Allegations Against the Los Angeles Clippers
The ongoing scrutiny of the Los Angeles Clippers by the NBA centers on allegations that the franchise may have violated salary cap regulations through a controversial endorsement deal with star player Kawhi Leonard in 2021. Newly surfaced information suggests that Leonard’s uncle and manager, Dennis Robertson, attempted to negotiate similar illicit benefits during Leonard’s free agency period in 2019.
The 2019 Free Agency
In that pivotal summer of 2019, Leonard stood atop the basketball universe, having just achieved immense success with the Toronto Raptors, including winning the NBA championship and earning a second Finals MVP title. As he entered unrestricted free agency at the young age of 28, he was the prime target for several teams, prominently including the Raptors, Lakers, and Clippers, all eager to secure his talents.
The competition for Leonard’s commitment became intense, leading to various reports of Robertson attempting to procure ‘off-the-books’ benefits that were not permissible under the league’s salary cap rules. This contentious atmosphere eventually prompted the NBA’s owners to adopt stricter policies against tampering and circumvention of salary cap laws. Ultimately, Leonard opted for a contract with the Clippers, who, in a simultaneous move, acquired Paul George from the Oklahoma City Thunder in a blockbuster trade that cost them multiple draft picks and younger talent.
Investigation and Findings
An investigation by the NBA followed after concerns were raised that Robertson had solicited unauthorized benefits during Leonard’s free agency, yet findings indicated that the Clippers had not met those requests. However, reports from sources close to the situation confirm that Robertson did reach out to the front offices of both the Lakers and Raptors for additional perks, leading to detailed inquiries about Leonard’s contract discussions.
Unusual Requests from the Raptors
A recent article revealed that Robertson’s requests to the Raptors were unusually extensive and included notions such as ownership stakes in the Toronto Maple Leafs, as well as demands for a considerable sponsorship income, far above standard player endorsements.
Notably, the Raptors realized that Robertson’s intention was to secure ‘no-show’ deals, meaning financial arrangements in which Leonard would not have to actively promote any products or services. This shift in expectations clued in Raptors executives to the fact that they were being approached for arrangements that strayed far from conventional sponsorship agreements, which are restricted by league rules. Consequently, the Raptors declined these proposals. Neither Leonard nor his agent provided responses regarding these new allegations.
Endorsement Deals and Ongoing Investigations
In the wake of these turbulent negotiations, Leonard later signed an endorsement agreement valued at $28 million with Aspiration, a financial services company that has since gone bankrupt. During that period, the Clippers solidified a partnership with the company, further complicating the narrative around salary cap compliance. Reports surfaced of a second deal with Leonard that would ultimately increase his earnings from Aspiration to $48 million, which also raised eyebrows amidst the ongoing investigation.
Clippers owner Steve Ballmer publicly denied any wrongdoing, asserting that all parties involved were cognizant of the rules and maintained adherence to them. Meanwhile, an external law firm has been recruited by the NBA to conduct a thorough inquiry into the matters surrounding Leonard, the controversial Aspiration deal, and the Clippers’ practices amidst allegations of financial impropriety. This specialized firm has a history of investigating previous controversies involving the team, going back several years.
