The Los Angeles Clippers and their owner, Steve Ballmer, are embroiled in a growing scandal that could have serious ramifications for the franchise.
The NBA is currently investigating whether the team violated salary cap rules during their 2019 recruitment of Kawhi Leonard, potentially through an improper endorsement arrangement. Despite the pressure, Ballmer and his front office remain confident that the organization will be cleared of any wrongdoing.
According to a report by The Washington Post, sources inside the Clippers’ organization claim Ballmer and his leadership team are “steadfast” in their belief that the NBA will exonerate them. The ongoing probe, led by the law firm Wachtell, Lipton, Rosen & Katz, has reportedly disrupted operations inside the Clippers’ front office since it began in September 2024.
One executive told the Post that, although the situation has been “exhausting” and “infuriating,” they are “not afraid” of the outcome, citing full confidence in the franchise’s compliance with league rules.
The Aspiration deal at the center of the controversy
At the core of the investigation is Leonard’s alleged endorsement agreement with Aspiration, a now-bankrupt financial company once promoted for its sustainability-focused services. The deal, valued at up to $50 million, was reportedly tied to Leonard’s presence in Los Angeles and may have constituted an under-the-table incentive to lure him to the Clippers in 2019.
A bankruptcy filing revealed that Leonard’s personal LLC, KL2 Aspire, signed a lucrative contract with Aspiration. The company agreed to pay Leonard around $28 million between 2022 and 2025 for virtually no marketing obligations, raising red flags within NBA compliance circles.
The agreement also reportedly included up to $20 million in stock, and an email trail suggests payments would only continue if Leonard remained with the Clippers.
Aspiration’s co-founder, Joe Sanberg, has since pleaded guilty to wire fraud in an unrelated federal case, further complicating the Clippers’ defense. Ballmer, who invested heavily in Aspiration’s eco-initiatives, insists he was unaware of any impropriety.
The franchise maintains that the deal was a private arrangement between Leonard and the company, and not orchestrated by the team.
Ballmer has called the situation “embarrassing” but continues to stand by his staff. “We respect the league’s process and are cooperating fully,” said a spokesperson familiar with the team’s legal strategy.
Leonard, who is under contract with the Clippers through 2027, recently addressed the situation, stating he has “nothing to hide” and remains focused on basketball. As the Clippers prepare to transition into the Intuit Dome and aim for a championship, the outcome of this investigation could shape not only the team’s future, but also how the NBA handles off-court enticements tied to free agency.
For now, Ballmer and the Clippers are holding firm, determined to weather the storm, and confident they’ll come out clean on the other side.
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