NBA opens probe into alleged cap circumvention tied to Kawhi Leonard endorsement
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The NBA has launched an investigation into whether the Los Angeles Clippers bypassed salary-cap rules through a $28 million endorsement agreement between forward Kawhi Leonard and the now-defunct environmental firm Aspiration, league spokesman Mike Bass confirmed on Thursday.
The inquiry follows a report by ESPN’s Shams Charania alleging the agreement functioned as additional compensation outside of Leonard’s playing contract. According to the report, Leonard was owed $7 million under the marketing deal but performed no work for the company.
In a statement to the Los Angeles Times, the Clippers said neither owner Steve Ballmer nor the organization “circumvented the salary cap or engaged in any improper conduct related to Aspiration.” The team added that it ended its relationship with the company during the 2022-23 season after Aspiration defaulted on its obligations and that it was unaware of any wrongdoing until federal authorities began investigating.
The federal probe culminated last month with Aspiration co-founder Joseph Sanberg pleading guilty to two counts of wire fraud in a $248 million scheme involving lenders and investors.
Questions about the legitimacy of Leonard’s contract intensified Wednesday when journalist Pablo Torre reported on his podcast that a former Aspiration employee claimed Leonard “didn’t have to do anything” to receive payment.
Should the league determine the deal was an attempt to evade salary-cap restrictions, the Clippers could face significant penalties. The NBA’s harshest precedent came in 2000, when then-commissioner David Stern voided Joe Smith’s contract, stripped the Minnesota Timberwolves of five first-round draft picks and fined the team $3.5 million for a secret side agreement. Recent tampering cases under commissioner Adam Silver have resulted in lighter sanctions, typically the loss of a second-round pick, but stiffer measures remain possible if cap circumvention is proven.
No timetable has been announced for the NBA’s investigation, and the league declined further comment.
Source: Hoops Wire
