An announcement from the NBA on Wednesday stated that it will investigate whether there had been $28 million sponsorship arrangement was signed between Kawhi Leonard and a California-based sustainability services company. According to a story by journalist Pablo Torre, it allowed the Los Angeles Clippers to go around league salary cap rules. The Clippers have emphatically rejected any malfeasance and said they backed the inquiry by the league.
The probe will look at the links between Kawhi Leonard, the Clippers, and a company named Aspiration Fund Adviser, LLC, which declared bankruptcy this year. In papers from California, Leonard is named the manager of that company. While 2 is his jersey number, KL stands for his initials. Wednesday’s emails sent to his representatives for comment did not get an instant answer. On Wednesday, NBA spokesperson Mike Bass said, “We are starting an inquiry based on the media coverage this morning about the LA Clippers.”
Last year, Clipper signed Ivica Zubac to a three year $58 million contract extension. In September 2021, Clippers owner Steve Ballmer announced a $50 million investment in Aspiration and the company, in conjunction with the team, declared a $300 million collaboration. About a month after Leonard agreed to a four-year, $176 million extension with the Clippers, this happened.
After two years, the team broke ties with Aspiration, claiming contract default. “Neither the Clippers nor Steve Ballmer circumvented the salary cap,” the team said. “The idea that Steve invested in Aspiration in order to pour cash into Kawhi Leonard is absurd. Steve invested because Aspiration’s co-founders, Andrei Cherny and Joe Sanberg, presented themselves as committed to doing right by their customers while protecting the environment.”
Torre obtained a copy of the endorsement agreement between Aspiration and KL2 Aspire during his inquiry, which provided that Leonard would get $7 million, four years per year. According to this calendar, Kawhi Leonard would have still been owed the last $7 million when Aspiration filed for bankruptcy.
