Los Angeles Clippers owner Steve Ballmer has denied allegations that his team circumvented the NBA’s salary cap rules by facilitating a $28 million endorsement deal for star player Kawhi Leonard with now-bankrupt financial service firm Aspiration Partners Inc. Ballmer expressed support for an investigation into the matter, stating that the Clippers acted within the league’s strict parameters. He emphasized that the NBA’s rules on salary cap compliance are vital to maintaining league integrity, and he would welcome a thorough probe by the league if another franchise was accused of similar conduct.
Ballmer described the situation as a case of being ‘conned.’ He asserted that he was ’embarrassed’ and ‘sad’ about the fallout following reports from sports media personality Pablo Torre, who claimed the Clippers evaded the salary cap by enabling Leonard to receive an endorsement without performing any work, thereby circumventing league rules. Despite the allegations, Ballmer remained adamant in his defense, stating, ‘We did things by the book.’ The NBA confirmed the investigation is underway after reviewing reports and statements from Fox News on Monday, with NBA spokesman Mike Bass stating the league is ‘aware of this morning’s media report’ and ‘commencing an investigation.’ The probe is expected to review the nature of the endorsement and whether it violated the salary cap rules.
The endorsement deal with Aspiration, valued at $28 million, has since become a subject of scrutiny due to the company’s subsequent bankruptcy filing. The firm’s logo was featured on a Clippers jersey patch following a $300 million sponsorship deal in 2021, as reported by the Los Angeles Business Journal. Ballmer was also a co-owner of the company, which adds another layer of context to the situation. The NBA has previously probed Kawhi Leonard for allegations of improper dealings during his free agency in 2019, where the athlete and his team were accused of making unorthodox demands during the selection process. These alleged demands included private jet access, part ownership of a franchise, and off-court partnership guarantees. In 2020, another lawsuit was filed against the Clippers, accusing them of offering Jerry West, a former consultant, a $2.5 million incentive to secure Leonard’s services, but the case was ultimately dismissed without any formal penalties from the league. The ongoing investigation into the Aspiration deal represents another significant step in the NBA’s efforts to ensure financial transparency and adherence to its rules. Ballmer also highlighted the connection with the Department of Justice, which is reviewing the interaction with Aspiration following Joe Sanberg, a co-founder, who pleaded guilty to wire fraud in August 2024. Ballmer stated that Aspiration ‘conned’ him, emphasizing that his investment was made with the assumption that the company was operating in good faith. This situation underscores the complex relationship between athletes, sponsors, and league regulations, as the NBA continues to enforce its financial controls and investigate potential breaches of its rules.