Eleven former Aspiration investors have sued Clippers owner Steve Ballmer, alleging that he used the company to circumvent the NBA salary cap to pay star forward Kawhi Leonard, reports investigative journalist and podcaster Pablo Torre.
According to Colin Salao of Front Office Sports, those investors initially filed suit against Aspiration co-founder Joseph Sanberg and the company – which is now known as Catona – in July, well before Torre began reporting on Ballmer’s investments and Leonard’s apparent “no-show” endorsement deal. The Clippers owner was added to the lawsuit as a defendant on Monday in the wake of that reporting.
“It served Ballmer’s interest in getting extra money to Leonard so he could circumvent the salary cap, beat out the competition and re-sign his team’s superstar player,” the plaintiffs state in their suit. “Ballmer was complicit in and aided and abetted Sanberg’s fraud for his own self-serving purpose. Ballmer publicly endorsed Catona and infused over $50 million into the company. Absent Ballmer’s support, Catona could not have sustained the frauds set forth herein.”
The NBA is currently conducting its own investigation into the accusations of cap circumvention levied against the Clippers, having hired the law firm Wachtell, Lipton, Rosen & Katz to lead that probe.
While the NBA’s investigation is focused on possible violations of the league’s own rules, the lawsuit – filed in Los Angeles – is about recouping losses for investors defrauded by Sanberg, who recently pleaded guilty in federal court to two counts of wire fraud. Skip Miller, an Aspiration investor also serving as counsel for the plaintiffs, issued the following statement to Torre:
“A lot of people have been hurt here. This lawsuit is being brought to recoup their losses. We look forward to our day in court where everything will be aired out and justice will be done.”
For what it’s worth, the allegations made about Ballmer in the lawsuit appear to be based on reporting by Torre and other outlets — the suit doesn’t include a smoking gun or any new revelations. However, it could lead to more new information about the Clippers’ owner’s connection to the company surfacing as the legal process plays out.
“Plaintiffs allege that Ballmer transferred other funds to Catona to keep the company afloat and buy Sanberg’s support, cooperation and silence about the secret deal with Leonard,” the lawsuit reads, per Torre. “The full extent of Ballmer’s transfers of funds to Catona and Sanberg will be ascertained in discovery.”
I think they missed that he said he didn’t do anything wrong.
Well since he said he didn’t do anything wrong, I totally believe him.
Sure, send it to the kangaroo courts with fixed judges and back door deals.. oh wait
Are you saying wealthy individuals don’t have the same process of justice as the regular citizen? That’s a shocking accusation!
Sounds like your personal problem.
It’s going to cost Ballmer money to fight the lawsuit and in the inevitable settlement. NBA fans only hope is the league comes down hard on him otherwise the precedent will be set that’s it’s ok as long as you dent, deny, deny and cover your tracks.
How tho? These back door deals have been going on since the beginning of the NBA. You don’t think magic Johnson got backdoor deals? You don’t think LeBron James has got back door deals? You don’t think role players get endorsements that nobody really knows about because they’re one or two or $4 million? Even college players back in the day when I was playing college. We’re getting backdoor deals? If your company agreed with it and got free or reduced advertising they that’s on them. The new cap doesn’t allow for this because you would have to take a huge pay cut to make it actual worth it. So for me is he guilty most likely but to me it’s a non-story and the clippers never won a championship or did anything with it. So who cares? Why spend resources and drama on this. Let’s fix other things
Your logic is confused – you’re saying it doesn’t matter because they didn’t win anything, but you’re also telling people Magic and Lebron probably did it too. Magic and LeBron did win titles..so then it does matter, according to you.
Your approach of “let’s ignore it” is probably part of why it supposedly keeps happening.
You have to wonder what took these guys so long. There is obviously an investor fraud lawsuit in this mess. Discovery should be interesting.
Looks to me like Torre a nobody is trying to climb the ladder. By using Ballmer and Clippers. This story is worn out already. It’s up to NBA to investigate the truth. Ballmer didn’t make those deals with Kawhi. Aspiration did. Same company who defrauded many investors. Of course they want to sue Ballmer now. He is the only on with real money. NBA is responsible for getting to the truth here.
Torre is hardly a nobody. He’s already established himself as an investigative journalist.
Only thing he investigates. Is what will get me more exposure more clicks. He’s a nobody to me.
Ballmer didn’t make those deals? He just benefited from them.
Most naive take on this article today Knickerbocker
I know you constantly post on every article so you can’t be blamed for a bad take every once in awhile but the NBA is getting dragged through the mud for cap circumventing and rigging games. Show some awareness for what’s actually happening especially if you care about the game.
I would hardly classify what’s going on right now as the NBA getting dragged through the mud. The only people who care about this are us lol. And we’re the weakest branch of this website.
I’d guess at least 40% of people who call themselves basketball fans even know that this case exists. I’ll be generous and say half of those people care. I’ll be generous again and say that half of that half of people will vocalize any opinion (be it online or in person).
It’s important to put your frame of reference into perspective. For a lot of us on here, the NBA is what we think about. When nobody is around, you have nothing to do, a lot of our minds drift toward basketball thoughts both past and present. As such, we see these stories and they mean a lot more to us than they do to Johnny Regular who watches ESPN in the morning when getting ready for work.
The NBA will be fine. I would put every dollar I have on it.
I disagree but I wouldn’t expect nuanced takes from someone named bonercats. These scandals leave a black eye on the game and are the most popular segments on YouTube shows which is becoming more popular than traditional TV by the day. NBA needs to do some damage control and restore confidence in the game.
Players and coaches gambling on games is not okay to most of us even if you think it’s fine.
LMAO. Hop in line with the people who bring up my name as some sort of evidence that I’m wrong.
News flash buster – you watch those youtube channels. Congratulations. You are trying to speak for an enormous group of people and doing so through a lens that is hyper specific to you.
Nobody gives a sh** that Rozier took himself out of a Hornets game in March. Not the casual fans at the very very least. Wtf else do you want to be done? Arrest them again?
Honestly, how dare you come on these boards and try to speak on integrity of a league while having the name that you have. You are so profoundly unaware. Enjoy your mirror.
Most of these critics here aren’t even basketball fans. They get led like a herd. Cause negative story lines sells. And face it the NBA elite are not who they want to see there. YouTube and social media are the worst fake news there is. Especially when it comes to sports. Its sole purpose is to keep it in the public eye. In any way possible so it can exploited in every way.
I am only about the games and talent. I couldn’t care less about anything else. I stopped watching espn in the 90s. Half the people that come on this board. I doubt they even watch games. They don’t even talk about their team. They talk about everything else. Thats who cares about Ballmer lol.
Every once in a while???
Facts are what they are. Ballmer has nothing to do with what Aspiration does. Or who they make deals with. All there is bs they sell you with no proof. No business man like Ballmer is going to leave himself open to investigation. Even if he did do something. They will never tie him to it. Again there is no proof only Torre yelling wolf every few wks when he needs attention. Until the NBA publicly makes a statement and decision on Ballmer. You can believe all you want. WTF cares what Billionaires spend their money on. Nothing matters unless its proven …..
Mark Cuban’s burner account. Lol. Please see all of his other journalistic works.