Clippers, Ballmer Accused of Using $28 Million Endorsement to Evade Salary Cap
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Pablo Torre’s latest podcast episode alleges the LA Clippers and owner Steve Ballmer funneled $28 million to star forward Kawhi Leonard through a bankrupt tree-planting firm, effectively skirting the NBA’s salary cap.
According to Torre, internal documents from the company Aspiration show Leonard’s LLC, KL2 Aspire, agreed in April 2022 to a four-year endorsement worth $28 million. The agreement reportedly allowed Leonard to keep collecting payments even if he performed no marketing work and would be void only if he left the Clippers.
Ballmer had invested $50 million in Aspiration via his personal LLC on Sept. 14, 2021. Thirteen days later, on Sept. 27, 2021, the Clippers announced a $300 million partnership with Aspiration that included arena naming rights components and a jersey patch.
Leonard’s endorsement was signed nine months after he inked a four-year, $176.3 million contract with the Clippers—the maximum allowed under the league’s collective bargaining agreement at the time.
An unnamed Aspiration employee told Torre the payment “was to circumvent the salary cap.”
Team Denies Wrongdoing
In a statement, the Clippers said, “Neither Mr. Ballmer nor the Clippers circumvented the salary-cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false.” The club added that it ended its relationship with Aspiration during the 2022-23 season after the company defaulted on its obligations and that it stands ready to assist law enforcement.
The NBA has not responded to ESPN’s request for comment. Under the league’s 2023 collective bargaining agreement, cap-circumvention penalties can include fines up to $7.5 million, loss of draft picks, voided contracts and suspensions of up to one year for involved personnel.
Previous Clippers Scrutiny
The franchise was fined $50,000 in May 2019 for tampering after then-coach Doc Rivers compared Leonard—then with the Toronto Raptors—to Michael Jordan. The NBA also fined the organization another $50,000 in November 2019 over comments regarding Leonard’s health and examined separate allegations about improper benefits during his 2019 free-agency recruitment; no penalties resulted from that probe.
Leonard, now 34, signed a three-year, $153 million extension in January 2024 that keeps him under contract through the 2026-27 season.
The Clippers are also defending a 2024 lawsuit filed by former strength and conditioning coach Randy Shelton, who claims he was wrongfully terminated after raising concerns about Leonard’s injury management.
Source: ESPN
