The NBA has hired law firm Wachtell, Lipton, Rosen & Katz to investigate the allegations that the Clippers and Kawhi Leonard used an endorsement deal with fintech company Aspiration to circumvent the salary cap, a source tells Joe Vardon, Sam Amick and Mike Vorkunov of The Athletic.
While the New York-based firm will lead the investigation, the NBA also has its own investigator who will serve as a consultant, according to The Athletic.
The NBA previously used Wachtell Lipton in a pair of high-profile investigations of ownership misconduct, per The Athletic’s trio, and both resulted in the owners selling the teams. The first case was back in 2014 with former Clippers owner Donald Sterling, and the second occurred in 2022 with ex-Suns owner Robert Sarver.
Wachtell Lipton was also recently employed by the Celtics as part of the team’s sale, Vardon, Amick and Vorkunov add.
On Wednesday, Pablo Torre reported that Leonard signed a $28MM endorsement deal with now-bankrupt Aspiration but performed no work for the company. A follow-up report from Boston Sports Journal stated that Leonard also made a side deal with Aspiration to receive an additional $20MM in company stock.
Clippers owner Steve Ballmer had previously made a $50MM investment in Aspiration — allegedly with “light-to-no diligence” — and at a higher share price than other investors.
Ballmer and the Clippers have denied any wrongdoing and have said they will fully cooperate with the investigation.
Aspiration co-founder Joseph Sanberg pled guilty last month to two counts of wire fraud for a $248MM scheme to defraud lenders and investors.
If the investigation proves the salary cap was circumvented, the NBA has a wide range of possible sanctions it could impose on the Clippers, Ballmer and/or Leonard, the authors note.
In that scenario, Jason Lloyd of The Athletic argues that commissioner Adam Silver should levy severe penalties on the involved parties. However, Lloyd points out that there’s no specific burden of proof that needs to be reached, so there’s no guarantee the investigation will lead to said penalties.
Lifetime bans for everyone involved. Same for gambling.
I would say make them lose a couple firsts, have to absorb the 48 million paid to kawhi into there cap over the next 4 years. Fine them. Lifetime ban for uncle Dennis the menace and one year suspension for balmer and gm would be somewhere in the range i would think is fair. Something close to that hopefully happens.
There’s close to zero chance this happens. Everyone pulled out their pitch forks too early because they don’t like Kawhi or Billionaires (which you shouldn’t). But this will result in any major penalty. The more other journalists and experts look at it, the more the stances are softening.
NBA has a big history of sweeping things under the rug and integrity isn’t really a thing in the NBA anymore. You definitely could be right.
That sounds like wishful thinking from a Clippers fan. I havent heard any journalists soften on any of this. Most are saying we probably have already met a threshold of proof for some at least moderate to severe punishment.
Now the whole time most people are saying they arent sure if what we have now would meet a threshold to go Joe Smith on them. My guess is at best the investigation will say that a no show deal that pays more than a players shoe contract for nothing constitutes cap manipulation when the funds for that deal just happen to have come in from the owner of the team.
I would say at this point its more on the Clippers to prove they did nothing wrong beyond what current evidence shows. They need documentation that makes this less bad, or they are already going to be punished. Without exoneration the league cant let this go with how big and public it already is. Nobody buys that this was anything but shady, and the burden of proof that exists in court does not here. The NBA has wide latitude to do WTF it wants.
If the NBA doesn’t come down hard on Cluippers there will be rumblings through out the NBA on how to use loop holes to get around teh tax apron. Nba nned to come down hard or other teams will follow.
@Sheldon
No sanction for Kawhi? Why should he get off with nothing?
That’s a fair point. He definitely should have a punishment. Its all unprecedented, I’m shooting from the hip.
The NBA should force the Clippers to immediately trade everyone for draft picks and only let them play 2Way players this year, then the year after, a new owner takes over and gets a clean break, a fresh page to start on.
Thanks Ctrl V!
Good call on the $48M being used against cap over next couple years. Even if it takes them into 2nd apron. I sure hope they enjoyed the Paul George experiment too
@ Davey…..or lets open Pandora’s box and investigate all star types. Ie Steph Curry and LeBron. I mean Steph has multiple endorsement deals with entities or businesses that the Warriors are also in bed with sponsorship wise. Nobody made more from endorsements last season than Steph the crypto king, lol. That Company also went bankrupt. Hell, even sponsored by a company with a patch on the Warriors jersey, OH NOOOOOO. How is that Crypto case coming along by the way….lols. Should have to trade Steph and take their picks away. Torre is a rat. Put the microscope over every team and see what we find.
JP Morgan cough cough. Look into that Torre, lols. You know, the chase centre. Steph signs endorsement deal with JP Morgan in 2016 and eighteen months or so later JP Morgan signs a deal with the Warriors to become the official bank of the GSW….how weird. Conflict of interest much? Lols. This happens everywhere and is a legal way of circumnavigating the cap. The fact Torre is just targeting the mighty all time great franchise in the Clippers is absolutely hilarious. About as hilarious as curtain fanbases ie Warriors and Laker fans losing their mind over the clippers before due process and without doing homework on their own franchise. If the clips get clipped here, every ball club and all nba type talent is going down.
@nrg82 big difference is the deal was to do advertisements for chase. Do you remember him doing commercials with Serena Williams? Curry also did events with Chase and Advance Black Wealth program and a underrated golf events. Not counting all the other PR stuff for Chase.
So now quote me the stuff Leonrad did for his PR pay which was a lot less… Go post it…
FYI Curry got sued along with other athletes that did cryopto advertisements. Seems like a clipper fan is triggered about getting caught doing nothing for $48 million. Next up clipper fans want Curry suspended for
Eat.Learn.Play. Foundation:
Founded by Stephen and Ayesha Curry, this foundation has been a major focus of their philanthropic efforts in Oakland.
Investments: By late 2024, the foundation had invested over $90 million in Oakland children’s well-being, according to its website.
Achievements: This includes providing 25 million meals, helping to remodel 20 schoolyards and 6 gymnasiums, and investing in literacy programs.
Recent Commitments: In 2024, the foundation committed to closing the literacy gap by providing tutoring for 10,000 Oakland Unified School District (OUSD) students.
So kawhi doesn’t donate or have a foundation? Clippers fan, lols. Nice deflection. If you can’t remember I’m a Boston Celtics fan, you’re further gone than I thought.
If you are a celtics fan why do you care what happens to clippers? Why do you call out Curry when the warriors are not hiding anything by giving him a max deal and paying the most money of any team in the history of the NBA for being over the cap?
Haha what? Make it make sense?
lets see $176 million plus $24 million equal $200 million. Weird how that money adds up to a figure an agent will quote for his player. Ballmer will cliam it was all by chance.
Unfortunately your math is wrong. It was 28 million.
Just read that there was another $20 million in stock so now it bring it to $48 million in extra money. which now maxes the extension the Booker got that year for $224.
There wasn’t a single “max free agent contract” for a player in the 2022 NBA season, as maximum salaries are determined by a player’s experience level and which tier of the Bird Rights they fall into. However, a key event that year was Devin Booker signing a four-year, $224 million extension with the Phoenix Suns, averaging $55 million per year, which was a significant contract at the time.
not looking good for Balmer on how much he tries to claim it was a pay off when he invested $50 million in the company almost same amount as what Leonard received.
The numbers are definitely interesting. Not far fetched for one to envision a 50 million “investment” equaling a 2 million payment for facilitating the 48 million to Kawhi.
That is spot on. What a S show.
@arc89 Kawhi’s 2021 contract was the most years and dollars he could sign for at the time.
Doesn’t mean there was no cap circumvention, but he definitely didn’t take a discount on that deal, despite the fact that he’d just torn his ACL and was gonna miss the entire next season.
I’m not sure why there is an investigation. Balmer already said he didn’t do anything wrong.
Because smart billionaires don’t write $50 million dollar checks to companies without doing any due diligence unless….
What about Steve Ballmer has ever made you say “Wow, what a smart guy”?
Meh
Incoming early retirement for the Klaw.
Anyone who followed Leonard’s conduct in his final year with the Spurs will not be surprised by this at all.
If there was cap circumvention, it likely wasn’t the players idea
Yeah it appears to have originated with his Uncle.
Law and order is a very popular TV show. My theory is NBA is inserting some legal drama to drum up interest in the offseason. Conveniently broken by ESPN who then has Ballmer on. Watch this become more entertainment television…just watch
hopefully the NBA comes down hard on Balmer if not yiou are right just entertainment for the NBA.
Completely wrong. Was not broken by ESPN. This is a black eye for the NBA. This is unwanted publicity.
In the current media landscape a heel is just as valuable as a hero. No publicity is bad publicity. Cancel culture is over.
Every once in a while you say something very intelligent. Good work.
Hos body language was poor.and, the assertion that he doesnt know what his or other players get, is also laughable.
If anyone can buy his way out of a situation would be him.
Some Uncle Dennis shenanigans
So they invested in a company? So?
So the company paid a FA $48 mil to do nothing except be on the Clippers, while the Clippers’ owner “invested” $50 million in the company.
It’s hard to believe that’s mere coincidence.
So team owners shouldn’t be allowed to invest in Nike since they endorse players?
Seems like a nice first step for plausible deniability On a lite punishment for Adam the spineless
Oh we had a law team look at it , ThEY advised this, they “ found “ this , they suggested this
The more outside THEYS Adam can find the more he can refract the light off himself in the end
It worked for Stern in the Donaghy case.
Yes, the law firm is for Silver’s protection; to make sure he, and his investigators, don’t (GF) get ahead of owner consensus.
Yup , it’s a pretty paint by numbers operation for the upper class
My bet is somehow they paint a way to put it on creepy uncle to fall on the sword Ohtani style
$28 mil for contract + the $20 mil in stock options is awfully close the the $50 mil Balmer kicked in