The NBA has hired New York law firm Wachtell, Lipton, Rosen & Katz to investigate whether the Los Angeles Clippers and forward Kawhi Leonard used an endorsement agreement with the now-bankrupt fintech company Aspiration to bypass league salary-cap rules, according to The Athletic.
While Wachtell Lipton will direct the inquiry, the league has assigned one of its own investigators to act as a consultant, the outlet reported.
The firm has handled two previous, high-profile NBA probes that ended with ownership changes: the 2014 investigation of former Clippers owner Donald Sterling and the 2022 review of former Suns owner Robert Sarver. More recently, Wachtell Lipton assisted the Boston Celtics during the club’s sale process.
Allegations center on a $28 million endorsement deal Leonard reportedly signed with Aspiration, a contract that, according to journalist Pablo Torre, required no actual work. Boston Sports Journal later reported a separate arrangement that would have granted Leonard an additional $20 million in Aspiration stock.
Clippers owner Steve Ballmer previously invested $50 million in Aspiration, allegedly conducting little due diligence and purchasing shares at a higher price than other investors.
Ballmer and the Clippers have denied wrongdoing and said they will fully cooperate with the league’s investigation.
The matter unfolds as Aspiration co-founder Joseph Sanberg last month pleaded guilty to two counts of wire fraud tied to a $248 million scheme that defrauded lenders and investors.
If investigators conclude the Clippers circumvented the salary cap, the NBA could impose a range of sanctions on the franchise, Ballmer and/or Leonard. The Athletic noted that Commissioner Adam Silver is not bound by a specific burden of proof in making any disciplinary decision.
Source: Hoops Rumors
