The NBA's nine-month investigation into the Los Angeles Clippers, focusing on allegations that owner Steve Ballmer circumvented the salary cap to pay Kawhi Leonard, is nearing its conclusion. The probe centered on Ballmer's $60 million investment in Aspiration, a green banking company, and a $28 million endorsement contract Leonard had with Aspiration. Joseph Sanberg, Aspiration's co-founder, was recently sentenced to 14 years in prison, which has expedited the NBA's findings, expected after the NBA Finals.
While the NBA has reportedly found no direct evidence that Ballmer funneled money through sponsors to Leonard, the investigation has expanded beyond Aspiration to at least three other companies. The league is now reportedly focusing on whether the Clippers violated rules by introducing Leonard to team sponsors, potentially constituting a "failure to supervise" employees. This interpretation, however, has been criticized by league insiders as an "outrageous overreach," arguing that such introductions are standard practice for agents and players seeking endorsements.
Ballmer has strongly denied any wrongdoing and has indicated he would not accept any league findings that accuse him or the team of intentionally circumventing the salary cap, threatening arbitration if necessary. The NBA's collective bargaining agreement requires agreement from all parties, including the Players Association, for any findings or discipline. The NBPA has also stated it would take the matter to arbitration if the NBA sought penalties without sufficient evidence, highlighting the high stakes for both the team and the league.
A finding of salary cap circumvention could lead to stiff penalties for the team. The Clippers maintain that "Neither the Clippers nor Steve Ballmer circumvented the salary cap." The situation became more complex when a trade involving Leonard was put on hold by the Toronto Raptors, who were concerned about potential penalties Leonard might face from the ongoing investigation.
