The NBA`s ongoing investigation into alleged salary cap circumvention by the Los Angeles Clippers and owner Steve Ballmer, specifically regarding a `no-show` endorsement deal for Kawhi Leonard with the now-bankrupt company Aspiration, continues to uncover new details.
Investigative sports journalist Pablo Torre, who initially broke this story on his podcast `Pablo Torre Finds Out,` released a fourth episode dedicated to the scandal on Thursday. This episode provides further reporting and more specifics about alleged funding from Ballmer and the Clippers into Aspiration, even after the company`s financial struggles became evident. The latest installment in the Leonard saga features several key revelations.
The most significant discovery involves three installments of prepaid carbon credit purchases made by the Clippers in 2022, totaling $56 million – two years before their arena, the Intuit Dome, was even scheduled to open. These payments, made between April 1 and June 17, 2022, closely coincided with Leonard signing his deal with Aspiration and the due date of his first quarterly payment. Notably, a $32 million purchase of carbon credits occurred on April 4, the very day Leonard signed his endorsement agreement. This agreement, it`s crucial to remember, was never publicly disclosed, and Leonard reportedly fulfilled no actual duties beyond receiving payments.
This timing is particularly noteworthy, especially given public discussions about alternative methods for circumventing the NBA`s Collective Bargaining Agreement (CBA).
In response, the Clippers released a statement explaining that these massive carbon credit purchases were intended not just to offset the Intuit Dome`s environmental impact, but to go `far beyond` those requirements.
Torre`s investigation also delved into a $10 million investment made by Ballmer`s LLC in March 2023. Ballmer`s primary defense has been that he was defrauded by Aspiration. However, this investment was made well after Aspiration`s difficulties had begun and all such problems would have been required to be disclosed in contracts. This final investment from Ballmer occurred just weeks before a government investigation into the company commenced, and merely three days after Forbes published a story detailing the `floundering` company`s dire situation.
The established timeline raises additional questions about Ballmer`s assertion that he was simply a victim of fraud like any other investor. Torre further revealed that Ballmer`s last investment for stock in the company, which explicitly disclosed being in default within its contracts, was priced at $23 per share – more than double the initial $11 share price he paid in September 2021.
Ballmer and Clippers` limited partner Dennis Wong, who reportedly invested $2 million in Aspiration just before a late payment was made to Leonard, were the sole additional investors in Aspiration`s final fundraising round. Torre discovered that 19 investment firms had previously rejected them during what founder Joe Sandberg, in a deposition unveiled by Torre, described as a `vigorous` attempt to raise funds in late 2022 and early 2023.
The crucial question for the NBA now is what this accumulating evidence signifies in terms of proving the Clippers circumvented the salary cap. While the Clippers have provided their rationale for the substantial carbon credit purchases, the continued investment in Aspiration by an otherwise highly astute businessman, when all others had declined, undoubtedly raises significant concerns. It is certainly plausible that Ballmer made an ill-advised investment, but the pressing question remains: why did he commit further funds when others would not?
The league must determine whether this body of proof is sufficient, or if it remains too circumstantial to warrant significant disciplinary action. Regardless, as more details about the situation come to light, public opinion is inevitably being shaped – not just among fans, but also among other owners and personnel across the league.
