NBA to investigate report of prohibited Clippers endorsement deal with 2-time champion Kawhi Leonard

By David Close, CNN

(CNN) — The NBA announced it would investigate the Los Angeles Clippers following a report by podcast host and journalist Pablo Torre, who accused the team of orchestrating a deceptive endorsement deal to sign then-free agent star forward Kawhi Leonard, circumventing the NBA’s salary cap.

In an episode of “Pablo Torre Finds Out” released on Wednesday, Torre claimed to have gained access to more than 3,000 pages of internal documents and spoke with multiple unnamed sources. Those documents and unnamed sources, Torre reports, puts together a picture of an alleged 2022 scheme to pay Leonard $28 million over four years, which would avoid the league’s salary restrictions.

“We are aware of this morning’s media report regarding the LA Clippers and are commencing an investigation,” NBA spokesman Mike Bass told CNN Sports.

The episode included testimonial audio from a reported former employee of a now-defunct company called Aspiration Partners, Inc., which fronted the money to pay the All-Star without the league’s awareness.

“I didn’t so much discover it (the deal) as I was told about it,” the anonymous person described as someone formerly working in Aspiration’s finance department said on the podcast.

“‘Oh, by the way, we also have a marketing deal with Kawhi Leonard, for $28 million, an organic marketing sponsorship deal with Kawhi,’” the person described being told about the arrangement in which Leonard would not need to do anything in return for the money. “(I was told) If I had any questions about it, essentially don’t (ask), because it was to ‘circumvent the salary cap. LOL,’” the person said.

Torre stated that team owner Steve Ballmer invested $50 million in Aspiration in 2021, although it is unclear what the direct connection is between Ballmer and the reported deal with Leonard.

CNN has reached out to Ballmer, Leonard and the Clippers.

The team issued a statement to The Athletic, which hosts “Pablo Torre Finds Out,” that reads: “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 team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations.

“Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation. The team and Mr. Ballmer stand ready to assist law enforcement in any way they can.”

Aspiration, described as a “financial technology and sustainability services company,” filed for bankruptcy in March. Torre produced an obtained document on the podcast that lists KL2 Aspire LLC, a company allegedly owned by Leonard, as a creditor due a reported $7 million.

Last month, the co-founder of Aspiration Partners, Inc., agreed to plead guilty to defrauding investors and lenders, resulting in over $248 million in losses, according to the US Department of Justice.

Leonard originally joined the Clippers in 2019. He later signed extensions with the team in 2021 for a reported four-year, $176 million deal and again in 2024.

According to the NBA’s 2023 collective bargaining agreement, a team proven to have bypassed the salary cap can be issued penalties, including a fine up to $7.5 million, the voiding of contracts, and the forfeiture of future draft picks.

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