The NBA is investigating whether LA Clippers owner Steve Ballmer and the team circumvented the league's salary cap through a controversial sponsorship deal involving star player Kawhi Leonard and the now-bankrupt financial technology company, Aspiration.
The investigation stems from a series of revelations, including Ballmer's significant investments in Aspiration. In 2021, he invested $50 million, coinciding with Aspiration becoming a major Clippers sponsor. This was followed by a nearly $10 million investment in March 2023, a period when Aspiration was facing financial difficulties, layoffs, and struggling to secure funding. This investment came shortly after a similar investment by Dennis Wong, Ballmer's college roommate and Clippers vice chairman.
Crucially, Aspiration signed Kawhi Leonard to a $28 million endorsement deal in April 2022. This deal, however, raised eyebrows within Aspiration itself, with some executives questioning its value to the company. Internal emails revealed confusion and frustration, highlighting concerns about Leonard's minimal marketing contributions and the unusually generous terms of the contract, which included $20 million in equity from Aspiration co-founder Joe Sanberg.
Aspiration's struggles to make timely payments to Leonard further fueled suspicions. Leonard is now listed as a creditor in Aspiration's bankruptcy filings, claiming $7 million. The Clippers are also listed as creditors for a total of $50 million.
The timing of these investments and the Aspiration-Leonard deal has led the NBA to launch a formal investigation. Ballmer has denied any wrongdoing, stating that he was unaware of the specifics of Leonard's contract. However, the investigation will scrutinize whether these transactions were designed to circumvent salary cap rules, potentially leading to significant penalties for the Clippers, including fines, forfeited draft picks, or even the voiding of Leonard's contract. The outcome will hinge on whether the NBA can prove not just the appearance of impropriety, but actual wrongdoing. NBA Commissioner Adam Silver has emphasized that the burden of proof lies with the league and that a thorough investigation is necessary to determine the truth of the allegations. The investigation's findings will have significant ramifications for the Clippers, Ballmer, and Leonard, shaping the future of the team and potentially setting a precedent for future NBA sponsorship dealings.
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Originally published at: https://www.nytimes.com/athletic/6624269/2025/09/12/clippers-steve-ballmer-kawhi-leonard-aspiration-investment-sponsorship/
