Clippers reveal statement amid growing scrutiny over additional payouts from Steve Ballmer in the Kawhi Leonard inquiry
The National Basketball Association (NBA) is currently investigating allegations of cap circumvention by the Los Angeles Clippers and owner Steve Ballmer. The investigation stems from a 'no-show' endorsement deal for Kawhi Leonard with the now-bankrupt company Aspiration, which was featured in a Yahoo Finance story.
According to reports, Ballmer and Clippers' limited partner Dennis Wong allegedly invested $2 million in Aspiration just before a late payment was made to Leonard. This investment was made just weeks before a government investigation into the company began and three days after Yahoo Finance ran a story on the company's floundering situation.
Pablo Torre, an investigative sports journalist, broke the story on his podcast. The podcast episode features key unveilings in the Leonard saga, including the fact that Ballmer's last investment for stock in the company was for $23 per share, more than double the $11 share price he'd initially bought in for back in September 2021.
The Clippers claim the massive purchases in carbon credits were not just to offset the Intuit Dome, but to go 'far beyond' those requirements, focusing on sustainability. However, the NBA will have to consider whether the evidence is too circumstantial to prompt a significant punishment.
The investigation is not the first time Ballmer has faced scrutiny. Previously, there have been questions about whether his continued investment in Aspiration, despite other investors not doing so, is enough proof of cap circumvention by the Clippers.
It's worth noting that 19 investment firms turned down Aspiration in a 'vigorous' attempt to raise funds in late 2022 and early 2023, according to founder Joe Sandberg. This raises questions about the financial health of the company at the time of Ballmer's investments.
As more information about the situation becomes unveiled, public opinion is being shaped, not just for fans, but other owners and people who work for teams around the league. Mark Cuban, a public defender of Ballmer in this scandal, stated that an easier way to circumvent the Collective Bargaining Agreement (CBA) would've been to purchase more carbon credits.
The NBA will have to determine whether Ballmer's continued investment in Aspiration, despite its financial problems, is a breach of the CBA. Three installments of prepaid carbon credit purchases from the Clippers in 2022 totaled $56 million. The payments were made between April 1, 2022, and June 17, 2022.
The investigation is ongoing, and it remains to be seen how the NBA will rule on the matter. However, it is clear that the allegations have raised serious questions about the ethical and financial practices of the Los Angeles Clippers and their owner, Steve Ballmer.
