Clippers President Lawrence Frank Agrees To Multi-Year Extension
The Clippers have caught fire over the past five weeks and now their top executive is reaping the benefits. President of basketball operations Lawrence Frank has agreed to a multiyear contract extension, four league sources told The Athletic’s Joe Vardon and Sam Amick.
While terms haven’t been disclosed the extension is believed to be for four years. Other senior staff members are also expected to be offered extensions, The Athletic duo adds.
Frank, 55, has served as the Clippers’ front-office president since 2017. He was an assistant coach with the Clippers from 2014-16 after head coaching stints with the Nets and Pistons.
Vardon reported in early December that owner Steve Ballmer was expected to give Frank and other front office members extensions despite the team’s poor start and aging roster. The seemed like a highly questionable decision when the Clippers hit rock bottom at 6-21 after a loss to Oklahoma City.
However, the team has orchestrated a turnaround since defeating the Lakers on Dec. 20. That victory began the Clippers’ current 15-3 run, moving them within three games of .500 and into 10th place on the conference standings, positioning the team for a play-in berth.
That resurgence has been led by Kawhi Leonard, who is averaging 31.8 points, 6.7 rebounds, 3.7 assists and 2.4 steals in his last 15 games and James Harden, who has averaged 25.1 points, eight assists, and 4.3 rebounds during the streak.
Clippers Notes: Harden, Kawhi, Zubac, Collins, Ballmer, CP3
Reports earlier in the 2025/26 season suggested that at least a handful of teams around the NBA were hoping star guard James Harden would land on the trade block with the Clippers off to a very slow start. But Harden, a Los Angeles native, has helped the team turn things around in recent weeks and tells Ramona Shelburne of ESPN that he has no desire to leave L.A.
“It’s hard to explain,” Harden said. “Being at home, that’s like the opportunity of a lifetime for me. Just be able to hoop in front of my family, friends, people I grew up with, people that raised me. It’s a different feeling. So as much as people talk all the time. That’s social media, that’s what people’s jobs are to talk. For me, it’s just like I’m actually living in it so I can’t get caught up in what people talk about, how people feel, whatever the case. I’m from L.A. and I’m blessed to be here.”
The Clippers have gone 11-2 since losing 21 of their first 27 games, but they’d still technically be out of the postseason picture if the season ended today — they have the same 17-23 record as the No. 10 Grizzlies, but Memphis holds the tiebreaker. Still, Harden is confident in the Clippers’ ability to “come all the way back” and continue climbing up the Western Conference standings.
“Some teams, when it gets that bad, they just let the wheels fall off,” Harden told Shelburne. “I had interviews where people were asking me, ‘How do you find confidence?’ and I’m like, ‘The confidence is there. The losses are frustrating, but the confidence is still there.’
“I think finding little tweaks and being a lot better defensively is what really helped us out. … Now we got to take one game at a time, just like when we were in the hole. We can come all the way back, but we have to chip away, chip away and really build some momentum going into the All-Star break.”
Here’s more on the Clippers:
- Along with Harden, star forward Kawhi Leonard has been leading the Clippers’ surge in recent weeks, writes Janis Carr of The Orange County Register. During their 11-2 stretch, Leonard has averaged 32.7 points, 6.9 rebounds, 3.8 assists, and 2.6 steals per game, with a .507/.440/.916 shooting line. “He’s been huge for us in the fourth quarters the last, what, three, four weeks,” head coach Tyronn Lue said. “Just going down the stretch and taking those games over down the stretch has been huge for us.”
- Leonard will be inactive on Friday for the first time since November 22, having been ruled out of a rematch vs. his former team in Toronto due to a right ankle sprain. Center Ivica Zubac (left ankle sprain) and forward John Collins (right groin soreness) are considered questionable to suit up after missing Wednesday’s victory after Washington.
- Attorneys representing Clippers owner Steve Ballmer have filed to dismiss a lawsuit alleging that Ballmer used the former green banking company Aspiration to commit fraud by funneling money to Leonard. Ballmer’s lawyers refer to the allegations as “sensational” and “patently false,” according to Baxter Holmes of ESPN, who has the full story on the latest development in the Aspiration saga.
- Although the Clippers announced they were “parting ways” with Chris Paul in early December, he’s stuck in limbo as the team remains on the lookout for a trade opportunity to avoid waiving his guaranteed contract. Appearing on Good Sports with Kevin Hart & Kenan Thompson (YouTube link), Paul said he’s still hoping to land in a more favorable situation for the second half of the season. “I’m working out and training every day,” he said. “In all honesty, with the way all that stuff went down and all that, I think for me, I just love this game so much that I don’t want it to end like that. I’ve enjoyed the time (off), for sure. I get a chance to go to my kids’ games, but I don’t know yet (where I’ll end up).”
Nets Notes: Porter, Trade Possibilities, Demin, Traore
Michael Porter Jr. might be too good to keep on the roster if the Nets intend to tank, writes Brian Lewis of The New York Post. Porter, who has been an offensive force since he was acquired in an offseason trade with Denver, poured in 28 points in Tuesday’s win at Philadelphia.
It was the latest in a string of impressive performances by Porter, but it’s not what Brooklyn needs if it intends to maximize the value of its first-round pick as owner Joe Tsai suggested early in the season. Sources told Lewis that philosophy hasn’t changed, so Porter may have to be dealt or shut down at some point.
Porter has a long medical history that includes herniated discs, three back surgeries, a damaged peroneal nerve and “foot drop,” which requires him to wear a brace while playing. He’s under contract for one more season at $40.8MM, and Lewis suggests he might have more value to a contender than he would as a long-term piece for the Nets to build around.
Lewis cites the Pistons and Bucks as potential trade partners. Detroit can offer a first-round pick, Tobias Harris‘ $26.6MM expiring contract and another piece such as Caris LeVert, Ron Holland or Jaden Ivey, while Milwaukee could trade its first-rounder in 2031 or 2032, along with Kyle Kuzma and Bobby Portis.
A source tells Lewis that Clippers owner Steve Ballmer is determined to turn around the season after a slow start and is “not interested in rebuilding in any form or fashion.” Lewis proposes a deal sending Porter and Cam Thomas to L.A. in exchange for an unprotected 2032 first-rounder, John Collins and Bogdan Bogdanovic.
There’s more from Brooklyn:
- Rookie guard Egor Demin continues to respond well to challenges from coach Jordi Fernandez, Lewis states in a separate story. Demin turned in one of his best games with 20 points, five assists and two rebounds in Tuesday’s win, and he ranks second among rookies by hitting at least four three-pointers in six games, answering pre-draft concerns about his outside shot. “Egor is a kid that cares so much about doing the right thing the whole time. Obviously it stands out, his size for his position and ability to shoot the ball and share the ball,” Fernandez said. “He does a great job finding the three-point line for his teammates and shooting the three himself, but he’s done a much better job being aggressive getting into the paint. When he’s finished aggressive at the rim, he’s done a great job.”
- In another piece, Lewis examines how the Nets were able to turn around a defense that was headed toward being the worst in NBA history.
- Nolan Traore may get more NBA opportunities after scoring eight points in Sunday’s win over Toronto, per Howie Kussoy of The New York Post. The Nets have brought the 19-year-old French point guard along slowly, playing him mostly in the G League so far. “He did a great job overall. (It) looked like all the minutes he’s played (on) Long Island right now are paying off,” Fernandez said. “And now he came here with a lot of confidence, and this is what it’s all about. Minutes are the best coach to develop you. And he took advantage of those minutes (on) Long Island, and now he’s taking advantage of his minutes here, and he was a big part of us winning this game.”
Clippers Owner Steve Ballmer Sued By Aspiration Investors
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.”
Clippers Notes: Beal, Miller, Paul, Depth, Aspiration
Veteran guard Bradley Beal signed a two-year contract with the Clippers this summer after a disappointing two-year run with the Suns ended in a buyout. The former All-Star said earlier this week that he already feels at home in Los Angeles, as Janis Carr of The Orange County Register writes.
“It’s weird. It feels like I’ve been here for a few years; I feel that comfortable with the group,” Beal said Monday. “They welcomed me in that way too and just made me feel at home and it’s been great, man.”
Beal and the Clippers will face Phoenix in Friday’s home opener after L.A. was shockingly — and thoroughly — dominated in Wednesday’s season-opening loss in Utah. The 32-year-old is on a minutes restriction after undergoing arthroscopic right knee surgery during the offseason, tweets Law Murray of The Athletic.
Here’s more on the Clippers:
- Third-year forward Jordan Miller is dealing with left hamstring soreness and will be reevaluated in about a week, Murray adds. Miller, the 48th overall pick of the 2023 draft, is on a two-way contract with the Clippers.
- Chris Paul will make his Clippers homecoming on Friday after several years away from the organization, but don’t expect him to get swept up in the emotions of the moment, according to Carr. “I’ll definitely be happy and grateful to be here, but I’d be too locked in to really process what’s all happening,” the 40-year-old point guard said this week. Paul, a future Hall of Famer, signed a one-year deal with the Clips in free agency after spending last season in San Antonio.
- As Murray writes for The Athletic, the Clippers are relatively long in the tooth, but they have a talented and deep roster, which may be challenging for head coach Tyronn Lue to navigate, given his preference for using nine-man rotations. “It feels good to have so many options and a lot of different combinations,” Lue said. “And every night could be different; every night is gonna be different. But it’s gonna take us 15, 20 games into the season to really understand our rotations, our chemistry, how we wanna play, who fits well together. So, I’m excited about that.” When the team is at full strength, Murray views Bogdan Bogdanovic and Nicolas Batum as the most likely veterans to be out of the rotation.
- Robert O’Connor and Harriet Ryan of The Wall Street Journal (subscription required) take an in-depth look at Aspiration co-founder Joe Sanberg and the allegations that the Clippers used the now-bankrupt “green bank” company to circumvent the salary cap via a lucrative no-show endorsement deal with Kawhi Leonard. According to the WSJ, Sanberg told a high-ranking Aspiration executive the Clippers initiated the idea of the endorsement contract with Leonard, who was injured at the time. “This is important to the Clippers,” the executive recalled Sanberg saying. While some top Aspiration officials understandably had significant reservations about the deal, they purportedly did not question whether it was a means for owner Steve Ballmer and the Clippers to bypass the cap, per O’Connor and Ryan.
Clippers Notes: Ballmer, Aspiration, Frank, Kawhi, Beal, Collins
Through his philanthropic arm, the Ballmer Group, Clippers owner Steve Ballmer donated $1.875MM to the Golden State Opportunity Foundation, a charity whose founder is disgraced former Aspiration co-founder Joe Sanberg, Pablo Torre reported Monday on his Pablo Torre Finds Out podcast (YouTube link).
Ballmer’s donation came in December 2024, more than a year-and-a-half after the Clippers ended their contract with Aspiration, and nearly a year after it was publicly reported that the now-bankrupt “green bank” company was under federal investigation, Torre observes. It also came a couple months after Sanberg’s co-conspirator was arrested.
It’s the latest update in an ongoing investigation from Torre, other members of the media, and the NBA, which hired a law firm to determine whether the Clippers and Kawhi Leonard circumvented the salary cap through their deals with Aspiration.
In a public statement on Monday, president of basketball operations Lawrence Frank reiterated the Clippers “welcome” the league’s investigation and denied the accusations (Twitter video link via Joey Linn of SI.com).
“We feel confident we are on the right side of this,” Frank said in part.
For his part, Kawhi Leonard denied any wrongdoing and said the investigation wouldn’t be a distraction during the season (Twitter links via Law Murray of The Athletic). Leonard mentioned “conspiracies” multiple times, according to Murray.
“This is old… we already knew this was going to happen,” Leonard said.
Here’s more from the Clippers’ media day:
- Bradley Beal had arthroscopic surgery sometime after the season ended, tweets Murray. Beal said he was playing through right knee inflammation last season with Phoenix and had the knee scoped, which helped, as he’s feeling “good” and “ready to go” now. However, the team said he would be a limited training camp participant, according to Murray, who adds (via Twitter) that Bogdan Bogdanovic (torn hamstring) will also be a limited participant. Leonard is considered healthy and a full participant.
- Beal, who signed a two-year deal (second year player option) with the Clippers after being bought out by the Suns, says he loves living in Los Angeles and has talked with Frank about potentially ending his career with the team (Twitter links via Murray). The three-time All-Star knows he won’t be a primary scoring option for the Clippers and is welcoming the challenge of taking on tough defensive assignments.
- Head coach Tyronn Lue views offseason acquisition John Collins as a power forward who can play some backup center at times, per Murray (Twitter link). The Clippers landed Collins in the three-team trade that sent Norman Powell to Miami. The 28-year-old big man will earn $26.58MM this season before hitting free agency next summer.
Latest On Clippers, Steve Ballmer, Kawhi Leonard
After Mavericks minority stakeholder Mark Cuban suggested in a Twitter post that journalist and podcaster Pablo Torre should dig into the carbon credits that the Clippers bought from the now-bankrupt “green bank” company Aspiration, Torre did just that in the latest edition of his Pablo Torre Finds Out podcast (YouTube link).
Cuban had speculated that those carbon credits could be an easier and safer way for the team to circumvent the cap to pay Leonard, as opposed to simply investing in the company. Since the margin was so high on those credits, those purchases could provide Aspiration with a quick influx of cash that created the appearance of real revenue.
Torre’s findings point to that being a possibility, as the Clippers purchased roughly $21MM in carbon credits from Aspiration in June 2022, shortly before the first payment to Kawhi Leonard for his alleged “no-show” deal was due (Twitter video link). The Clippers had purchased another $35MM in carbon credits in April 2022, right around the time Leonard signed that endorsement agreement that didn’t actually require him to do any endorsement work.
Responding to Torre’s latest report, the Clippers said in a statement those carbon credit purchases were part of owner Steve Ballmer‘s effort to ensure Intuit Dome would be as environmentally friendly an arena as possible.
“Steve and his family are focused on sustainability, which is why Intuit Dome was designed to be a carbon neutral building from its inception and to achieve LEED Zero status over time,” the Clippers said. “Our development agreements for the arena included mandates to buy carbon credits, but after studying the issue of neutrality, we went far beyond those requirements, exploring ways to address emissions from our fans and contracting with Aspiration to directly purchase carbon offsets, as well as broker the acquisition of additional offsets.
“Some of those commitments were built into the sponsorship deal with Aspiration — totally separate of the investment in the company — and we made payments to Aspiration until the company was unable to fulfill their responsibilities.
“This effort reflects Steve wanting to set a positive example and raise awareness of the growing and important role of voluntary carbon markets. Unfortunately, he was duped on the investment and on some parts of this agreement, as were many other investors and employees.”
Here’s more on the ongoing Clippers/Leonard story:
- Within his latest podcast, Torre provided some additional details on Ballmer’s $10MM investment in Aspiration in March 2023, which occurred shortly before the government began investigating the company. According to Torre, Ballmer paid $23 per share at that point, which was more than double the share price he paid when he invested $50MM in 2021. John Karalis of Boston Sports Journal (Twitter links) wonders if that inflated share price was a way for Ballmer to avoid assuming more than a 5% stake in Aspiration, which is prohibited by NBA rules for any company that employs a player as an endorser.
- People around the league don’t expect the investigation into Ballmer, the Clippers, and Leonard to conclude until sometime after the All-Star game, which will take place at Intuit Dome, Jake Fischer said in a Bleacher Report live stream this week (YouTube link). That probe is being conducted by the law firm Wachtell, Lipton, Rosen & Katz, which has led multiple independent investigations for the NBA, including the 2014 inquiry into Donald Sterling that resulted in the former Clippers owner selling the team to Ballmer.
- In case you missed it, John Hollinger of The Athletic took a closer look at earlier this week at the punishments that the Clippers and Leonard could face as a result of the investigation and explained why he doesn’t expect the NBA to void the forward’s contract.
Fear of Losing Kawhi Leonard Influenced Numerous Clippers’ Decisions
The Clippers have been operating under the fear of upsetting Kawhi Leonard and his representatives ever since he signed with the team in 2019, sources tell Baxter Holmes of ESPN.
Landing Leonard was viewed at the time as a major win for the franchise, but Holmes notes that it hasn’t completely worked out that way. Injury problems that began in San Antonio have persisted, leaving him available for just 58% of the games during his time with the Clippers, and the team only has three playoff series victories since Leonard’s signing.
In addition, Holmes states that the Clippers have been sued twice for alleged tampering violations since 2019, they’ve been fined at least twice for violations of league rules involving Leonard and they’ve been the subject of at least three NBA investigations, including the current probe of potential salary cap circumvention involving Leonard’s endorsement deal with Aspiration.
“This last investigation is different,” a former Clippers staffer told Holmes. “This one directly calls into question (owner) Steve Ballmer‘s character. At some point, Steve has got to get out of the Kawhi business.”
The Clippers learned during the 2019 free agency pursuit that life with Leonard would be complex. A source with knowledge of the negotiations tells Holmes that Leonard’s uncle, Dennis Robertson, submitted a list of demands that included part ownership of the team, access to a private plane, a house and guaranteed off-court endorsement money. The source adds that Robertson made the same demands to the Raptors, Leonard’s current team at the time, and the Lakers, who were also heavily involved in the bidding.
Another source tells ESPN that the Clippers didn’t agree to those demands because they weren’t permissible under the collective bargaining agreement, but they did acquiesce to other requests. When he first joined the team, Leonard was permitted to live in San Diego and commute to L.A. by helicopter. He was also allowed to skip certain media obligations and team community events, and he got to bring some of his own circle into the organization.
A team source denies those allegations, telling Holmes that Leonard’s camp never made some of the reported requests and others were mischaracterized.
Another demand from Robertson was a “strict protocol” on how team officials would talk about Leonard publicly, which meant saying nothing unless it was necessary. Doc Rivers, who was the team’s head coach at the time, ran afoul of that policy early in Leonard’s first season when he told reporters that Leonard “feels great” on a night that he sat out a game due to load management. The organization refused to elaborate and was fined $50K by the league, but its silence was seen as a show of loyalty by Leonard and his camp.
A former staffer indicated to Holmes that the Clippers were wary of alienating Leonard after seeing how quickly his relationship with the Spurs dissolved over an injury dispute.
“The Spurs were maybe the most respected, most revered pro sports team in America,” the ex-employee said. “It was like if this guy is willing to tell those people to go f— themselves, he can’t possibly be afraid to tell us to go f— ourselves. … Everybody was afraid of Kawhi leaving.”
Multiple sources indicated to Holmes that details about Leonard’s health were considered to be “sacred secrets.” News releases and social media posts that mentioned Leonard were reviewed by senior leadership before being distributed, and sometimes they were submitted to Leonard’s representatives for their approval. The sensitivity regarding Leonard’s physical condition and the fear of upsetting him led to tensions inside the organization.
“It caused extreme angst within the medical department,” another former staffer said. “It was like the Clippers’ medical staff wasn’t really allowed to touch Kawhi ever.”
The fear of Leonard’s departure seems to have lessened somewhat in recent years, Holmes adds. He was eligible for a four-year, $220MM extension entering the 2023/24 season, but he ultimately settled for a three-year deal at $153MM. Clippers officials were confident that Leonard would accept the reduced offer rather than pursue free agency, where suitors would have required a medical exam.
Leonard’s latest deal runs through the 2026/27 season, and Holmes reports that multiple general managers and other executives he spoke with expect it to mark the end of his time with the Clippers.
“They’re done building around (Kawhi),” a former staffer said. “They know that and he knows that.”
Los Angeles Notes: Jones Jr., Clippers, Silver, Doncic
Clippers forward Derrick Jones Jr. didn’t provide his former agent written notice of 15 days prior to firing him before he signed a free agent contract last year. That was a key reason why an arbitrator ruled that Jones’ former agent, Aaron Turner, was entitled to his full 4% commission of $1.2MM on the three-year, $30MM contract that Jones inked, Michael McCann of Sportico reports.
Jones stated he directly negotiated with the Clippers last year. Prior to Turner’s dismissal, the Mavericks offered Jones a three-year, $27MM contract. Jones testified he was “furious” by the offer, which was much less than he expected.
On June 26, 2024, Jones sent Turner an email saying he was terminating their Standard Player Agent Contract. Two days later, Jones asked Turner to waive the 15-day notice period and Turner declined.
Here’s more on the Los Angeles teams:
- So what kind of penalties could the league hit the Clippers with regarding Kawhi Leonard‘s alleged no-show endorsement deal if it’s determined the team circumvented the salary cap illegally? John Hollinger of The Athletic notes that the league could fine the Clippers up to $7.5MM, fine Leonard up to $350K, forfeit Clippers draft picks, suspend owner Steve Ballmer or other Clipper personnel up to a year and fine them up to $1MM each; void Leonard’s contract and prohibit him from re-signing with the Clippers; and require Leonard to return the money he received from Aspiration. However, if the investigation ends during the season, voiding Leonard’s contract could lead to unintended consequences, with him becoming a free agent and signing with a contender on a minimum contract, Hollinger notes.
- Regarding the investigation, commissioner Adam Silver promised at the Front Office Sports conference that “we will get to the bottom of it,” according to Mike Vorkunov of The Athletic (Twitter link). Silver added that “I don’t know anything about Kawhi’s deal. Show, no show; we’ll certainly find out.” The league hired a law firm to investigate the matter.
- Luka Doncic admits he was shocked when the Mavericks traded him to the Lakers and wasn’t sure how to process it, he told Jason Gay of The Wall Street Journal (subscription required; hat tip to Kurt Helin of NBC Sports). “I didn’t know how to react, how to act, what to say,” Doncic said. “It was a lot of shock. I felt Dallas was my home. I had many friends there. The fans always supported me. I didn’t want to upset Dallas fans. And I didn’t want to upset Laker fans.” Doncic also described his offseason conditioning program, which included one key element. “For the first time, I stopped playing basketball for a month,” he said, replacing that with “pure training and fitness.”
Latest On Clippers, Kawhi Leonard
Clippers owner Steve Ballmer made a second investment worth nearly $10MM in the now-bankrupt “green bank” company Aspiration, according to legal filings reviewed by Mike Vorkunov of The Athletic.
The previously unreported investment, which occurred in March 2023 when the company was “hemorrhaging cash, laying off employees and struggling to raise funds,” was corroborated by a former Aspiration executive, Vorkunov reports.
On September 3, Pablo Torre reported on his “Pablo Torre Finds Out” podcast that Ballmer agreed to invest $50MM in Aspiration in September 2021 (the actual payment occurred in December 2021). Multiple sources tell Vorkunov the Clippers also made a separate $50MM+ investment in Aspiration for “carbon offsetting toward the goal of becoming carbon neutral.”
In April 2022, Kawhi Leonard signed a four-year, $28MM endorsement deal with Aspiration but there’s no evidence he ever performed any work for it.
A subsequent report from Boston Sports Journal, which was confirmed by Torre, indicated that Leonard made a separate side deal with Aspiration to receive an additional $20MM in company stock. That $20MM came directly from co-founder Joe Sanberg.
“I am personally contributing stock to Kawhi to make this partnership possible,” Sanberg wrote members of his leadership team in a May 2022 email obtained by The Athletic. “Aspiration’s CEO judged the deal to be not worth doing. For avoidance of doubt, any and all benefit to Aspiration from the Kawhi deal is being subsidized by my contributing my equity to make this happen.”
Sanberg pled guilty last month to two counts of wire fraud for defrauding investors and lenders of more than $248MM.
Bruce Arthur of The Toronto Star also reported that Leonard’s camp was seeking essentially the same deal he got with Aspiration when he was a free agent in 2019.
Ballmer’s second investment in Aspiration came three months after his college roommate and the Clippers’ lone minority owner, Dennis Wong, invested approximately $2MM in the company after it failed to make a $1.75MM quarterly payment to Leonard, as reported by Torre. Leonard was paid nine days later, on the same day Aspiration laid off 20% of its workforce.
The NBA is investigating whether the Clippers and Leonard circumvented the salary cap through their deals with Aspiration.
Leonard’s contract had certain obligations he was supposed to meet but it also permitted him to refuse to do anything “not consistent with his beliefs,” according to Vorkunov. Former CEO and co-founder Andrei Cherny disputed that Leonard had a “no-show” deal,” Vorkunov adds.
However, Leonard’s contract drew “confusion and frustration” within the company, with one former top executive telling Vorkunov the deal “materialized essentially out of the ether.”
Another former Aspiration executive told Vorkunov that celebrity endorsers Leonardo DiCaprio and Robert Downey Jr. both received less than $2MM in their deals.