The Los Angeles Clippers and Kawhi Leonard Investigation
The Los Angeles Clippers are currently in a holding pattern as they await the findings from the NBA regarding a potential breach involving star player Kawhi Leonard and an endorsement deal with a now-defunct firm, Aspiration Fund Adviser LLC. The investigation stems from claims made last September by journalist Pablo Torre, which suggested the Clippers had breached salary cap regulations in connection to a $28 million contract Leonard had with Aspiration, a California-based sustainability services company that has since gone bankrupt.
Leonard’s Response and Team’s Position
Leonard has publicly refuted any allegations of misconduct, stating that he has yet to receive the full payment he is owed by Aspiration. In light of the circumstances, the Clippers maintain their innocence regarding any infractions of league rules and have expressed their cooperation with the independent investigation being conducted by the NBA.
“We haven’t learned anything more than we have in September,” remarked Leonard Frank, the team’s president of basketball operations. “We know it’s out there, we know at some point there’ll be a decision made. We very much feel the same thing that we told you back in September, that we’re on the right side of this. It really doesn’t impact anything we do on a daily basis.”
Context of the Investigation
The investigation unfolds as the Clippers prepare to host the NBA All-Star festivities at their newly constructed arena in Inglewood this weekend. Notably, Clippers owner Steve Ballmer had previously invested $50 million in Aspiration, with a partnership between the Clippers and the company announced in September 2021, shortly after Leonard signed a hefty four-year extension worth $176 million with the team.
However, the partnership deteriorated after two years due to Aspiration’s contractual failure. The financial turmoil surrounding Aspiration has escalated, especially after co-founder Joseph Sanberg pled guilty to federal wire fraud charges last August, with prosecutors revealing that he misled investors about the company’s financial health, inflating reported revenues considerably. When Aspiration filed for bankruptcy, it was determined that they owed Leonard approximately $7 million from his endorsement deal.
Leonard’s Reflections
Reflecting on the situation, Leonard stated last September,
“I got to look back at the books, but it was more than that, for sure,”
when asked if he had received his dues. Further clarifying his position, he confirmed,
“Uh, no, but the company went belly up. It was fraud as everyone knows.”
In response to the suggestion that he had not fulfilled his end of the agreement with Aspiration, he countered,
“I don’t think it’s accurate.”
