years.” Leonard missed major portions of the previous two seasons because of injuries.

The Clippers and the league remain in a holding pattern until the inquiry concludes. If investigators find no wrongdoing, Leonard’s deal and the franchise’s roster construction stay intact. Proof of an improper payment, however, could trigger immediate and severe sanctions.

Source: Hoops Wire

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